Imagine u're short 100K shares on a lowfloat stock that can rip a few cents on just 10K share orders.

Ur avg is $3.00 and the stock rips to $4.00.

There's no way in hell u're covering that high (the slippage will be massive, not to mention u're scared to cover at the top).
so what do u do?

u think to yourself "ok as soon as this stock pulls back im downsizing or bailing".

So u place cover orders at let's say $3.50, hoping they get filled as the stock pulls.

Remember, u're trading size, so u cant just market cover. u have to wait on the bid.
well guess what:

u're not the only shortseller trapped.

at least 20 other guys are also stuck with monster size & have the same exit plan as u (u'll be surprised at how many guys who trade ridiculous size on these LFs are not even on twitter).

So they all place their bids.
the manipulators KNOW this.

they know who is trapped, what their avg price is, and at what price they'll start getting margin called etc.

it's not hard to get that info (unethically of course) if u know the right ppl.

yes, wall st is dirty like that.

So guess what they do
those buy orders u & the other bent shorts have spread out and sitting around $3.50, $3.30, $3.10 etc to plan ur exits, the manipulators are thinking "oh that's cute". so they put HUGE bids at $3.50 to make sure u & the other bent shorts never get filled on the pullback from $4.
So the stock pullsback & just stalls around $3.50 . This forms a flag pattern, attracting more FOMO bulls.

Game over.

Now the shorts are bent. They cant get out. That's how squeezes begin. That's how winter comes for shortsellers.

Learn how the game works.

#BearTipOfTheDay

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More from @team3dstocks

8 Mar
That is exactly how u play low float setups to the long side.

You wait for the decisive level to break after 10am (shorts are now the "bagholders"), then u go long on the pullback ONLY if it holds (meaning the manipulators are purposely preventing shorts from breaking even).
The reason it's important to WAIT for the pullback to hold ABOVE the decisive price b4 longing is b/c sometimes they just breach the level to trigger stops, then dump their long position into the stopouts. u DONT want to long that b/c they're no longer committed to prop the stock
Here are 2 pictures to illustrate this, for my "visual learning" motherfuckers.

Picture B sums up the anatomy of and every other low float black swan in the last 10+ years

Picture A is just an exit strategy (break of decisive price just to dump shares).
Read 5 tweets
25 Feb
$SCKT 84% ADF score.

keep an eye on $19.09 (vwap from feb 16) and $14.20 (vwap from feb 17). Use those areas as risk levels and to gauge heaviness.
$SCKT lol notice what happened each time it got close to feb 16's vwap ( $19.09 area). This is no coincidence. Stop thinking that only daily highs/lows act as resistance. Past days' vwaps are even MORE important. Gave u guys this edge YEARS ago. respek it. Image
I can give u a gazillion examples of this, but dont take my word for it. Backtest it yourself (the effectiveness increases as long as the stock's ADF score is high). Example why do u think $BBIG (96% adf score) topped out here on Monday? 😉 RESPEK previous days' vwaps!! Image
Read 5 tweets
24 Feb
$TSLA Funny how the market never changes... since human psychology doesnt. Notice the bagging of all the Put chasers from yesterday and monday.. same MM tactic I always tweet about. Gotta know where the bagholders/crowd are at all time & play the opposite side. Rinse & repeat
$TSLA Assuming no new catalyst, the next leg down will resume once the Put buyers’ premiums get wrecked (from this bounce), and once dumb money starts chasing Calls again at the top. Remember, it’s ALL about bagholders💼. Tmr we’ll find out who got bagged today & plan from there.
That’s the edge in daytrading: capitalizing off the emotions of LT investors.

-We can be nimble & adjust on a day to day basis, flipping long vs short, they cant

-We get to see their Poker hands before making our bets, they cant.

CAPITALIZE on this.

#beartipoftheday
Read 4 tweets
18 Feb
That's why i cant stand the "long as u close green, it's fine" mentality. It's the WORST advice ever. Every account has a MINIMUM amount of $ that u must make per trade. It's pure math. Ur avg win doesnt have to be massive, but it MUST be big enough to cover fees & future losses.
So there is no such thing as "green is good" or "a win is a win". That mentality will make u take profits WAY too fast each time u're green, even when there's still room until ur target. Green is only good if that green is big enough relative to ur win rate, & risk/reward (TE)
As long as the stock still has room to move, and ur target is reasonable (not a greedy target), LET the trade play out. Worst that can happen is the stock reverses & u get stopped out. whoo-pde-fucking-doo. Cry me a river. welcome to trading, where shit happens from time to time.
Read 4 tweets
17 Feb
U should set ur max loss per trade (1R) based on % of ur account. In short, ask urself "what FIXED amount am i willing to lose back to back b4 my acct becomes untradeable".

Plan 4 the worst, so give urself a 1R that will let u lose at LEAST 20 trades in a row before blowing up. Image
So example if u have a $50K acct, u can only lose $25K to be under PDT.

So $25K / 20 = a 1R of $1250.

That means if u are a cursed fuck & lose every single trade 1 month, it will take 20 back to back losses to put u under PDT. and that's still VERY aggressive in my opinion.
For more conservative traders I recommend making room for at least 30-40 consec losses. Now we know that wont happen unless u're an absolute dumb fuck (or cursed by Odin, Osiris AND Zeus combined), but knowing that u have such a huge margin of error will give u peace of mind.
Read 4 tweets
26 Jan
1st figure out how delta hedging works. $GME was nothing new, it was just $TSLA on a smaller scale.

Any stock with

1) weekly options
2) high short%
3) low float

is candidate for a "gamma squeeze", since u now have 3x the buyers instead of 2x like in a regular shortsqueeze
in a regular shortsqueeze the 2 main buyers are the bent shorts & the breakout chasers (double the demand)

In a gamma squeeze, u have 3 main buyers: The shorts, the breakout chasers, AND the option sellers (who are delta hedging). So it's pretty much a shortsqueeze on cocaine
So as long as someone (or a group of ppl like robinhooders) is reckless enough to buy a ton of OTM calls, near friday, on a stock w/ those 3 criteria, u have the recipe for a squeeze. They'll probably attempt another squeeze soon, with a different stock that has those 3 criteria
Read 4 tweets

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