Correct me if I am wrong, but a short squeeze only works if ...

agreeable Hound_0795 : me too

Maddtrinity : same but I also feel like it's potentially a few people discreetly buying and selling to each other to push it down and cause panic sells. easy to make profits if you squeeze with someone else who has large capital in a coordinated effect to to maximize profits. especially since most government groups still can't grasp how the Internet works and how it can be used to circumvent the system. in the end they'll get a fine and we'll be left high and dry.

Kube : No, a short squeeze is caused from sellers covering their short positions, not buyers holding. If you want the price to go up, you need people buying this with MARKET orders. Even if you have a lot of buyers, if they want to buy lower, it'll drag the price down. You need to clear all those limit orders with market orders for the stock to go up. For a squeeze to happen, you want to see ALOT of short sellers covering their positions and they will typically do so with market orders. This is why you need to watch the short interest because if the % is low, then there's not really enough for a squeeze.

Typically when you get a rally, it goes until the bulls start to take profits and then bears will see that as an opportunity and take short positions and ride it down. When bears take profit and start cover, you get that initial rally/squeeze and then the bulls jump back in and continue the rally up until they start taking profits again to continue the cycle.

Maddtrinity Kube : right on, thank you for explaining it like that. definitely helps me a little more understand.

Kube Maddtrinity : No problem [Smile]. I started following this stock at 0.014 which would be $14 right now post split but did not enter and kept watching because if you look at the higher time frames, it's been in a downtrend for the past 3 years. Each rally was smaller than the previous one. You could trade those rallies sure but if you are investing and holding it then you want higher time frame to align with the direction of your trade.

I personally rather buy in when I see it breaking trend even if it means I have to buy in at a higher price. Otherwise, you are trying to guess the bottom and you keep buying on the dips trying to average down but it keeps dipping, you end up trying to catch a falling knife and when the bottom is set, your average cost could be much higher than the bottom price and potentially even the price that you could've gotten in at if you waited for confirmation for when the stock breaks out of the downward trend. This is for daytrading or swing trading because I don't think most are wanting to invest long term into this. If you want long-term exposure with crypto mining companies though I don't recommend it because of the volatility, your best and safest bet is to pick the sector leaders like MARA and RIOT. It's not the price of the stock that matters but the % growth.