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There were plenty of action-filled trading opportunities on Friday, despite it being a half-day in the market.

One of them was Aurora Cannabis (ACB), which shot up by 20% after it was announced that a Federal marijuana legalization bill was set for a congressional vote.

*Nice bit of gravy for Double Down members
*See disclaimer below

But I didn’t jump in because of the headlines…I was already in beforehand…thanks to the setup.

Here’s what I’m like going into Monday:

Workhorse Group (WKHS) – 35% Short Float

You’re probably thinking to yourself – Nate, why would you go with an electric vehicle company? Didn’t they get slaughtered last week?

That they did.

But they staged an epic comeback, signaling underlying strength.

Don’t get me wrong. At some point, these companies will crater.

Until that happens, there’s plenty of money to be made on the long side.

Note: I trade options specifically because the stock could collapse at any point!

Now, Workhorse Group (WKHS) is a favorite of mine I traded numerous times this year for a profit.

In LottoX, I traded it at least a half dozen times.

So, why wouldn’t I choose this stock?

I mean, with a 35% short-float, this could set up for a short squeeze that could send shares up another 50%.

How would that work you ask?

Traders that sell shares short borrow on margin. When the stock goes up, they lose money. The higher it goes, the more they lose.

At some point, their broker cuts them off and forces them to close the trade. Only way they can do that – buy the stock back.

That pushes shares higher, causing a cascade of short-covering – hence the short-squeeze.

What chart could cause this blitzkrieg of buying?

Take a look.

WKHS 78-Minute Chart

Such a beauty if my kid brought this home from school I would hang it on my fridge.

You should print this and put it on your wall because this is a beautiful TPS setup.

My TPS setup contains three core components:

  • Strong trend – You see how price consistently moved higher, making higher highs and higher lows over time? That’s a clear trend.
  • Chart pattern – At some point, shares take a break from the constant upward trajectory. It’s there I look for consolidation of price to form a pattern. Using the highs and lows of the candlesticks, I drew orange trendlines that converge on one another
  • Squeeze – Trading is all about timing. A great trade at the wrong time is the same as a losing trade. That’s why I use the squeeze indicator (red dots at the bottom) to signal when I should enter the trade.

The only knock against this stock is the momentum.

At the bottom, the histogram starts to pop out below the red dots. That signals some negative momentum.

However, I tend to give that less credence than normal due to the holidays and light volume.

So, this is definitely a candidate for Monday morning’s Double Down selection.

Let’s see who else is up on the docket.

JinkoSolar (JKS) – 16% Short Float

SPWR lit up screens and stuffed wallets the last few weeks. And while I love that stock, I happen to like the current setup in JinkoSolar.

JKS Daily Chart

You see, SPWR has no setup on the daily chart.

JKS does.

This makes it a great candidate for a swing trade in my Weekly Money Multiplier portfolio.

With the daily chart TPS setup, this stock needs a few weeks if not a month to play out.

So, I might look at options all the way into the January cycle.

One thing I want to note – I’d like to see the stock pull back to near $65 for my entry. That puts it right in line with the moving averages where I like to enter my TPS trades.

Smile Direct (SDC) – 35% Short Float

Last up on the docket is a slightly cheaper stock.

SDC garners a hefty short-float and only recently started breaking out.

SDC 78-Minute Chart

Note the stair step pattern that formed on the 78-minute chart. The series of higher lows in the current chart pattern is quite pronounced. That could mean a breakout early next week.

Which will I choose?

That right is reserved for Double Down members.

They get access to my trading plan before the market opens Monday morning.

You still have time to sign up before the next trade alert goes out.

Click here to access my Double Down trades.

Author:Nathan Bear

Although Nathan Bear has made options trades that resulted in over 1,000% profit, he’s “only made a few” he says wryly! Nathan is one of the best options traders there is. Period. His unique approach incorporating his adaptive 3-step “TPS” trading strategy, has so far brought Nate well over $2 million in realized trading profits.

Nate is a down to earth trader who now imparts his simple trading methods and relaxed approach to his trading subscribers to help give them the keys to trading success.

 

I just reset my LottoX trading account…

*Results like this are not typical. But I’ll take them.

*See disclaimer below

The reason?

I don’t like to take on large positions, and I don’t take large hits. I’d rather take a small amount of money and grow it. Once I achieve my goals, I take some profits off, and start again.

Believe it or not, this “small-timer” strategy has helped me make seven-figures.

And it might be something you want to take a look at.

Because I’m here to tell you that it is possible to rake in the dough, build massive wealth, without having to stress over taking massive positions.

Why a reset

Think of a person who has one small account worth $1,000.

They want to grow it as best they can.

But one bad trade could ruin the entire account.

Now, what if that same person split that $1,000 into two accounts.

All of a sudden, they can blow up one account and still have another to work with.

That’s kind of what resetting your account does.

It locks in gains and turns you back to your fundamentals.

You see, most major losses come from overtrading at the wrong time.

Overtrading happens to all of us. It’s how we deal with it that counts.

The first step is to recognize it. That means looking for any of the following:

  • Increases in trade size
  • More trades
  • Declining win-rate
  • Spending more time in front of the charts

I always recommend traders keep a journal. It doesn’t just help you find your strengths and weaknesses but gives you a chance to remove yourself from the trade and be an objective witness.

Just that little bit of reprieve can make all the difference in the world.

Markets can change

Not every trade is a winner. That’s something you learn to accept over time.

And even the best ones aren’t always home runs.

When new members join LottoX, one of the first things we do is reset expectations.

As a full-time trader who’s been at it for over a decade, I still learn things.

August was one of my best months ever.

September was pretty good.

But early in October things turned sour. And dragged through part of November.

Nothing was wrong with my setups. Yet, none of them seemed to work out.

In one of my worst drawdowns, I lost $80,000.

That kind of hit doesn’t just hurt the account, it affects you psychologically.

Yet, I also knew that things would turn around eventually.

It put me in a tough position where I needed to be prepared for the turn but also needed to survive until then.

Resetting is about survival

Let me give you an example from LottoX.

During the weeks leading into the election, I lost 80% of my trades.

Square (SQ) was a perfect example.

The chart was brilliant and all it did was fall apart on me.

SQ 78-Minute Chart

Now imagine this happening a couple of dozen times over a matter of weeks and you’ll get the picture of what I was facing.

That’s when I decided to take money out of my accounts and pull them back to $50,000 a piece.

At the same time, I reduced my trade size and scaled back on the number of trades I took each day.

For most of us, it’s not easy to simply stop overtrading.

That’s where resetting the account comes in.

It’s a physical representation of what you’re mentally trying to do.

When you limit the funds in your account, you stop thinking gains in terms of dollar amounts. Rather, you look at them from a percentage standpoint.

That focuses you on making the right decisions instead of trying to win the most money.

Consider this – I doubled that account and gained $50,000. That doesn’t cover the drawdown I took.

But, doubling any account is an accomplishment.

And sometimes, that’s all it takes.

After a series of bad beats, the best thing to get you going again is to just get a win under your belt, and then another.

That’s much easier when you aren’t as worried about draining your account.

It starts with one winning trade

When you struggle to find success, one winning trade can do wonders.

And look, sometimes you need a kickstart.

That’s where LottoX comes in.

You learn some of the same techniques I used to turn $38,000 into $2,000,0000.

Do yourself a favor and join LottoX today.

 

Author:Nathan Bear

Although Nathan Bear has made options trades that resulted in over 1,000% profit, he’s “only made a few” he says wryly! Nathan is one of the best options traders there is. Period. His unique approach incorporating his adaptive 3-step “TPS” trading strategy, has so far brought Nate well over $2 million in realized trading profits.

Nate is a down to earth trader who now imparts his simple trading methods and relaxed approach to his trading subscribers to help give them the keys to trading success.

 

No other concept helped me profit as a trader than the short-squeeze.

It’s like short-sellers don’t realize who they’re dealing with…

I’m Nathan Mother Loving Bear!

They keep betting against stocks near their highs thinking ‘Gee, this is so overbought, let’s bet against it.’

WRONG!

If you want to lose money, then follow those shmos.

For those of you who enjoy success, I want to teach you how to use short-squeezes to smash these short-sellers in the face.

If they want to bet against clearly bullish setups, they don’t deserve their money.

So let’s help them part with it, shall we?

The glorious short squeeze

You might think you know the short-squeeze.

But it goes so much deeper than most people realize.

This is one of those times where when you win, someone else is definitely losing.

Sorry kid

You see, you’re taking the exact opposite side of a trade from someone, hoping they give up.

Because when they cry uncle, that’s when you hit pay-dirt.

The concept is relatively simple.

Traders that bet against a stock do it by borrowing shares on margin from their broker. They sell these shares, paying a small fee while the trade is open.

When the stock goes down, they buy back the shares and hand them back to the broker less the fees.

It’s kind of like a legalized loan shark, just no busted kneecaps.

When stocks go against the trader, they lose as prices rise.

However, they can lose way more than they have in their bank account.

See, when you buy a stock, shares can go to zero and you lose your investment.

Shorting a stock, on the other hand, could lead to infinite losses (in theory) because you never know how high a stock might go.

Couple that with traders using leverage (borrowing as much as 4x the amount) and you can see how losses get out of control quickly.

Brokers aren’t stupid. At some point they cut off the traders. They force them to close out their trades and cut their losses.

When you own shares of stock you sell them to close out the trade.

Short-sellers buy the stock back to close out the trade.

And here’s where the fun comes in.

If enough short-sellers start covering positions, it drives prices up quickly. That forces more traders to cover their shorts, inducing more buying.

Pretty soon you get a cascade of buy orders that send shares up violently.

Now, imagine you got in just before takeoff. That’s what I do in Weekly Money Multiplier.

And I’ll give you a taste of that here.

Short squeeze candidates

You’ll come across a lot of terms related to shorting or short floats or short ratio.

Here’s the one that matters most.

Take the total shares currently sold short and divide it by the total number of shares available for trading.

This ratio tells you how many shares of stock are used to bet against the company compared to how many are currently trading.

The higher the percentage, the greater the chance for a short squeeze.

My preference is for anything that has a 15% ratio or higher. Anything above 30% is ideal.

You find high ratios with stocks that are extremely beaten down. These are companies like Macy’s and other retailers that are on the verge of bankruptcy. These are the companies that I want to trade.

I’m looking for companies that are near recent or all-time highs that carry a high ratio. These are the ones with strong bullish trends that no one in their right mind should be shorting.

And yet there they sit.

Take Stitch Fix (SFIX) for example.

I pounded the table for the last few weeks stating that the stock has the potential to rip higher.

And what did it do this week?

You be the judge.

SFIX Daily Chart

Combining short floats with my TPS Setups, I design trades that don’t just work for me but pack an extra punch.

Make every trade count for something

I get it.

You trade around for years, skipping from indicator to indicator, hoping to find that magic bullet.

I did the same thing for nearly a decade.

Working with RagingBull, I honed my skills and became a successful trader in my own right, turning my $38,000 account into over $2,000,000.

Stop wasting your time buying books and learn how to REALLY trade the markets.

Join Weekly Money Multiplier Today.

 

Author:Nathan Bear

Although Nathan Bear has made options trades that resulted in over 1,000% profit, he’s “only made a few” he says wryly! Nathan is one of the best options traders there is. Period. His unique approach incorporating his adaptive 3-step “TPS” trading strategy, has so far brought Nate well over $2 million in realized trading profits.

Nate is a down to earth trader who now imparts his simple trading methods and relaxed approach to his trading subscribers to help give them the keys to trading success.