How to Find a Short Squeeze… and 1 Costly Mistake to Avoid

We’re months removed from the legendary GameStop short squeeze, but I know for a fact it’s still on everyone’s mind. So I have a treat for you, guys… 

I’m going to show you the tools I use and teach you how to find the next short squeeze.

And, no, it doesn’t necessarily involve Reddit.

First thing’s first, though: You have to know how to trade a short squeeze before you go hunting for one.

And that includes knowing what not to do — something I think a lot of traders don’t get…. And that’s do NOT fall in love with these stocks. 

It’s easy to get excited when you find the next short squeeze on Reddit or Twitter. The initial catalyst is good, and can be a quick way to make some money. But a lot of times, people fall in love with these companies and stocks and keep hanging onto them. 

How to Find the Next Short Squeeze… and Trade It

Let’s use the latest and greatest as an example: Microvision Inc. (Nasdaq: MIVS).

Microvision is an American company that develops laser scanning technology for various uses. It was also the target of a recent “meme” squeeze, making it a prime example for us.

The short squeeze began on April 20. By April 27, the stock was up 177%. On April 30, as I filmed this premarket, it looked to open down over $4… That’s not a nice move.

So why did this happen? The short answer is this is just what generally happens in a short squeeze not named GameStop. They almost always make the round trip back down.

This is a heavily shorted stock. The move was manufactured almost exactly the same way as the GameStop Corp. (NYSE: GME) squeeze — through the options.

But what happens invariably is there’s late money coming in from trend-chasing investors. Then they get left holding the bag after the squeeze because they fell in love with the stock.

Don’t do that! It’s too dangerous to sit, so once you get the big move up, hand the bag off and move on. Make your money and look for the next squeeze, because there will be another one.

Check out our short video below to learn more about how to find the next short squeeze and get a closer look at the charts and tools I use.

Be sure to share your thoughts in the comments section below. 

And as always, send any trading questions to and stay ahead of the markets, especially these choppy ones, by subscribing to our YouTube channel.

P.S. What if traders could buy a stock at the close and sell it the very next morning for an overnight profit of 33.57%, 32.43% or even 60.60%? 

And this doesn’t just happen once in a blue moon, or even just once a month…

This kind of opportunity presents itself every single day!

Traders now have a chance at stacking up double and even triple-digit gains every week.

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