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Epi
@Epi
10Mo·

Question for the experienced traders among you:


Have you ever participated in a short squeeze? And if so, how do you recognize in real-time that it is over or will be over soon?


I think I'm in one at the moment and I'm wondering how long it will last. Thanks in advance.


$SMR

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18 Commentaires
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Jannic L.@Lainerja
10Mo
Nene that is not yet a shortsqueeze, is hald just well bought
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Epi@Epi
10Mo
@Lainerja Aha, and what makes you think that?
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FairValue@FairValue
10Mo
Use a dynamic SL or, if you have enough time and desire, try to estimate an end using the short interest ratio.
It would be rather difficult to do this in real time on an hourly basis, at least I am not aware of any really useful method 🤔
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Epi@Epi
10Mo
@FairValue I took my stake out after the first doubling. The rest is now continuing. +350% in a few days.
It's crazy to see such a short squeeze!
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Sparfuchs@Reinecke
10Mo
First of all, the share has to have a really high short ratio. $PBB was a good example of this at 17%. Now you have to buy really well just before the shorts expire so that the shorties can no longer get in - and then the Luzi takes off.
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Epi@Epi
10Mo
@Reinecke $SMR was about 27% short interest at the end of Feb and time to cover 6 days!
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Sparfuchs@Reinecke
10Mo
@Epi But then the movement may already come, because the shorties are now buying back.
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Epi@Epi
10Mo
@Reinecke Yes, I think the movement is coming from the coverings. The last news was ridiculously insignificant.
The only question is when the run will be over and how to recognize it beforehand?
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Sparfuchs@Reinecke
10Mo
@Epi then you have to keep an eye on the short rate.
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Epi@Epi
10Mo
@Reinecke Okay, getting current data is not trivial.
And when I have it, what do I do with it in your opinion?
So selling makes sense if the short free flow ratio falls from 27% to 20%? Or 15%? Or what does the theory say?
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Sparfuchs@Reinecke
10Mo
@Epi You can't do that mathematically unless you can process greed in a variable. I always follow my grandmother's example, cash in when it suits you and never look back.
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Epi@Epi
10Mo
@Reinecke If I do what your grandma does, why do I need to keep an eye on the short rate?
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Sparfuchs@Reinecke
10Mo
@Epi because you can recognize when the cashing out starts.
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Epi@Epi
10Mo
@Reinecke Good in this generality. But I can't mathematically determine the point according to your statement. How do I recognize in the short data that the cashing out has started?

I would really like to know. The price increase is almost frightening.
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Moritz@leveragegrinding
10Mo
dat is not trading. Dat is betting
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Epi@Epi
10Mo
@leveragegrinding Well, I have built up a position $SMR because I think the company has a future and is very favorable. I even recommended it here once as a 1000% chance for 2024. But then came the short squeeze. And now I'm sitting here with extreme upward volatility and looking for an exit strategy, as my medium-term price targets were reached within a few days.
What would you do in such a case?
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Soprano@Soprano
10Mo
@Epi Take the profit and just get out a stock with negative cash flow does not make 10x
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Epi@Epi
10Mo
@WarrenG Why not? There are enough examples. $GME
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