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3 ways to trade 10x short squeeze moves

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Written by Timothy Sykes
Updated 7/14/2026 3 min read

Short squeezes are dominating this market. The battles are happening every day…

But only one side is winning.

Shorts keep getting destroyed while longs crush squeeze after squeeze.

Twin Vee PowerCats Co. (NASDAQ: VEEE) just surged 900% in two days, from the $4s to the $48s (still holding near the highs as I write this).

A 10x move on a boat manufacturer with a tiny float (pun intended).

Are you kidding me? This is one of the craziest short squeeze environments I’ve seen in my 27 years of trading.

It’s not difficult to find these moves, but you need to understand what’s happening first…

The 3 Keys To Crushing Squeezes

Shorts are doomed in this market, but so are longs who fail to capitalize on these absolute layups.

Opportunity cost is a serious problem. You’ll NEVER grow your account exponentially by watching VEEE run 900% from the sidelines.

I can’t stress how important this is NOW…

Usually, these parabolic squeezes top out after a few hours. The fact that we’re seeing multi-day, 10x squeeze moves shows you just how juicy this market is for longs who know:

  • How to cut losses quickly
    1. How to sell into strength

#1 is #1 for a reason. Cutting losses quickly is more than a trading rule to me: it’s a lifestyle. I’ve passed down to all of my top trading students…

Jack Kellogg wins less than 50% of the time, but he’s still made $27 million+ in career profits.*

How does somebody who barely wins half his trades make that much?

His gains are much bigger than his losses because he cuts the losers immediately.

If you hold losers, you’ll never have the capital ready when the next VEEE sets up.

You have to make every decision you can before the trade even starts…

4 Questions To Ask Before Every Squeeze

You can’t go into these squeeze plays over-excited, heart beating out of your chest, palms sweaty, nervous about the results. You’ll lose.

You need to know your levels, know your risk, and know exactly how you’ll execute at every stage of the setup BEFORE you enter.

Where’s your entry? Where’s your stop-loss? At what price do you start selling into strength? In what portions will you sell your shares?

If you can’t answer those questions, stay out of the trade until you can.

Every one of my millionaire students started out nervous and unprepared. They made bone-headed mistakes and took dumb losses.

But they put their heads down and studied my patterns until execution became automatic.

So the only question is how hard you’re willing to study … because this squeeze season won’t last forever.

Cheers,

Tim


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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.
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* 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”