Gamestop Stock Explained Simply.

Gamestock stock is going to the moon.  Why?  Gamestop stock explained in this video and why Gamestop stock could go even higher... but watch out.

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1:52​ What is short selling
6:07​ What is a short squeeze
11:02​ Robinhood restricts retail investors
11:18​ Payment for order flow
13:41​ Should you purchase Gamestop

Gamestop stock has rallied over 1500% in just a few weeks because of the Gamestop short squeeze.  But what is the Gamestop stock rally all about?  Should you buy Gamestop stock?  What is payment for order flow in stock trading and stock investing?  

Here''s basically what happened with Gamestop stock:

Hedge funds shorted Gamestop stock.  Then other hedge funds borrowed the Gamestop stock off of the borrowed Gamestop stock from other hedge funds.  

When you short a stock, you borrow it from somebody.  Then you sell it.  You then wait to buy the stock, then you buy it when it dips lower.  You then turn around to give the stock back and keep the profit.

The key thing is that you must always buy back the stock.  This works well if there is not a short squeeze, that is, there is a movement in price that causes you to buy back the stock, which causes the price to go higher. 

Gamestop stock went through a short squeeze due to Wall Street Bets and other retail traders.  Hedge funds that borrowed shares to short Gamestop stock ended up having to buy back the shares to cover their loses.  And then Gamestop stock went to the moon.

Gamestop stock explained more in detail in this video. 

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