Today on SteadyTrade we have a very special guest — Dan Pipitone, the co-founder of TradeZero.
If short selling plays any part of your trading strategy (hey, short squeeze), you won’t want to miss this.
Our hosts Tim Bohen, Kim Ann Curtin, and Stephen Johnson sit down for an interview with Dan about brokers, borrows, and short selling.
Stephen calls Dan “the man who made hard-to-borrow stocks easy to short for those with small accounts.”
And Stephen’s eager to see how Tim — a die-hard long-biased trader — and Dan get along.
Let’s start at the beginning…
Dan Pipitone and the Idea Behind TradeZero
Dan and his partner started TradeZero in 2013 in the Cayman Islands basically because as he says, “the easy-to-borrow list at their clearing firm was terrible.”
Back then, it was a totally different market — nothing was built into platforms. If you wanted to short a stock you had to pick up the phone and call your broker to see if there were shares to borrow.
Dan saw a way they could automate it all to try to make it easier.
As he says, it’s one thing to be long and wrong … But it’s even worse is to know that a stock will fail, but you don’t have access to any shares.
Traders want to know “when you go to click the button, that the button is clickable.”
That’s what Day says TradeZero is all about — giving traders more access, advantages, and options. It even gives traders the ability to sell their locates back, like a marketplace. You gotta hear how this works!
Is TradeZero Just for Short Selling?
TradeZero doesn’t discourage long traders. But as Dan says, “there’s nothing sexy” about the availability of stock for a long trade … If your broker doesn’t have stock for you to buy, you need another broker.
For Dan, TradeZero is about the democratization of the stock market. He doesn’t think traders should be penalized for being contrarian thinkers. Having stocks available for shorting is a top priority, but having them at a decent price is a close second…
It’s all about giving traders access to stocks so they can choose the strategy that works for them.
And what about the risks of short selling and margin? Tune in to hear Dan’s insight for new traders considering shorting as a strategy … He weighs in on the hard truths about the risks and potential opportunities.
He’ll also share the one thing every trader needs to have to become consistent — whether you’re long biased or a short seller.
(Want more on shorting stocks? Listen to Stephen’s guides to short selling in episode 36 and episode 37.)
Dan Pipitone on This Crazy Market
Dan says it succinctly: “It’s been insane.” The company is growing fast. So for Dan, it’s been a learning experience in how to delegate.
The number of staff members has tripled and there are some growing pains. Through all the growth, there are plenty of lessons on things done well and areas for improvement.
Dan still has plenty on his to-do list — and even wants to create a whole new level of service. Options traders may be excited to hear this…
What Do Our Hosts Think?
Kim wants to know what sets TradeZero apart and what new traders need to know…
Tune in to hear all the benefits Dan says this broker has to offer. It’s a long list! Commission-free trades and good borrows are just the beginning … It’s also got a paper trading feature.
Our hosts love what Dan Pipitone has to say. For Kim, it’s been a huge eye-opener. She loves that Dan created something the marketplace wasn’t providing, and she learned a ton about short selling.
Even Tim seems excited about the possibility of easy borrows. Could he join the dark side?
And Stephen credits TradeZero as the broker that made him profitable. But we know his success is really due to all his hard work.
Tell Us What You Think!
What do you think of this interview with Dan Pipitone? Is short selling part of your strategy? Do you have trouble locating shares? Leave us a comment and let us know.
Remember: if we select your question or comment as an on-air topic, you could win a SteadyTrade mystery gift box. Share your thoughts below or on YouTube!
Thanks for tuning in to the SteadyTrade podcast. Stay tuned for weekly episodes featuring the hottest topics for aspiring traders.
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Meet Our Hosts
Get to know Tim Bohen, Stephen Johnson, and Kim Ann Curtin here.
Follow our hosts on social media…
Tim Bohen
Twitter: @tbohen
Instagram: @tbohen
Stephen Johnson
Twitter: @Jonk87
Instagram: @stephenjonk87
Kim Ann Curtin
Twitter: @kimanncurtin
Instagram: @kimanncurtin