Replies to post #1839 on Triple 000 and Sub-penny Chart Plays

[trader53]

TTDZ "Short Squeeze" coming soon >

TTDZ 0.0004

> What I look for, for a possible "Short Squeeze".

1. I look at the most recent "key support".
> May 12th at 0.001

2. I take 50% of that number.
> 50% of 0.001 = 0.0005

3. I wait to see the stock reach that number 0.0005

4. It is at this point, that the "shorts" are getting nervous,
and want to start to cover their "short positions". They need to return the shares that they borrowed, and they want to return cheap shares, because that's how they make their money.

The "shorts" sold the shares up at the high price, and want to return them at the lowest price they can buy them at.

Right now, they are trying to buy the shares at these low levels, before the price starts to go up. They look to buy shares under "key supports", because they know that that is where smart traders begin to buy, and the "shorts" don't want to get "squeezed".

This is how I calculate when a "short squeeze" is coming.





The Basics of Shorting Stock

I own 1,000,000 shares of TTDZ at 0.007 per share.

You believe the stock price of TTDZ is grossly overvalued
and is going to crash sometime soon.

You are so convinced that the stock will crash,
you come to me, and ask to borrow my 1,000,000 shares of TTDZ
and sell them at the current market price of 0.007 for $7,000.

I agree to lend you my shares
as long as you pay me back 1,000,000 shares of TTDZ
at some point in the future.

You take the 1,000,000 borrowed shares,
sell them for $7,000 and pocket the money
(1,000,000 shares x 0.007 per share = $7,000).

Nine weeks later, the price of TTDZ stock falls
to 0.0005 per share.

You call your broker and tell him to buy 1,000,000 shares of TTDZ stock, at the new price of 0.0005 per share.
You pay him the $500 (1,000,000 shares x 0.0005 per share = $500).

A few days later, you pick up the shares of TTDZ
and bring them by my office.

"Here are the 1,000,000 shares I borrowed,"
you say as you put them on my desk.

Do you see what happened?

You borrowed my 1,000,000 shares of TTDZ,
and sold them for $7,000.

Nine weeks later, when TTDZ fell to 0.0005 per share,
you repurchased those 1,000,000 shares for $500,
and gave them back to me.

In the mean time, you pocketed the difference of $6,500.