Unless you’ve been living under a rock, you’ve likely heard about GameStop’s frenzy.
If you haven’t, don’t worry — I’ll bring you up to speed.
And if you have been following this crazy drama…
I’ll tell you how you could have capitalized on this opportunity…
And how to do it in the future when a similar setup appears.
After hitting an all-time low of $2.80 in April of 2020…
GameStop (ticker symbol GME) opened today at $301…
And it’s currently at $347 at the time of this writing.
So how did this happen?
Some context first:
GME had over 138% of its float shares sold short, making it the most shorted stock in the US market.
Let’s break that down further…
Float shares are the number of shares available for trading of a particular stock.
So, well over 100% of these shares are sold short.
This basically means Wall Street is bearish on the stock.
They expect (and want) GME’s value to fall.
What’s more, Citron Research came out with a report calling for the stock to be shorted, and even saying they took a short position themselves.
Normally, the stock would tank and go their way.
But the conditions were more than favorable for a heavy short squeeze…
Now here’s where sh** hit the fan:
A bunch of youngsters in a Reddit subforum called “wallstreetbets” – which is followed now by 3.4 million people (or as they call themselves, “degenerates”) – were ready to take advantage of the situation.
These guys mostly do what they call “YOLO” trading.
[Definition of YOLO: You Only Live Once…
Meaning they put all the money in their account into one trade or call option and either have huge gains or devastating losses.]
So these “degenerates” took a look at what was going on around GameStop’s stock and decided to become bear slayers.
They coordinated a guerrilla-like strike against short sellers of the GME ticker.
Thousands of these bear slayers started pouring their entire trading capital into the stock.
By buying heavily shorted stocks en masse, the stock’s price skyrocketed.
Short-sellers, in turn, were suffering staggering losses.
Eventually, the hedge funds were squeezed out of their position, forced to take unprecedented MASSIVE losses.
While (for a nice change) many retail traders have managed to bring home some thick stacks of trading profits.
Kinda funny if you ask me…
To think that a group of people in a glorified forum just cost big Wall Street billions in losses.
Not only funny but crazy and unbelievable, a story that the world of trading will never forget…
And it’s a story that carries a big lesson with it:
Where there’s volume, there’s going to be a big move.
That’s the sheer power of Volume.
And the best way to harness the power of volume is taught in this special on-demand training:
This is not the same stock market it was 10 years ago.
Heck, it’s not the same market as 1 year ago.
Things like this will continue to happen.
And if you want to take advantage of them, you need to be ready.
Check out the free training right here and be prepared to strike the next time the iron is blazing hot!