1. When a stock has been downtrending for a long time, a lot of funds, aggressive traders have been shorting it, and as the momentum swings the other way, a lot of stubborn longer term shorts are covering, which leads to a good shorting opportunity of those squeezes.
2. When a stock is overextended, it doesn't mean that it can't go higher.
3. Trading is a lot more stress free when you're willing to choose your spots carefully.
4. When a stocks rests for a couple of days after a big run up, there's a good chance of it squeezing especially if the market is up on the day.
5. Stocks that react well to earnings can run longer than you might think.
6. You gotta give yourself the chance to stay in the trade (if sometimes it goes wring way for a couple of minutes), but ONLY IF RISK/REWARD IS FANTASTIC.
7. Play the price action. Don't anticipate. Don't hold and hope.
8. When a stock is slowly downtrending for a couple of days and it comes close to the support level, it may tank in the morning.
9. When there are many shorts in the downtrending stock, that takes a while to come down, you gotta wait till all those shorts get bought in or cover, and when they're over it may lead to a nice panic.
10. When a stock is failing to bounce back towards its highs, it's an indicator that a stock is losing some steam.
11. You have to be bearish on parabolic charts, but understand that they can squeeze and be careful.
12. Keep watch lists sorted by theme. This way you can play a couple of best stocks in the hot industry.
13. If you want to short the stock you gotta get in after the early shorts have been squeezed out.
14. Let the short squeeze go higher and then short into resistance.
15. When a stock cannot go green and it opens red, fails to bounce, you gotta hit the short button.
16. It is much more safe to short in the afternoon, than in the morning.
17. It's very dangerous to be shorting Phase 3 biotech play.
18. You gotta have patience to wait for proper setups.
19. When you're constantly losing, pull back and focus on stuff that you know best.
20. Don't buy stocks that are down on the day premarket, the odds of them spiking is too low.
21. You want to trade gimmies. If there are no gimmies, don't feel the need to trade.
22. Don't be afraid of missing out, be afraid of losing money.
Who knows the biotech sector, well, Supertrades?
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great notes. This is very helpful and sticking to the gimmie patterns is the key to success. I've found that going long on afternoon short squeezes and afternoon fades (shorting) works best for me. Need to resist fomo lol
Great write-up!
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