How to Trade Short Squeezes: $NNOX Example

Weve seen a shift in the stock market pattern the previous couple of weeks. Short squeezes are one of the best trading setups to use to bounce a stock after it has actually pulled back for a couple of days.

Discover how to use this setup in our latest video lesson, where I summarize a recent short squeeze trade I took in $NNOX:

What is a Short Squeeze?

Nevertheless, if the stock keeps increasing, shorts will need to cover their position in order to prevent a huge loss. As short-sellers scramble to cover their positions, they have to purchase their shares back from their broker, causing the stock rate to increase rapidly in worth due to the increasing need.

A short capture is merely an increase in a stocks share price due to the fact that of brief covering. You borrow shares from your broker and then look to buy/cover them at a lower cost when you short-sell a stock.

Short Squeezes = Short Term Trades

Take notice of a stocks brief interest, which reveals an approximation of the number shares short a stock. Stocks with high brief interest are good prospects for this setup, specifically when combined with a technical pattern. You can see a stocks brief interest on shortsqueeze.com.

Ideas on the Overall Market & & Stocks to Watch.

Deal with a short capture trade as a short-term trade, such as a day trade or a short swing trade. In order to trade brief squeezes effectively, you have to have great timing. These are not trades to wed.

Find out all the day trading techniques weve been utilizing for 2 years in our Live Stock Trading Bootcamp. Just 12 seats left, space will up fast.

Join Our Next Live Trading Boot Camp (12 Seats Left).

Short squeezes are one of the finest trading setups to use to bounce a stock after it has pulled back for a couple of days.

Here is video lesson from today where I go through some of the best stocks to watch this week:.

In the last couple of days, we have actually seen indications of the market putting in a momentary base and beginning to rally. This is a terrific time to select up some strong stocks that have drawn back with the market in the last couple of weeks.

Pay attention to a stocks brief interest, which reveals an approximation of the number shares short a stock. Stocks with high short interest are excellent prospects for this setup, specifically when integrated with a technical pattern. You can see a stocks short interest on shortsqueeze.com.