 Good Morning!  The markets got crushed on Friday for the second week in a row. But it's still my favorite day to trade...
Because while short-sellers are listening to the overall market doom and gloom about GDP contraction and interest rate concerns…
…And shorting any stock that's up…
Traders in the SteadyTrade Team are busy taking advantage of short squeezes.
Not every recent runner has the same potential. Want to learn how to spot the difference? Read on…
And get the tech tool that can help you spot entries on epic short squeezes! An Epic Friday Short Squeeze? On Friday, a SteadyTrade Team member wanted to know whether T Stamp Inc. (NASDAQ: IDAI) was a good short squeeze candidate.
Here's why I didn't like it…
For the ideal short squeeze, I like stocks to pull back from their recent highs. That's what lures in the short-sellers…
But by premarket on Friday, IDAI was roughly 100% off its highs — that's a big pullback.
So even though it was still up roughly 100% from Wednesday's close, all the buying was at higher prices. There are too many bagholders who drank the kool-aid, bought it at $8, and held it…
That means more selling pressure into any spikes. Along with shorts adding to their position. Plus, it had no volume on Friday…
In short, the stock's dead.  IDAI chart: 2-day, 1-minute candle — courtesy of StocksToTrade.com Two Better Plays I Outlined on Friday  And what do you know? The stock broke out on Friday above $4.50 and squeezed through $5.50.
Check out the chart…  CYN chart: 1-day, 1-minute candle — courtesy of StocksToTrade.com Another great Friday short squeeze idea from Friday's morning SteadyTrade Team webinar was Redbox Entertainment Inc. (NASDAQ: RDBX).
I said if it can get above $4.50 it's off to the races…
It was a choppier move than CYN. But it gave you two opportunities to trade the break above $4.50 and catch a $1.50 per share move.  RDBX chart: 2-day, 1-minute candle — courtesy of StocksToTrade.com Both CYN and RDBX weren't massively off their highs. And that's what made them better plays…
So how much do I like to see a stock pullback before considering it for a short squeeze?
I wish I had an exact formula.
But it's not cut and dried…
Sometimes stocks can pull back. Other times they can just chop sideways, then bust through a key level and squeeze.
I can spot them because I have 15 years of trading experience. So I know what to look for on the chart.
If you don't have experience and want to increase your learning curve, consider getting a trading mentor. Or use tech tools to help you spot the right entries and exits for a trade.
You don't have to struggle alone.
Have a great Money Monday. See you all back here tomorrow!
Tim Bohen Lead Trainer, StocksToTrade
sponsored Have you seen what Tim Bohen has been up to EVERY morning between 9:29 and 9:30am?
If not, click here now because he's getting ready to do it again.
Do NOT wait to see this.
sponsored
 If you're worried that the best gains in crypto are long gone…
Or the economy…
Or the crazy stock market…
All your worries could be wiped out with this opportunity…
Recommended Membership Gifts
ACCESS NOW: Click to activate these complimentary membership gifts and receive daily market intel.
  
(As an Amazon Associate, we earn from qualifying purchases.)
13809 Research Boulevard, Suite 500, Austin, TX 78750
*Please note that these kinds of trading results are not typical. Most traders lose money. It takes years of dedication, hard work, and discipline to learn how to trade, and individual results will vary. Trading is inherently risky. Before making any trades, remember to do your due diligence and never risk more than you can afford to lose.
This is for informational purposes only as StocksToTrade is not 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.
StocksToTrade 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.
StocksToTrade in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, StocksToTrade 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, 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.
Copyright © StocksToTrade.com |
没有评论:
发表评论