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Trading Lessons

Love Shorts Who Make Lemonade for Longs

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Written by Timothy Sykes Reviewed by Jack Kellogg Fact-checked by Ellis Hobbs
Updated 5/29/2026 6 min read
Love Shorts Who Make Lemonade for Longs Thumbnail

I’m on Italy’s Amalfi Coast where lemons grow in abundance.

You would not believe the size of the lemon I got ahold of last week. It was HUGE…

Just like the short squeezes we saw last month.

Short sellers everywhere got squeezed like the giant lemons they are.

The crazy thing is…

We’re only 4 days away from no PDT rule.

Things are gonna get even crazier this week (no PDT rule should take it to the next level).

Get ready for a short squeeze supernova summer!

And enjoy the lemonade, longs…

This Market Is INSANE!

You gotta love the GIANT runners we’ve seen.

But I would be remiss if I didn’t also thank the giant lemon short sellers…

Thank you shorts for making lemonade for longs!

Without your bitter, angry attitude we couldn’t bank on runners like this…

Last week we watched (and traded) as QTREX Quantum Ltd. (NASDAQ: QTEX) ran from under $1 per share to the high $4s before a big pullback…

QTEX 5-day, 1-min candle, short squeeze
QTEX 5-day, 1-min candle, short squeeze

VCI Global Limited (NASDAQ: VCIG) spiked (and squeezed shorts) from under $1 per share to the $7s…

VCIG, 5-day, 1-min candles, short squeeze
VCIG, 5-day, 1-min candles, short squeeze

And the biggest squeeze last week was just incredible as Astrotech Corporation (NASDAQ: ASTC) squeezed from the $2s to over $63 per share…

ASTC, 5-day, 1-min candles, short squeeze supernova
ASTC, 5-day, 1-min candles, short squeeze supernova

It would be one thing if it was just small companies.

But this market is so crazy that even a $205 billion company like Dell Technologies Inc. (NASDAQ: DELL) spiked 40% after the company reported strong earnings…

DELL, 5-day, 1-min candles, earnings winner
DELL, 5-day, 1-min candles, earnings winner

I’m not suggesting that Dell’s spike is anything other than an earnings beat with an AI backdrop.

But so many runners turned into short squeezes last month. It was CRAZY.

You know the old saying?

When life gives you lemons…

Squeezing Giant Lemon Shorts Makes Lemonade for Longs

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This lemon says pretty much everything about the market right now…

Short sellers have only themselves to blame. It’s not that they’re wrong about the companies.

For example, Astrotech’s press release about building quantum computers on the moon was laughable. There’s even a fake picture of a rocket and machinery on the moon, obviously created with AI.

Quick reminder: StocksToTrade Breaking News alerted ASTC the second it hit the wires. It blows my mind that more people don’t use it (I use it EVERY DAY).

The problem is, short sellers are SO sure of themselves and SO aggressive that when they’re forced to cover…

It skyrockets the price (to the moon, lol).

I LOVE giant lemon short sellers. Later this week, when the PDT rule goes away…

It’s only going to get more exciting.

Again, thank you short sellers and PLEASE never learn.

Millionaire Moves

My millionaire student Mari is making some GREAT YouTube videos now (and tweeting wisdom that every trader should pay attention to).

I hope over-aggressive short sellers ignore Mari’s wisdom!

If you’re serious about trading and want to join Mari and all my millionaire students…

More Breaking News

Apply for the Trading Challenge Today

Catalyst Watch: Countdown to No PDT Rule

Unless something crazy happens this week, my main focus will be the end of the PDT rule.

Even though I expect it to make the market even MORE insane (if that’s possible)…

Nobody really knows what’s going to happen after 25 years with the PDT rule in place.

Whatever happens, there’s very little time left to prepare. But every hour of study you put in from today can help you navigate what’s coming.

On My Radar

I don’t trade options, but people keep asking. If you’re interested in options, check this out…

In the last 5 weeks, Jeff Zananiri has used his “Turbo” Options strategy to uncover peak moves of:

  • 383% in 26 hours*
  • 560% in one day*
  • 823% in 24 hours…*

Join Jeff live to see exactly how it works.  

Study HARD!

Now is NOT the time to get extra sleep or take it easy.

In the past, summers have been slow (a good time to take a step back and recoup).

Not this summer.

I expect this to be a Supernova Summer.

Study HARD!

This is a GREAT opportunity to learn and grow your account at the same time.

Cheers,

– Tim Sykes

 

*Past performance does not indicate future results, Not typical.

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Timothy Sykes

Tim Sykes is a penny stock trader and teacher who became a self-made millionaire by the age of 22 by trading $12,415 of bar mitzvah money. After becoming disenchanted with the hedge fund world, he established the Tim Sykes Trading Challenge to teach aspiring traders how to follow his trading strategies. He’s been featured in a variety of media outlets including CNN, Larry King, Steve Harvey, Forbes, Men’s Journal, and more. He’s also an active philanthropist and environmental activist, a co-founder of Karmagawa, and has donated millions of dollars to charity.
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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”