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• Easiest Money You’ll Ever Make 💰👀

Easiest Money You’ll Ever Make 💰👀

Roaring Kitty’s back.

He’s the guy who pioneered the Gamestop rally back in 2021 & he’s sent a tweet out for the first time since 2021

The Tweet? It was this.

Cue for a 270% rally in Gamestop.

And this is how we make our easy money.

These meme stocks are junk companies & have no business trading at their current stocks prices.

Even the management at these companies know it.

Why else would Gamestop frantically issue new shares as their stock price spikes out of nowhere with no logical fundamentals?

Think about it from their perspective.

Their sales are declining, they’re leaking cash & the cheapest money they can raise to keep going is flogging their junk shares to diamond handers while the hype is still here.

So what do we do?

We join the dark side.

We short them

Now you don’t want to mindlessly enter shorts positions with the power of meme at play. Shorts have unlimited downside & limited upside so they are more risky

You want to enter when the steam is running out & we’re ready for the drop.

How do you know it’s running out of steam?

I use one of my favourite indicators for short term trading - the EMA (exponential moving average).

It’s a great indicator for showing the moment on any instrument. The rule of thumb is if it’s trading above the EMA, the momentum is to the upside aka better to buy. If it’s trading below the EMA, it’s better to sell.

So you can see on my beautiful diagram that we get the break below the EMA at around $40. That’s my signal to enter. And that’s what I did. My average open price is $38 & average profit is currently 41%

How do you know when enough is enough & to get out of the meme stocks?

Well, I use the opposite approach & wait for a break above the EMA.

There’s two ways I like to cut trades using the EMA depending on your risk tolerance because don’t forget - these meme stocks can rally out of hours, in which case any stop losses you have can get blasted.

Anyway…

The first way (which is more conservative) is to just take your profits at the EMA, at the first sign of any upward momentum & secure your profits (or cut your losses depending on your entry)

The second way, which I use more often, is to set the stop just above the last break above the EMA. So to use the chart from earlier, I would set my stops…..

Depending on my entry.

The Gamestop price is a bit too risky to enter short right now in my opinion. But the reason I put this together is a) this strategy can be applied to any meme stocks or pump & dumps out there & b) to have you equipped for any meme frenzies in the future.

Don’t be a diamond hander bag holder for everyone else to get rich off.

PS If you want to find stocks with lots of short interest to either be a degenerate & buy now hoping for a short squeeze or keep eyes on for a pump that you can short I use this screener here

That’s all! See you same time next week 👋 

P.S Hit reply & let me know what you thought of this weeks newsletter. All feedback is welcomed ❤️