Thread by @team3dstocks

There are many ways to know that u're not betting against the house (smart money). The simplest one is to use common sense. Example if a low float trash stock gaps up 100% on BS news, with no pullback, & a ton of buying volume comes in at the very TOP, who do u think is buying?

https://twitter.com/adam83521/status/1567317984707846144

You think the smartest people in the market see a piece of shit stock literally one foot away from getting delisted gap up 100% on crap news and think "yeah this is a great buy. Dear broker, fill me in at the very top please" ?

Or let's use large caps / options as an example. Do u think the smartest money in the market see a LC stock that's been selling off for multiple days in a row out of pure irrational and think "yeah, that's a great place to start shorting or exit my long position" ?

In short, the big money are contrarians. They buy when everyone is panic selling. And they short or sell when everyone is FOMO buying. And it's not because they WANT to be, it's because they HAVE to be. You don't fill a whale size position in 1 minute. The slippage will kill u

If you're a multi billionaire or centimillionaire, the only way you'll fill a MASSIVE position with minimum slippage is if enough idiots are simultaneously chasing the offer or bid. And this only happens at emotional extremes (top of squeezes or bottom of panic selloffs)

Conclusion: look for emotional extremes. Look for panic selloffs with massive volume (the 🏠 is on the other side buying stock or shorting puts), or FOMO squeezes with massive volume (the 🏠 is on the other side shorting the stock or selling calls)

#BearTipOfTheDay
#ThuFriRule