How to trade a pump and dump (the right way)
Who's ready for the long weekend?
This guy.
And what a way to end the week. It was a little surprising that the market sold off today. I thought today would be boring and bullish like it normally is. That was my mistake today - but we don't trade what we think is going to happen. We trade what we see. And we had to address the sell-off.
The last couple of weeks, I've been hammering home what you get when you join our lovely family here. You get me. And I know more about trading than most people.
Yesterday, I showed you how to trade an IPO with $BSP. We lit it up. Everything I was taught about how to trade them panned out for a really nice trade.
Fast forward to today.
About a week and a half ago, I gave you the stock $SDOT. I explained how it's a reverse stock pump and dump that could get squeezed. Last Friday, it was a $10 stock. It ripped to $17, gave us a Fo-Sho-Bro and a VWAP break, and we caught a fantastic 70% trade.
I told you then that it wasn't done. Some people couldn't compute why a "piece of garbage" would go up. The answer is simple: because it's a pump and dump. When they take the liquidity away, it gets squeezed.
But remember: we don't call them pump and dumps because it rhymes.
The dump always comes.
And if you get your timing wrong, you're going to get crushed. Today, the stock that was $10 last Friday went over $100. Do you think this is some legit company? No. It's a pump and dump.
And today, we waited for the dump. You don't have to pick the top. When they roll over and die, they go to zero. We got an entry at $90. The stock is at $48 now.
This is one trade. A 50-point move.
Welcome to trading with Kenny Glick, Solid Jello, and the Hit the Bid crew. We know how to do everything. We've seen it all. We navigate this market better than anybody else because we do it algorithmically. We take 30 years of knowledge, put it into the algo, and we're unstoppable.
It's okay if you missed $SDOT, because we also had a profitable Fo-Sho-Bro VWAP break on BlackBerry today.
This is why I love this market. Not because it goes up, but because there's volatility.
I want to make money on the way up, sell, and then have the skill to go short and make more money on the way down than we made on the way up.
That's perfection. That's why you're with us. We trade both sides.
Watch the video to see how today unfolded:
Have a great weekend, America. Enjoy the time off. Earnings season is right around the corner.
If you’re already inside the room, I’ll see you tomorrow.
If you’re not in here yet, here’s the link to join us.
Kenny Glick | Founder, Hit The Bid
P.S. A 50-point move on a pump and dump, a perfect IPO trade, and a win on BlackBerry. To see exactly how we did it today, make sure to watch the recap. I'd rather trade, make money, go to cash, and live my life. If you want to do the same, get in the room.
