Even with the overall markets getting battered, there are still PLENTY of opportunities to take advantage of.
In fact, if you’ve been following me closely on social media or reading this blog, this latest sell-off shouldn’t come as a surprise.
Interesting to note these 1987 #stockmarketcrash charts I posted a week ago all signaled a #StockMarket crash THIS WEEK and given the $DIA $SPY $QQQ performance so far, we might be following in history's footsteps. I also warned about this 2 months ago: https://t.co/qlcF19y1Np https://t.co/0qa1sPGNZ6 pic.twitter.com/anh8Fjcnyv
— Timothy Sykes (@timothysykes) October 3, 2023
And while most investors are worried about the upcoming job numbers and what the Fed will do next…I’m getting on the OFFENSIVE.
All thanks to this inverse market we find ourselves in.
Here are my three best tips for trading it.
Table of Contents
What’s an Inverse Market?
Imagine everything you knew about a particular strategy rendered itself nearly worthless overnight.
Believe it or not, it’s happening to short sellers.
The setups that were once ideal for shorting are NOT working right now.
And it’s driving them crazy…causing one massive short squeeze after another.
Here are my top three tips for thriving in an inverse market.
#1 Past Performance Is Not Indicative Of Future Results
I’m a big proponent of studying the past.
I do believe that patterns repeat themselves.
However, that is not the case right now if you’re a short-seller.
For example, you might look at a chart like FEMY from the other day and see that it has a history of crashing on day two after a massive spike…so you think that’s what will happen again this time.
Not in an inverse market…relying on the past to be your guide can end up costing you in this market…especially if you’re a short seller.
Test out many strategies/times of the day to trade/trading setups & optimize your plans over time to focus on works best FOR YOU! Trading can be magnificent/life-changing, but widespread narrow-mindedness/bitterness/laziness holds people back. Be open-minded/dedicated/patient!
— Timothy Sykes (@timothysykes) October 2, 2023
#2 Even Crappy Stocks Can Squeeze
In a normal market, you can expect crappy companies to do some sort of toxic financing to tank their stock.
But instead of waiting for that moment…short sellers are jumping the gun.
They see a BS press release, and they are convinced the stock is a short.
They’ll use tools like a dilution tracker and point out that the company must raise money in X amount of time or it will be bankrupt.
It’s funny because these short sellers are so full of logic, but they have no common sense when it comes to managing risk.
And that’s their downfall.
An oversupply of short sellers and shady brokers over-allocating shares is causing some epic short squeezes.
#3 Don’t Get Greedy
It’s true…playing the short squeeze in an inverse market works like gangbusters.
However, let’s not forget, that the shoe can drop any moment.
That’s why you have to focus on your entires, managing risk, and taking profits when you have them.
The other day, I had a great trade in BNOX.
Earlier in the morning, it was announced that Wall Street Legend, Stevie Cohen invested in the company…but instead of jumping in right away…I waited for an entry that made sense based on risk vs. reward.
In fact, I waited for a dip buy opportunity…
Source: StocksToTrade Breaking News
I got in at $3.3267 and out at $3.65…for a quick 9.7% gain.
Shares traded significantly higher…
But my goal isn’t to hit tops…
If I can consistently make 5-10% on my trades, those small wins will add up.
I know, because that’s how I eclipsed $7.5 million in career trading profits.
Mastering the Madness of Inverse Markets! 📉🔄📈
Ever felt like the stock market has turned on its head?
If recent trends have thrown you off, you’re not alone.
This inverse market is causing ripples, flipping traditional trading strategies upside down. But where many see chaos, I see a goldmine of opportunities. 🌟
🔥 Stocks that once seemed doomed are now rocketing to incredible highs.
🔥 Strategies that once spelled “loss” are now key profit makers.
🔥 The unexpected is becoming the expected.
🚀 Dive into my exclusive live training sessions to crack the code of this inverse market.
🚀 Learn my time-tested strategies that thrive even when the market goes topsy-turvy.
🚀 Watch my team and I break down real-time scenarios and unveil the hidden signals.
🚀 Transform from merely surviving in this market to thriving and profiting!
Want to find order in the chaos and profit from it? The secret to navigating this inverse market is just a click away.