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Short Selling- Tim's Trading Challenge

This Week’s Best Short Squeeze – Still In Play!

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Written by Timothy Sykes
Reviewed by Jack Kellogg Fact-checked by Ellis Hobbs
Updated 11/12/2024 7 min read

It’s Tim Sykes here.

In this 2024 market, we’re seeing MASSIVE short squeezes every month.

  • In September: WHLR spiked 1,100%*.
  • In October: DRUG spiked 3,000%*.

And November’s biggest squeeze just started to spike …

Remember to keep this stock on your watchlist this week! The price spiked 570%* yesterday, November 12, and the intraday price action the rest of the week could show us more opportunities to profit.

We’ve seen these squeeze-plays spike for multiple days!

I already traded the price action from yesterday … Take a look at my trade notes below:

Source: Profit.ly

I make trades like this all the time!

The goal is to take the meat of the move. Then I wait for the next stock to match my trade pattern.

I take calculated profits, that’s the name of the game.

And in this blog post, I’ll show you my exact position on this week’s biggest short squeeze.

Burn this pattern into your brain and keep watching this stock … There will be another chance to trade in the next few days.

BTC Digital Ltd. (NASDAQ: BTCT)

This stock is spiking alongside Bitcoin …

Crypto assets are pushing higher due to the election results.

BTCT isn’t the only Bitcoin-related stock that I’m watching. But it definitely gave us the biggest spike!

When in doubt, focus on the most volatile stock first. It gives us the most room for error.

For example, BTCT spiked 570%* yesterday. I profited 5% from the run.

We’re not trying to catch the whole move! That’s how gamblers blow up their accounts.

Trust the process. Follow my trade patterns. And bounce from one hot stock to the next. That’s how my students and I are profiting right now.

That’s right, I wasn’t the only one to trade BTCT … Take a look at my post on X below:

My millionaire students and I, we all use the exact-same trading patterns.

Volatile stocks like to follow these patterns because people are predictable during times of high stress.

It’s not rocket science, but it does take experience!

And since new traders don’t know what they don’t know … I created the 10-Day Bootcamp!

My newest students can join the Bootcamp with 0 experience. And on day 10, they’re ready to make a trade!

>> Start Your 10-Day Journey To Become A Professional Trader <<

Now, let’s take a look at my trade patterns in action.

Study my trades on BTCT!

It will help you gain experience.

Transparent Trades

I’ve already traded BTCT three times since the Bitcoin breakout.

Bitcoin was showing us bullish volatility directly after the election, but the volatility didn’t spill into the stock market until the immense breakout during the last few days.

Take a look at the Bitcoin chart below, every candle represents three trading days. These are all-time highs:

BTC chart multi-month, 3-day candles Source: StocksToTrade

I was up during premarket on November 12 and saw that BTCT, a crypto play, was spiking.

My first trade was a loss.

But remember that losses are part of the strategy.

Nothing is a 100% guarantee in the market. Sometimes these plays will fail. Luckily, our trade patterns show us when to get out.

I took the loss during premarket and waited for my next opportunity. I didn’t get discouraged! I focused on the process …

Here are my three trades on BTCT yesterday:

Source: Profit.ly

I pulled a net profit of $75, LOL.

It might not look like much, but when we consider that 90% of traders lose money … And most of the BTCT spike was short sellers blowing up … My $75 profit puts me ahead of the pack!

Plus, as I already mentioned, there will be more opportunities to profit from this price action. I’m not done with BTCT!

Take a look at my trades overlaid on the charts below. Study this price action!

Trade #1:

Post image

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On my first trade, I bought shares after the chart broke past key resistance at $4.75.

My goal was to sell into another surge upward. Unfortunately, the stock had other plans.

It broke below support at $4.75, I added shares to get my average down in case it surged upward, but after it cracked lower again I sold for a loss.

On the chart below, every candle represents one trading minute. I also drew a resistance line at $4.75 to show the level that I was working with:

BTCT chart intraday, 1-minute candles Source: StocksToTrade

On to the next …

Trade #2:

I was still watching this stock during premarket, but it didn’t break out.

Instead, I played a classic dip-buy pattern. I waited until the chart showed a significant spike. In this case, it ran back to $5. Then I watched as the price sank and started consolidating above $4.50.

That’s when I bought shares, and rode the bounce.

Take a look:

BTCT chart intraday, 1-minute candles Source: StocksToTrade

Thus far, you’ve seen two different kinds of setups …

  • A break-out trade that failed
  • A dip-buy trade that worked decently.

More Breaking News

Trade #3:

This is another dip-buy example.

Notice how I didn’t trade the intraday spike to $17.

It was tempting, but my break-out trade from earlier failed, so I decided I would stick to dip buying this runner.

After the run to $17, the price fell lower and started consolidating, similar to my trade during premarket.

I bought some shares in the consolidation, and then sold them into the momentary bounce.

Take a look:

BTCT chart intraday, 1-minute candles Source: StocksToTrade

You don’t have to swing for the fences!

  • Control your losses.
  • Control your profits.

When a trader throws caution to the wind, that’s when things start to fall apart.

Follow my trading process!

And get ready for the next opportunity on BTCT this week.

Cheers.

 

*Past performance does not indicate future results


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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”