Welcome back everyone! Today we're going to be talking about HKD Quite possibly the greatest short squeeze ever. Um, at least in my 17 years of trading Now It happened a while ago, but I Want to focus on this because it is. This trend has been repeating for almost a decade now and I want to talk about the dangers of shorting these squeezes as well as the opportunity of going long these squeezes and why they can literally change your account overnight. So that being said, everyone: I am lead trainer with stocks trade Tim Bowen Been trading for 17 years really? I was actually started out Short Selling and it was a different era back in 2006 up until about 2015.

So for about eight years the market was completely different. Air quotes. Every small cap stock would spike and die because back then it was extremely difficult to get borrows on a stock. Okay, now I'm going to talk a little bit about the mechanics of Short Selling and it might go over your head.

but I Want to focus I'm not going to get into the details because I've got a ton of other videos and I don't want this video to, you know, go on for half an hour. Okay, so if you don't know what borrowing a stock is or getting a locate or selling before you buy, head over to the channel bunch of videos for contacts. So going back to the history lesson 2006 to about 2015. Um, it was just very, very very difficult to ever get shares to borrow of these small cap stocks if you follow: Tim Sykes Which maybe you do You know he actually had like a a song about Elfs A-l-f-s-ss Okay, always look for shares to short so it always was.

For that first decade of my trading career, it was always just such a extreme effort and and and struggle to get a borrow to get a locate and there was just some limited supply and demand and you would go and you would go to this broker and sometimes they would have locates and then this broker would have it you would I Remember we would in the day trading Community to get these shares to borrow. We would change brokerage accounts every few months because you were chasing the borrows. As they say now back then you almost never got stuck in a short squeeze like HKD This stuck went from 18 to over 2 000 in the matter of a couple days. Okay, eighteen, two thousand dollars I Said two thousand percent.

Like ten thousand percent. Okay, eighteen dollars to over two thousand a share in the matter of a couple days. The reason that happened is because it wasn't pre-2016 anymore. Back then there was only a few people shorting these stocks.

so these short squeezes would still happen, but they were just much less explosive. You might have a stock that's squeezed up for 20 or 30 percent. Fast forward to 2016. still remember the very first stocks to trade video I Did a live trading webinar I'll always remember the day you can look up the date I don't remember the exact date but I always remember where I was in a studio recording this video and it was uh, Tcco.

Okay, low float stock much like HKD disaster company. but by now everyone could get locates on these stocks and Tcco went up a thousand percent before I ended the webinar at 9 45 a.m Okay, thousand percent from like 9.25 to like 9 45 And that was because now in that post 2016 World anyone can get barrels I mean well I don't not anyone if you're at Robinhood you can. If you're at Weeble you can't but if you look hard enough, there's 10 or 15 different Brokers out there that will allow you to borrow these stocks. Now you pay a pretty penny, but people think it's worth the risk.

Now the reason I bring up HKD is twofold. Number one: Okay, if you're considering shorting these stocks and I am not saying it's a bad thing. Okay, it is. It is a shorting crappy penny.

Stocks is a very reliable strategy, but the problem is if you do not have bulletproof risk management, if you can't stop out of the stock, you can be in something like HKD at 25 a share and if it goes to 2 000, you ain't gonna be there. Okay, it's going to be all over for you. Like you will get a margin call Your broker will force liquidate you. Okay, because if you break certain tiers on your buying power on your margin, they will just close the trade.

They don't need to ask you, they will not ask you. They will force you out of that trade and you'll be looking at your account down 80 90. I've seen people actually go negative in their brokerage accounts shorting these stocks. Okay, that's the danger.

Now it is, of course dangerous to go long stocks, but the worst possible thing you can do going long is go to zero. Okay, you can't go below zero like you can shorting stocks. And and again, Typically when you're going long, it takes you a very long time to breathe out your account. You get mixed up on something like HKD on the short side and it's all over.

Literally minutes. You get a margin call, forced to cover, bought in, it's called. You're out for a massive loss and you can't do a single thing about it. You can cry yourself to sleep.

That's about all you can do now. the trading strategy I teach and I focus on is identifying these short squeezes and I brought up HKD because it's the most massive one in the last year. But listen, this is not unique. We had Ahi today is June 19th 10 days ago Ahi a one dollar stock went up a thousand percent the same day and then gapped up another 30 the following: Monday I think of Top which is very similar to HKD HKD and Top were both.

uh, sketchy. Chinese IPOs Top: I think it was about a month ago epic Runner exploded a thousand percent plus Cxai an artificial intelligence play went from like two bucks to like nine bucks in one day and then gapped up to 63 dollars in pre-market Okay, that is what has changed and that is where I think the edge is now. Listen, can you lose money going long? These squeezes? Yes, nothing is guaranteed but the risk to reward and that's something. Maybe you've seen me talk about this on the podcast or other videos.

From 2006 to 2015, the the Rister reward was skewed towards the short side flat out from 2015 to today and I think for the next few years I think we got about a 10-year cycle for the next few years. Since 2016, the the risk reward is skewed towards the long side. Doesn't mean you can't make money going long or going short. Just like from 2016 to 2015, tons of traders made money going long.

But you have to like when I think of this and the analogy I give. it's like swimming up current. Okay, if you if you're if you were going long low price stocks 2016 2015, you were swimming up current. If you were shorting them, you were sitting on a tube floating Downstream Loving life.

Okay, since 2016. same thing If you're shorting these big Runners you're swimming Upstream If you're going long and you know how to short or know how to locate these short squeezes, you're floating on a tube down the stream. You still lose money, but the odds are over time, your gains are gonna massively exceed your losses. Now how do we identify the short Squeeze du jour? Because they come every single day.

Well, not every day, but three to four days a week. We get one that make these huge moves. Best way to do that is get on the Daily Income Treasure System. Webinars live every single day starting at 8 A.M Eastern Okay, you could jump on that 8 A.M Eastern Webinar 100 free and the whoever's not running that webinar whether it be me or Eric slake You or Matt or Rob Booker or Ben our tray.

we'll be going out over the gappers and we'll be like look, hey, look at the float on this thing. look at the news on this thing. You can be ready to recognize these and trade these. Same with the 10 30.

Same with the noon. Same with the you know, 9 P.m typically Matt Monaco does the 9 Pm. He calls it midnight madness. He's going to be going over those day two.

Huge Runners Because a lot of these stocks go truly parabolic on the second or the third day. So click that link below. Check out the Daily Income Tire System would love to see you on one of the webinars. Thank you.