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Short Selling- Tim's Trading Challenge

4 Tips On Trading These Epic Short Squeezes

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Written by Timothy Sykes
Updated 10/13/2023 6 min read

Believe it or not, even with everything happening in the economy and geopolitics… small-cap stocks are leading the market in trading volume and gainers.

Thanks to eager short sellers and missteps by brokers who over-allocate shares.

Recently, stocks like TPST, BPTH, PRZO, SECO, and SASI experienced phenomenal squeezes, recording gains in the triple and quadruple digits.

But here’s the catch: They didn’t sustain those highs.

Trading these stocks requires precision.

You simply can’t buy and hold, nor will diving in without a game plan.

In fact, if you want to stay ahead in these types of plays, you must do these four things.

Before I Kick It Off

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Short squeezes have been the biggest opportunities in the market for some time now.

I’ve written extensively about them on the blog. 

In addition, I’ve made these videos recently:

As well as:

Just click the play button above to watch the videos.

Now, moving on to my four tips for trading this latest batch of short squeezes…

#1 Be Observant: The Market Gives Clues

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The early spikes on stocks like TPST, BPTH, and VS later failed.

This should have been a clue last Friday if you were trading SASI.

Always be vigilant and keep an eye on the latest market trends.

#2 Exercise Caution: Don’t Be Random

You must be aware of your entry prices when you’re trading these high flyers.

I tease overaggressive short sellers…But there’s such a thing as overaggressive buyers, too.

Pay attention to price levels and price action…

Find entries where you believe the risk vs. reward is in your favor.

#3 Learn From Your Mistakes

Tim Sykes in a boat in Italy checking the stocks on his top penny stocks list
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Not all these plays will develop into monster short squeezes. Some might be quick scalps.

Study your past trades, learn from my videos and from the mistakes I’ve made.

After seeing several spikers working…it’s not surprising to see several of them fail now.

Remember, traders are making adjustments as the market is changing.

That’s why it’s important for you to study and learn from mistakes.

#4 Do Your Homework

bottom line about e trade
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Several factors make some of these plays bigger squeezes than others.

Are you paying attention to:

  • The float
  • The catalysts
  • The price action
  • The trading volume
  • How easy or hard it is for shorts to get a borrow

It’s not one thing that sets these moves off but a combination of the factors above.

📈 Unraveling the Secrets of Epic Short Squeezes!

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Small-cap stocks are still squeezing despite all the chaos in the world.

But trading them?

That’s an art in itself.

Short squeezes, like what we saw with TPST, BPTH, and SASI, present golden opportunities, but they’re not without their pitfalls. Dive in too carelessly, and you risk getting caught in the downturn.

🔥 These stocks aren’t about buy-and-hold; they’re about striking with precision, backed by deep market knowledge.

🔥 The market’s always evolving. Are you adapting fast enough? Watching the videos and reading about the tips are just the beginning.

🔥 The real mastery? Understanding those subtle cues and trends before they become mainstream.

🚀 Ready to dominate the art of trading short squeezes?

🚀 Eager to identify and act on those market trends, understanding the real story behind stocks like TPST and BPTH?

🚀 It’s time to go beyond the basics and truly master the strategies that’ll keep you ahead.

Because if you’re not, you’re leaving money on the table.

Your front-row seat to unlocking the secrets of today’s volatile short squeezes awaits.

🚀 Join me in our exclusive live training coming up.

🚀 Dive deep into strategies tailored for these electric market dynamics.

🚀 Real-time analyses decipher the market’s current pulse and possible future moves.

🚀 Don’t be a spectator. Become the maestro of short squeezes.

Are you ready to tackle these roller-coaster rides with confidence and precision?

Your Blueprint for Dominating Short Squeezes is Right Here!

👉 CLICK HERE TO GRAB YOUR SPOT NOW!👈

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Author card Timothy Sykes picture

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. Read More

* 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”