This might sound crazyā¦
But if you want to make more money from trading, why not follow the money?
That said, nothing has been hotter than trading short squeeze playsā¦
Today, I will break down the pattern that helped me nail single-day triple-digit movers VERB on Tuesday and PALI on Wednesdayā¦taking me to $7.5 million in career profits.
Why should you care?
Because if this continues, I expect this pattern to play out a few more times this week, leading to potentially handsome profits.
Why The Shorts Are Getting Worked
Iām not going to lieā¦the majority of the stocks I trade are fundamentally weak companiesā¦some are pure trash.
But Iām not investing in these companiesā¦IāM TRADING THEM.
And thatās where short sellers screw themselves.
They are so focused on the fundamentals that they forget they are trading.
Who cares what the fundamentals are if you are in a trade for a few seconds or minutes?
You have to be able to manage risk, right?
If you short a stock and it goes from $2 to $10, can you handle that from a risk management perspective?
Most traders canāt.
Short sellers are so narrow-minded that they forget that this game is about price action.
When The Worst of The Worst Become The Best of the Best
If you really want to thrive in this current market, you have to be open-minded.
You canāt think in terms of fundamentalsā¦
In fact, thinking logically could be detrimental.
I knowā¦that sounds crazyā¦but recognize the market weāre in.
For example, the ticker symbol VERB didnāt deserve to go up as much as it did on Tuesdayā¦
250% squeeze in 30 minutes š¤ Bet you enjoyed this one @timothysykes $VERB pic.twitter.com/CalstyGY4X
Earlier in the day, the company announced a āgroundbreaking TikTok integration.ā
Could the news be any less significant?
But againā¦thatās not what matters.
What matters is if there is volume in the stock.
The stock went from $0.71 the day before to a high of $3.30, and it traded over $105 million shares.
I didnāt have the worldās greatest trade in it.
But I did recognize the volume surge in the pre-marketā¦
And I waited for a panic dip buy near the open.
While the shorts thought the stock doesnāt deserve to be up this muchā¦
I was thinking how can I safely get into this play while trying to manage my risk.
AHHā¦risk managementā¦something the short sellers know nothing about.
The next day all eyes were on the ticker symbol PALI.
Like the stocks before it, it had pre-market news with significant volume to go with it.
The company announced: Palisade Bio Transforms GI-Focused Pipeline Through Exclusive Worldwide Licensing Agreement with Giiant Pharma, Inc. for Multiple Oral Drug Candidates Targeting Inflammatory Bowel Disease.
And the stock was off to the races.
And again, I waited for some panic selling near the open to get my entry.
I entered at 1.17 and was out by 1.41 right before the halt.Ā
The stock ultimately hit a high of $1.93 intra dayā¦
But I’m not here trying to pick tops or bottoms.
My goal is to capture 10-15% without exposing myself to huge levels of risk.
So letās break it down real quickly:
- Donāt worry about whether the company is āgoodā or not. Instead, focus on whether it has a pre-market catalyst or not.
- If it has a catalyst, watch the volume. Ideally, you want to be trading the heavier volume stocks.
- And of course, it has to be a high-percentage mover. Why? Because shorts are thinking this company doesnāt deserve to be up that much, the more they short, the greater the squeeze gets.
- Trade these stocks, donāt fall in love with them. For the most part, Iām looking at these stocks as plays. I know some of them have run significantly, but Iām not here to chase. Iām here to make a quick move and be out.
- Follow the momentum. I prefer panic dip buying, but if volumes dry up then the stock could just trade sideways to lower the rest of the day. Pick your spots, you donāt have to be in them the whole day or try to HODL.
Want to Learn More About Stocks Like PALI and VERB?
Every day, my team and I host live training sessions.
These sessions discuss what stocks are moving and how to exploit them.
Itās a chance to discover how other successful traders pursue these opportunities.
And the best part is we are bringing them to you at zero cost.Ā
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Hey Everyone,
As many of you already know I grew up in a middle class family and didn't have many luxuries. But through trading I was able to change my circumstances --not just for me -- but for my parents as well. I now want to help you and thousands of other people from all around the world achieve similar results!
Which is why I've launched my Trading Challenge. Iām extremely determined to create a millionaire trader out of one my students and hopefully it will be you.
So when you get a chance make sure you check it out.
PS: Donāt forget to check out my 30 Day Bootcamp, it will teach you everything you need to know about trading.