What’s up, everyone? All right. So the topic of today’s episode is The Banana Squeeze. If you haven’t heard of the banana squeeze, this is technical set up. Every day traders should know about the banana squeeze.
Learn More About the Banana Squeeze Here!
You may have even traded a banana squeeze, but you didn’t realize it. All right. Doing it doesn’t look like this. It looks like this.
That’s the banana squeeze. You’re looking for a stock going straight up. So here’s the deal. When I was first getting started, training and I just finished teaching this class to Warrior Pro students. And so I want to come on here and share it with you. So when I first started trading, I did not trade banana squeezes well at all.
I struggled with them. These are stocks that go bananas. They go absolutely crazy. And so Drew, this is the stock back in 2016 And even at that time I had a great year in 2016 but I was not able to capitalize on the really fast moving price action of a stock experiencing a banana squeeze. It was too volatile.
I felt like I couldn’t manage my risk. And so I was just focusing on trading stocks that weren’t quite that crazy. So more of the stocks up 20 to 30% maybe 50% but not stocks going up 700, 800, 1000% or more. I just didn’t feel like I could manage risk on them and boy things have changed because today those are the stocks that I make the most on.
And what I’m going to show you guys, I’m actually going to show you the live trading archive of two banana squeezes that I traded in one day and made over $177,000 trading those two as they were squeezing up that was real money. And I have it all recorded and I have it recorded. So you can see my order entry window.
You can see the way of scaling into the trade, the way I’m stealing out of the trade. So I have now learned that these are types of sets that I can make the most on. Now hold up, hold up. Now, before you get excited about the banana squeeze on me, remind you that my results are not typical. Trading is risky, and most beginner traders do lose money.
OK, so we make no guarantees that you as a member of warrior or you as a trader out there in the world will do any better or any worse traders than as a whole. Trading is risky, but there’s definitely something to learn about the banana schools. And so what I want to do is I want to give you an opportunity to watch these two live trading archives and to listen to my commentary.
And during this episode, what I’m going to do is I’m going to share with you the transformation that I made in my own trading to go from a place where to begin with, I was too scared to trade these really volatile stocks . I was too hesitant. You know, I saw the opportunity, but I was just too afraid of screwing it up.
So I didn’t trade them at all. Right. And then to the place where I’m at now, where I trade them so slowly I can get in, I can get out, I can be super aggressive, super active. That’s flow state. And if you aspire to get there, the only way you’re going to get there is from taking steps in that direction.
And so you got to start by getting a better understanding of these banana squeeze setups, how they work, what the characteristics of them are, the levels that they trade around, and then once you start to get that dialed in, you want to start practicing trading in a simulator. Of course, test the water, see if you can get comfortable, and then you start to transition to trading them with real money.
And it does feel like you’re taking a leap sometimes with these stocks because they’re so volatile. But I promise you, these are the right type of stocks to be looking at because these are they have contributed far and away to my process being able to get good at these types of stocks for a long time. I just left them alone and I was leaving a lot on the table.
Now, the only problem is if you get caught on the wrong side of the banana squeeze now now that’s where things get scary. You get caught on the wrong side of the man squeeze. It’s not good. All right. That’s when we’ve got a problem. So you don’t want to get squeeze used in the banana schools. And, boy, I’ve seen and we’re going to talk about it during sex.
So we’re going to talk about what happens when traders get caught to the short side, because there are some traders that have gotten absolutely destroyed. I’m going to share with you a story of a trader who lost over $14 million on one particular Kananaskis. It was epic and so you don’t want to underestimate how strong these can be. And you don’t want to underestimate what happens when market makers become imbalanced on their position, because that’s when you start to see the bids just all of a sudden stack up big bids and asked the offers are gone.
So you take and bid, take a big you see that pattern. And we’ve talked about this a lot traders, Morrisons you know what I’m talking about here? These are the games the market makers play. And when these stocks start to open up and they go into a halt in this step and they go higher than skip and they go higher that’s a banana squeeze and that’s an algo squeeze, there is an opportunity to capitalize on that volatility.
So what I want to do is I want to invite you to actually watch the class that I just taught all of our Warrior Pro students. I just taught it today just a few minutes ago. I just finished it, and I’m going to give you the link right down here. You can jump over there and you can stream that class right now, today.
So jump over there, stream it. I hope you guys love it. You’re going to learn a lot about the banana squeeze. I want you to remember, don’t get caught on the wrong side. Of Man Squeeze. It’s not good. All right. So check out the link. I’m going to post it down the description probably right here. I’ll post a little pop up where you can see where you can stream the video so you can stream the class as I just taught it.
And I hope you guys will enjoy it. All right. Keep studying. Remember, trading is risky. The best thing you can do is equip yourself with education. Study, study, study, and protect yourself by practicing in a simulator before you put real money on the line. All right. Learn more about the dance quiz. Check out that link right there. Stream class today.
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