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You saw how Gamestop (GME) and AMC Entertainment (AMC) stocks shoot up this week. You want to figure out how to get in on these kinds of stocks in the future. How do you do it?
This article will discuss five ways, among many, that you can look for potential winners like this. Of course, there is no guarantee that following these methods will always lead to a stock market winner. But it won’t hurt.
NASDAQ Short Interest Report
NASDAQ reports twice a month on the highest number of stocks that have been shorted. You can download that report and research the highest shortest stocks.
As this article in Nasdaq.com points out, the short interest in GME stock was 140% of the issued shares. That was unsustainable in the long run and a short squeeze ensued.
Short interest is defined as the number of days it takes short sellers on average to cover their short positions. If it is too high, the likelihood of a stock rising goes up since the short-sellers all have to buy back their borrowed shares at the same time.
