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The 7 Key Catalysts That Can Lead To Epic Short Squeezes

Jack KelloggAvatar
Written by Jack Kellogg Reviewed by Matt Monaco Fact-checked by Matt Monaco
Updated 11/12/2024 8 min read
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In my journey to amassing over $7.8 million in trading profits and coaching over 30 of my students on their way to becoming millionaire traders…

I’ve encountered numerous catalysts that can propel stocks to staggering heights.

Understanding these catalysts is crucial for any trader looking to succeed at day trading.

Mastering these catalysts can turn a small account into substantial sums.

Here are seven key catalysts you should be watching.

#1: Revolutionary Product Launches

 

When a company announces a groundbreaking product, especially in tech or pharmaceuticals, it can cause a significant spike in its stock value.

These products could range from innovative medical treatments to cutting-edge technology solutions.

Keep an eye out for product launch announcements and be ready to act…

That’s what I did two weeks ago when I spotted an opportunity in the ticker symbol SHOT.

#2: Mergers and Acquisitions

The announcement of a merger or acquisition involving a small-cap company can send its stock soaring…

Such corporate moves often signal market confidence and potential growth, making these stocks attractive for short-term pops.

More Breaking News

#3 Regulatory Approvals

In sectors like biotech and pharmaceuticals…getting approval from regulatory bodies like FDA is a massive deal.

Such approvals often indicate the company’s growth potential and can lead to substantial gains.

#4: Strong Earnings Reports

Positive earnings reports, especially those surpassing market expectations…can be a potent catalyst.

They signify a company’s financial health and growth trajectory…

And since most Wall Street firms ignore micro and small cap stocks…positive earnings reports can be amplified.

In fact, I’ve had great success over the last few months dip buying earnings winners.

And if you’d like to learn more about how I’ve been trading the strategy lately then read this blog post.

#5: Strategic Partnerships

Small companies announcing partnerships with industry giants can experience a sharp increase in stock prices.

These partnerships often provide smaller companies with credibility and access to broader markets.

#6: Industry Trends and Innovations

Being in line with or ahead of industry trends, such as renewable energy or AI technology, can be a significant catalyst for penny stocks.

Companies that innovate or pivot to meet these trends often see considerable interest in their stock price.

#7: Social Media and Influencer Impact

 

In today’s connected world, endorsements or mentions by influential personalities on social media can act as a catalyst.

A single tweet or social media post can lead to a surge in a company’s stock, especially if it goes viral.

 

 

Whenever You’re Trading Catalysts…Remember My 7 Penny Stocking Framework

 

 

Most small and microcap catalysts fade…giving up their gains and then some.

In order to take full advantage of these catalysts you must learn my 7 Penny Stocking Framework. 

Watch the video below to see how it works:

Ready to Unlock the Secrets of Epic Short Squeezes? 📈

 

Ever wondered why certain stocks skyrocket while others don’t budge? The key lies in understanding the catalysts that trigger massive market movements.

In my latest blog post, I’ve revealed the 7 Key Catalysts that can lead to mind-blowing short squeezes, the kind that transformed my trading career and helped mentor over 30 millionaire students.

 

From revolutionary product launches to strategic partnerships and social media influences, I’ve broken down each catalyst that has the potential to turn the market upside down.

But knowing about them isn’t enough. To truly capitalize on these explosive moments, you need to master the art of trading them.

 

🚀 Join us for our next upcoming live training sessions today!

 

This isn’t just another webinar. It’s a deep dive into the strategies that have made me and my students successful:

 

🚀 Explore real-life examples of catalysts and how to spot them.

🚀 Learn actionable strategies tailored to capitalize on these market movements.

🚀 Get real-time analysis, uncovering unexpected market behaviors.

🚀 Don’t just react to the market – learn to stay one step ahead.

 

Trading isn’t just about making plays; it’s about making the right plays at the right time.

If you’re tired of missing out and want to learn how to navigate the market’s twists and turns, this training is for you.

Whether you’re a seasoned trader or just starting, these insights could be the turning point in your trading journey.

Be prepared to decode the penny stock conundrum, even when it defies logic.

 

👉 Are you ready to embark on a journey that could redefine your trading experience? CLICK HERE TO SECURE YOUR PLACE and transform the way you trade.👈

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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”