The shorts are about to get wrecked.
And it’s all because of this crazy new trend I see in the market.
If you’re a newbie trader, you’ll think it’s weird.
It’s weird for me, too, and I’ve been at this for over 20 years.
But there is some massive opportunity once you’re made aware.
You’ll be shocked at what it is.
Table of Contents
Short-Sellers Are Screwed
I started trading during simpler times.
You see, back in my day, for a stock to go Supernova…it required a strong catalyst.
You know…like some breaking news that made the company better, legitimized it, and made people believe it has a bright future.
Don’t get me wrong…promoters were still pumping stocks back then…
But again…
Some effort needed to be made.
NOT ANYMORE.
Take a look at this:
WHEWWWW $AHI NOW UP 1,000% TODAY, WHEN'S THE LAST TIME WE SAW THIS?!? RIP TO SHORTS!
— Timothy Sykes (@timothysykes) June 9, 2023
Pretty wild, right?
Ticker symbol AHI went full-blown Supernova on NOTHING.
Shares of AHI $0.30 to $3.88 in just two days.
Pretty amazing, right?
Typically a move like that was reserved for stocks that had epic catalysts…
But not anymore.
What’s causing these random Supernova spikes?
Dumb & Dumber
Two forces at work are creating these weird random spikes.
- Chat Room Pumpers
- Stubborn Short Sellers
After all, with what’s happened with Atlas Trading, you’d think people would know better than to run shady Discord chat rooms.
But you’d be shocked at the level of stupidity in this industry.
Typically these chat rooms look for stocks that have a low float. But that is not always the case.
But here’s where it gets interesting.
Most chat room pumps fizzle out on their own.
However, stubborn shorts are seeing these stocks pump and getting overly aggressive.
Often, shorting on the first green day…a major no-no in my book.
So…by getting overly aggressive…these shorts are turning these turd stocks into full-out Supernovas.
I know…it’s wild.
More Breaking News
- Innoviz Technologies’ Stock on a Roll: What Factors are Driving the Surge?
- BlackBerry’s Rollercoaster Week: A Strategic Leap or Temporary Surge?
- GBTC Stock: Is a New Dawn Approaching or Just Another Mirage?
But that’s exactly what’s happening right now.
How This Changes The Way I’m Trading
Most short sellers are new to the market.
They have no clue how dangerous the strategy is.
Now, we’re seeing stocks explode off no news.
Short sellers have become the new promoters.
They all huddle up, wishing and praying for the worst to happen. ‘
It’s sick if you ask me. I know I often say to expect the worst from these companies.
But short sellers WANT the worst to happen. They HOPE for the worst to happen.
There’s just something wrong with having such a miserable outlook.
Short sellers have become the new promoters.
They try to justify their arguments with the “fundamentals.”
That’s funny.
Fundamentals don’t matter when you’re trading short-term.
Short-term trading is all about taking advantage of quick inefficiencies in the market…like my panic dip buy strategy.
But not only is the short seller’s logic BROKEN.
What really disgusts me about them is their blatant disrespect for risk management.
THEY LOVE PICKING UP PENNIES IN FRONT OF A STEAMROLLER
Look, I get it.
Most of these companies are crap…and it’s absolutely outrageous that a stock like AHI went from $0.30 to $3.88…
But you know what?
It’s also absolutely outrageous to short it at $2 …even if it’s up for a completely bogus reason.
Why?
Because the risk outweighs the reward.
The main reason I’ve been able to succeed for all these years is that I’ve cut my losses quickly.
When you’re short-selling, you always risk more than you can make.
I can’t tell you how many horror stories I’ve heard of traders losing six and seven figures on a single trade.
I know because some of them were my students.
I always warn them that short selling is risky and that you need deep pockets if you want to win.
I don’t recommend it to anyone because it requires an enormous amount of capital and experience.
Final Note
I actually don’t hate short sellers. In fact, I’m grateful for them. Without them, the markets wouldn’t be as exciting.
Their stubbornness creates one opportunity after another.
That’s why I’m open-minded and watching how the price action unfolds more closely.
Don’t be so quick to dismiss ideas because you have some preconceived notion about a symbol. That’s what shorts are doing, and you see how it’s getting them in trouble.
If you’d like to learn more about how I trade Supernovas, check this out.
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