Are you tired of missing out on incredible trading opportunities that could help your small account grow exponentially?
Volatile penny stocks can have massive gains in a single day or even in a few minutes…
But you can’t take advantage of the moves unless you know how to spot them before they happen…
That’s what I’m going to help you do today.
There are three things I look for to help me spot some of the biggest movers…
I’ll tell you what they are and show you how they can help you spot stocks with the potential to squeeze 100%, 200%, or even 300%!
Let’s dive in … But first…
Happy (early) Fourth of July! To celebrate, I’m giving a special one-time live workshop on July 4 at 10 a.m. Eastern — click here to register. There will be special offers for attendees, so don’t miss it!
Table of Contents
How to Find Short Squeezes
To find short squeezes, you can run a simple scan…
StocksToTrade has built-in scans that can help you identify some of the best opportunities with just one click.
When you’re building your own scan, don’t overcomplicate things.
There are three criteria I look for to help me identify stocks with the potential to squeeze.
Let me break them down and explain why they’re important…
Lower Float, Greater Potential
The float refers to the number of tradable shares available in a stock.
Think of it as the supply. Lower float stocks are what we’re looking for because they have limited supply and higher demand.
Just like in any market, when supply is low and demand is high, prices tend to go up.
We want to look at stocks with floats of less than 10 million shares. And the lower the float, the better.
The Power of News
Having some sort of news or catalyst can increase the likelihood of a short squeeze.
News attracts both buyers and short sellers.
Some uninformed traders believe press releases, so it creates fuel for the stock. Even dubious press releases can attract short sellers, and that’s where we come in.
We trade the chart patterns that emerge when shorts pile in and we get a dip and rip. It’s like pouring gasoline on the fire and accelerating the short squeeze.
Unusual Volume Creates Unusual Price Action
Always look for stocks that are trading high volume.
I like to see stocks trading volume higher than the 60-day average volume. I also like to see higher volume than the float size so you get constant float rotation.
That means buyers keep coming in and creating demand. And when you couple that with a low supply of shares — that’s when you can see those explosive upside moves.
When scanning for stocks in premarket, look for stocks trading at least 1 million shares.
What If You Miss The Big Move?
The best short squeezes and trading opportunities are often multi-day moves.
When you have float rotation and trapped short sellers, days two, three, four, or even five can bring the biggest moves. So, get out of the mindset of trying to catch day one.
The longer the squeeze goes on, the more chances you can have to trade it.
By understanding the power of low floats, high volume, the influence of news, and the benefits of multi-day moves, you’ll be better equipped to find these exciting trading opportunities.
Keep it simple, stay focused, and let StocksToTrade be your guide to help you uncover short squeezes.
Attend my free special workshop tomorrow and snag some freebies just for attending. See you there!
Have a great day everyone.
Tim Bohen
Lead Trainer, StocksToTrade