There’s an often forgotten strategy that has made millionaires in the past, when it comes to the stock market, signs of interest (or lack thereof) for any stock can guide regular investors into some of the best opportunities that most others leave behind due to the simple fact that they are less understood than the typical methods employed by retail investors. This strategy involves a contrarian, high-risk, and high-reward point of view.
[content-module:CompanyOverview|NASDAQ:SMCI]More specifically, this strategy is called riding up a short squeeze, which was at the heart of the so-called “Meme stock mania” that turned markets red hot during the cheap money and low interest rates era after the COVID-19 pandemic. The reason these stocks reached stratospheric valuations is simple: the short sellers were cornered into a forced position to close out and cut their losses.
