While the overall market has been an absolute snooze fest the last few weeks…
Traders like myself have been feasting.
All thanks to a wild new stock pattern.
The kind that took CCG from $12 to $200.
And AVGR from $4.41 to $15.25.
Today I’ll tell you how I’ve been trading this crazy pattern and the three ways to take advantage of it.
Table of Contents
This Is Absolutely Wild
Trading is all about adapting. If you want to make money, then you have to follow the money.
That means you have to remove your biases. Cause the market for sure doesn’t care what you think.
And right now…there’s nothing more profitable than short squeeze plays.
There’s too many short sellers out there…and too many shady brokers giving away easy borrows.
And because it’s such a crowded strategy…we are seeing one epic short squeeze after another.
I’m going to share with you the three things you must be on the lookout for to take advantage of this phenomenon.
#1 Focus On Short Squeezes in Weak Companies.
We live in such a bizarre world. The weaker…the crappier the company…the more shorts that pile in…the bigger the squeezes get.
Trading is all about adapting.
And right now, the worst companies are the best trade.
What I’m focusing on is the largest percentage and volume gainers.
We’re seeing explosive moves in these stocks as aggressive shorts get sucked in and then scramble to cover their positions.
— Timothy Sykes (@timothysykes) September 20, 2023
#2 Prioritize Risk Management
Just because shorts are easily getting squeezed doesn’t mean all longs will make money.
You need to have a trading plan.
I’m looking at these plays when there is a dip buy opportunity.
More importantly, I’m looking to make money off quick spike ups.
I understand that some of these stocks have triple-digit gain runups.
But I also know that these are the worst of the worst.
At any moment they can do an offering and tank the stock.
So while i do see massive opportunity, I’m strategic with my entries, and I’m focused on my risk.
That’s where the shorts fail miserably.
They are absolutely right in shorting these crappy stocks.
But most of them have no concept of risk management. And that’s why they shouldn’t be shorting.
Not only does your timing need to be perfect, you also need deep pockets to ride a drawdown.
It’s hard to get out of a trade when you are fundamentally right…and that’s why we’re hearing so many horror stories about shorts getting blown out.
If you can’t manage risk then your strategy sucks.
#3 Be Flexible and Open Minded
If you follow the blog then you know I love dip buying at or near the opening bell.
However, I’ve now looked at dip buying opportunities at various times throughout the day.
In other words, keep an open mind and don’t always be so rigid.
I know I talk a lot of smack about short sellers, but I used to be one of them. The reason why I’m not anymore is because I recognized the risk vs. reward shift.
Trading is all about adapting.
That’s the only reason why I’ve been able to stay consistently profitable after 20 years in this game.
You have to flow with the market, and go with where the trends are.
They say you shouldn't post your p&l because it's cocky however $AVGR was good to me today and yesterday and the Chart is clean. Shout out to @timothysykes @StocksToTrade the knowledge behind them is Awesome. Singles add up@profitly
Uploading my live video later pic.twitter.com/wHimoRwAzG
— Michael Parker (@ParkerSolver) September 19, 2023
Right now there are so many opportunities with these short squeezes.
But you still need to have a trading plan, you still need to be smart, and you must keep an open mind.
What’s The Next Big Short Squeeze
I pride myself on being a real trader with real results.
But more importantly, I pride myself on being a top coach.
With more than 30 of my students now millionaire traders, there’s a lot you can learn from us.
Everyday this week we’re hosting live training sessions.
They are spread out throughout the day, so you should be able to find a slot that fits your schedule.
It’s up to you to take the next step…no excuses!