Respect the Trump Pump: Key Takeaways
- StocksToTrade’s Breaking News Chat alerted the Trump SPAC news premarket this morning*…
- Retail traders pile into Trump SPAC, sending it soaring over 350%…
- HEED THIS LESSON ABOUT THE DANGERS OF SHORTING…
Digital World Acquisition Corp. (NASDAQ: DWAC) had a massive short squeeze as Trump haters and short sellers tried to beat down the stock.
But retail traders piled in and squeezed the naysayers…
With $DWAC at $50+ you have to feel for the early shorts, I'm glad I stayed in retirement…you have to feel especially for all the #Trump haters who not only thought they won with #Biden but now are getting crushed in the markets betting against Trump…RESPECT THE TRUMP PUMP! pic.twitter.com/qWHbuvlBLn
Table of Contents
StocksToTrade Breaking News Alerts the Trump Pump
> Catalyst ✅
> Float Rotation ✅
> Cheap Borrows ✅
Never Underestimate a Pump’s Potential
Everyone thought DWAC was junk. So many people are saying that Trump’s a failed businessman with a ton of haters.
Value investors and big hedge funds probably thought shorting this was a sure thing…
NEVER underestimate the power of hype, backed by retail traders, and a celebrity name.
Why Short Selling Is Dangerous
Shorting’s such an overcrowded niche right now. Then they all get stuck and have to buy to cover to get out. Add in retail day traders chasing the action and you get a perfect storm.
It almost tempts me to get back in the short-selling game…
Look at this absolutely beautifullllllll $DWAC short squeeze, it's definitely tempting me to get back in the game, but no need for extra stress and it's just so much fun to watch on the sidelines, nice pre-theater entertainment before #DuneMovie congrats to all longs, whewwwwww! pic.twitter.com/kHJqNrOSfV
But I won’t. It’s way too risky. Trading the big mover isn’t the only way to play these massive movers…
Look For Sympathy Plays
There’s no way I was touching DWAC when it was up over 350%. So I did the next best thing and looked for sympathy plays.
I took a speculative trade in another media stock, Salem Media Group, Inc. (NASDAQ: SALM). When DWAC was trading near its highs, I took 5,000 shares of SALM at $4.08. I sold at $4.20 when I didn’t get the big bounce I was hoping for. And I made $585 in profits.**
There’s always a way to trade safely.
What do you think about the Trump pump and DWAC’s insane run? Leave a comment and tell me if you prefer to trade safe like me or if you got in on this crazy squeeze!
Tim Sykes has a minority ownership stake in StocksToTrade.com.
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