The meteoric rally in shares of video game retailer GameStop (NYSE:GME) has been stunning. Maybe the most stunning thing I’ve ever seen on Wall Street. GME stock was trading at $15 back at the start of December. The GME stock price today clocks in around $350 (and climbing) — up a jaw-dropping 23X in less than two months. While there are a lot of lessons to be learned from GameStop’s stock surge, here’s the most important one: Short-squeeze stocks are a great way to score 10X gains in the market.
For those new to short squeezes, here’s the quick-and-dirty version:
Professional investors who like shorting stocks (and there are a lot of them) must borrow shares, which they then must buy back at a lower price to pocket the difference. Sometimes, though, the trade goes the other way. The stock rises, and shorts are forced to cover at a loss. This injects more buying power into the security, causing the price to rise and forcing more short sellers to cover, thus powering the stock price even higher.
That’s a short squeeze.
These aren’t the first short squeezes to ever happen. They won’t be the last. The big lesson is that if you’re looking to a make a lot of money quickly in the stock market, going long heavily shorted stocks with short-squeeze potential is a pretty good strategy. GME, IRBT, AMC, EXPR and KOSS stock are all great examples of this.
But there’s an even better way to make 10X your money in the stock market …
And it’s what powers InvestorPlace’s bold (and crazy successful) financial newsletter, The Daily 10X Stock Report.
An Unrivaled Track Record of HUGE Gains
Launched in 2020, The Daily 10X Stock Report is aimed at delivering to your inbox, every single day, a stock pick that could rise by at least 10X. In less than a year, we have already uncovered multiple 10X winners with startling accuracy.
We told investors about hydrogen leader Plug Power (NASDAQ:PLUG) stock at $4 … before it soared to $70.
We told investors about EV maker Nio (NYSE:NIO) stock at $4, too, before it roared to $60.
And we told investors about psychedelics medicine pioneer MindMedicine (OTCMKTS:MMEDF) at 30 cents … before it skyrocketed to nearly $5.
We also told readers early on about breakout stocks like Cardlytics (NASDAQ:CDLX), LivePerson (NASDAQ:LPSN), Izea Worldwide (NASDAQ:IZEA), Digital Turbine (NASDAQ:APPS), Arcimoto (NASDAQ:FUV), ElectraMeccanica (NASDAQ:SOLO), Farfetch (NASDAQ:FTCH), Zomedica (NYSE:ZOM), Stitch Fix (NASDAQ:SFIX), 3D Systems (NYSE:DDD) and many more.
In grand total, The Daily 10X Stock Report has delivered to readers 70 unique stock picks that have soared at least 100% — and 13 that have soared more than 500%.
All in less than eight months.
The results speak volumes … The Daily 10X Stock Report may be the single best way for investors to score 10X gains in the stock market.
What’s the secret?
A Simple Formula
The best part about The Daily 10X is that there are no tricks.
It’s not a magic show. It’s a financial research product. And as a financial research product, The Daily 10X relies on a simple, tried-and-true formula to consistently score readers enormous gains.
That process is as follows:
- Identify investment megatrends that are unstoppable and will redefine how the world works.
- Within those megatrends, find the most relentlessly innovative companies that will dominate the megatrend at scale.
Megatrends? Innovation? What does all that mean? Let’s break it down.
Investing in Megatrends
Step one in The Daily 10X investment process: Identify investment megatrends that are unstoppable and will redefine how the world works.
Think about the rise of e-commerce, the shift toward digital advertising, or the spread of mobile phones.
These are investment megatrends that redefined how the world worked over the past two decades. The path wasn’t always smooth. Between 2000 and 2020, you had the dot-com bubble, the 9/11 attacks, the Iraq War, the Great Financial Crisis, a U.S.-China trade war, a global pandemic and much more.
Yet, through it all, global e-commerce sales rose by 1,269% from 2000 to 2020. North America digital ad sales rose by 1,954%. Mobile phone sales rose by 406%. Sure, these megatrends were slowed somewhat by external noise. But not stopped. And that’s the whole point. By investing in secular megatrends, you are investing in unstoppable forces.
At The Daily 10X Stock Report, we invest in these unstoppable forces.
But not the same old investment megatrends that have already come to life and changed the world. No. We invest in the new, emerging investment megatrends before they come to life and disrupt the world. At The Daily 10X, we get in the on ground floor of the world’s biggest investment opportunities.
I’m talking self-driving, which is why our readers scored triple-digit gains with Luminar (NASDAQ:LAZR). I’m talking space exploration, which is why our readers scored triple-digit gains with Virgin Galactic (NASDAQ:SPCE). I’m talking plant foods, which is why our readers scored triple-digit gains with The Very Good Food Company (OTCMKTS:VRYYF). I’m talking online sports betting, influencer marketing, streaming TV, solar energy, hydrogen power, solid-state batteries, artificial intelligence, Big Data and much more.
We talk about all these megatrends and more in The Daily 10X Stock Report.
But we don’t just talk about these megatrends. Simply identifying megatrends doesn’t score 10X gains. At The Daily 10X, we take go one step further and separate the wheat from the chaff in that megatrend to identify the best stocks to buy.
And that’s where step two comes into play.
Investing in Innovation
Step one in The Daily 10X investment process: Find the most relentlessly innovative companies that will dominate the megatrend at scale.
Emerging megatrends tend to attract new companies by the boatload, and being part of a megatrend isn’t enough to make a growth stock a long-term success. Indeed, most companies in emerging megatrends end up going bust — just look at the dot-com bubble!
You see, emerging megatrends eventually and inevitably grow up and mature. As they do, the markets consolidate around a few very strong players. The rest gets squeezed out of the market.
We understand this at the The Daily 10X Stock Report.
So, we don’t just identify investment megatrends. We identify the best companies in investment megatrends.
How do we do that?
By finding the most innovative companies in the space, because innovation enables companies to sustain big growth, develop competitive advantages and turn into market leaders. Among these growth stocks, you just may find the next Amazon, the next Facebook or the next Apple.
And that’s exactly what we do in The Daily 10X Stock Report.
We find the next Amazon. The next Facebook. The next Apple. Before anyone else does — and in so doing, secure our readers enormous gains.
Bottom Line on Short-Squeeze Stocks
The wild success of GME stock proves that short squeeze stocks are a solid way to score 10X gains in the stock market.
But it’s also risky. And like gambling, it has a low success rate that will probably keep you up at night.
That’s why The Daily 10X Stock Report is an even better way to score 10X gains in the stock market. It’s fundamentally based and therefore much less risky. And since it’s far-removed from gambling, it has a higher success rate. Which means you get to score huge gains while still sleeping at night.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.
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