Last week’s meme-stock frenzy got out of control FAST.
Faraday Future Intelligent Electric Inc. (NASDAQ: FFIE) spiked higher every single day. The whole move measured 9,600%.
Luckily, my students and I had an AI bot that tracked the price action.
Even if you were completely new to trading, XGPT alerted several profit opportunities throughout the week.
Take a look at the chart below, every candle represents one trading minute:
>> Here’s where you can find the next AI trade alert <<
Now, when a new trader looks at a spike like FFIE, and they see my students and I pulling insane profits, they tend to get ahead of themselves.
FOMO is a very powerful emotion in the stock market …
And believe it or not, the existence of FOMO is one of the reasons traders like me and my students can profit.
Human beings are inherently predictable during times of high stress. Like when they have a few thousand dollars in a stock spiking +1000%.
When a trader starts to feel stressed, they’re playing directly into the framework that I use to profit.
It’s my job to teach traders how to step back and recognize these patterns in the market. Don’t let FOMO work against you. Instead, use it to help build your account profits.
The Reality Behind These Stocks
When a trader looks at a chart like FFIE, it’s easy to think:
“Everybody’s making money! Riding this momentum must be easy!”
Wrong.
90% of traders lose. Especially when it comes to big stock spikes like FFIE.
Meme runners like FFIE and GME are actually massive short squeezes.
See my post on X below for more details:
CRAZY to see how $FFIE bubble popping likely caused crashes in similar low-priced short squeeze stocks like $CYN $CRKN $GWAV as the shorts that survived through this mass-extinction event could use their funds to bear raid those other plays that were previously squeezing only due…
— Timothy Sykes (@timothysykes) May 16, 2024
Most of the bullish momentum comes from short sellers blowing up. It looks like strong bullish buying, but in reality, there are very few who are riding this momentum for a profit.
It’s possible to trade these runners … But don’t let the FOMO lie to you.
My students and I just aim to take the meat of the move. None of us profited anywhere close to 9,600% on FFIE.
For example, here’s a trade that Jack made for a 46% profit, with a starting stake of $56,700:
A 46% profit is HUGE in our niche. Usually we aim for 10% to 20%.
Don’t lose your head. Control your expectations and focus on the best setups from each of the hottest stocks that we’re watching.
And if you don’t know what that looks like: Lean on XGPT.
The AI bot is programmed to follow our trading framework to a T.
And you already saw the trade alerts it sent out for FFIE last week … Get ready for this week’s runners!
Cheers.
*Past performance does not indicate future results
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