 Good morning, everyone. It's Tom Diesel here. I hope you guys had a great weekend today I'm just gonna go over one of the topic that haven't discussed before and So I think you know could be good idea just to go over it and also we have a pretty good example from Friday Yeah, I'm just gonna pull up the chart here the stock we me why I am I You know, it's kind of one of the blacks one stocks like, you know when parabolic in after hours We weren't the room since the morning that it was easy to borrow, you know stocks So chances are it's gonna, you know squeeze, you know More than than than you think and and so, you know, but so that's what's it's gonna be the topic for today Is I just want to explain in depth on how to To trade the ETB stock or the easy to borrow stocks But first of all, you know, what is ETB, right? What is the easy to borrow stocks because I got this questions a lot from the members asking, you know How can you know or how? How how how do you find that the stock is ETB? I mean The best way how to find out if the stock is easy to borrow or not Is to ask around right because I'm using trade zero and What when it comes to finding out if the stock is easy to borrow or not trade zero is not really the one that you should count on because For like trade zero usually you have to pay for everything, you know in in my experience I've seen a lot of stocks like I have never seen one. It was ETB On trade zero unless it's like Amazon or Apple or something even sometimes I have to pay for spy and Apple So, you know, that's just ridiculous. So if you want to find out if the stock is Easy to borrow or not. Don't count on TZ. Don't count on trade zero. Okay, you have to ask around, you know those like using cobra IB in Interactive brokers Cp centerpoint e-trade Thing or swim, you know, you know, like a lot of different brokers, right? But if it if all of those brokers that who's having The ETB stocks like if the stock is easy like if if the stock is easy to borrow in those brokers usually on IB and thing or swim if they have it for free that means everyone is having it So that's how you can find out. But what that? Easy to borrow means right, you know, it's pretty simple easy to borrow. That means you can short Any amount like any amount of shares you want without locating without paying for them. So basically it's free Right, so it's like pretty much the same on the long side that you just on a place your order and then just get in Instead of for on the short side if the stock is not easy to borrow you have to locate them first Whatever the amount and then based on that you can use that on the short side, right? But if it is easy Like easy to borrow you can short any amount you want as long as your account allows you to do so so so that's the general info about the easy to borrow stocks and so What is the edge on on the ETB stocks, right? Usually Usually what you know in my personal opinion? The edge is more for the long bias trader instead of for for for for for short sell and so I Would say here if you are long bias the easy to borrow stocks, it's gonna work better for you But it doesn't mean that there is no edge for a short side, right? There is an edge But you just have to wait for the back side to kind of trade it but you know a lot of times They don't happens that and you know often and so when when the first time kind of stock didn't move and we try to kind of Warn the guys that you probably should have avoided first you know And then just wait for the back side, but basically wait for the confirmation To be able to short the stock because Easy to borrow stocks they can move really and you know crazy And you know if if they have SSR on the move is even more powerful So you just have to be careful in that because the squeeze It's gonna be much more likely than you know, like the old-day fader right for the old-day fader Usually they just pop and then drop and also on the ETB stocks low floater SSR on Usually those stocks are the chat room, you know targets like pumpers are really interested in those So they can pump it to their members and alerting to them so, you know a stock could you know squeeze higher and and In in very short amount of time. That's usually the best stocks that They like to trade basically Yeah, so Back to the edge. So what is the edge trading the ETB stock, right? the edge I think here is on the long side and You know, but you know still You know, that's a potential long right, but you still have to time it, right? So timing is really important here Harry is a really good long bias trader and He did some great video on those and you can see his criterias are usually, you know The ETB SSR low floater hot chick of the day You know, if you have all those You know criterias combine and kind of fit into the setup Now you need to kind of develop a plan on how to trade them, right? So I'm not good with long. So I'm just you know Tell you guys or I'm all I'm trying to do here is Like if the stocks I don't want to short, right? Like I'm a short bias trader and I don't want to touch that so that means, you know It's could be an edge for long there, but since I'm not good with long So I'm not gonna mess with it But I know but I still want to learn the concepts how the stocks behaves so that I can avoid it you know in the future and The perfect example here, I'm gonna show it to you guys Let's just ignore the open here On the pre market Yeah, it's like this or Maybe and you know, it is the best time I mean the best way how to trade is on easy to borrow stocks Just avoid completely the pre market trading. I mean, it's it's just really doesn't make sense here if you know You're not chasing down here and but you know, there is some certain setup that you can do is Let the stock kind of you know, let let the chart form first, right? so let it, you know really extend here and you can see when it kind of wash and trying to go lower at this point and You can see here When the stock is trying to go lower, right? Longs are kind of you know sell into that because you're kind of panicking that okay stock is under view app I have to you know to cut my position. I have to get out of the trade right here and the shorts are more interested because If it's easy to borrow a lot of people who have shares and those are usually the inexperienced one, right? Like if thing or swim or interactive brokers, they have shares. That's mean the demand Like the demand is is really big So as you can see a stock is trying to go lower and a lot of people slamming down here Expecting the stock is gonna go down, right? The moment is squeezed back because it was like easy to borrow a lot of you know, short Chasers are chasing down here But when you see kind of this pop to this level they kind of panicking right those are those stubborn shorts We call it they're gonna panic and then they end up covering right and so one once it broke this level Those are even the people who are shorting down here will cover into this and and this That's why you see the big move, you know squeeze that back and the moment it got squeezed back up here The longs the stubborn longs are thinking. Okay, so the stock is reclaimed now. I have to chase something here So that's what that's how that's why you see that's big move to a potential upside here because Shorts are covering right shorts chasing down here. They're covering back up It's just to get out, you know the go the one cover here one cover here longs Okay, so this is a breakout kind of pattern, right? So I have to get in here chase long here chase long here and chase long here So that's how you kind of interact or how you can, you know, explain how kind of the move or how the stocks kind of moving into that that directions and and With SSR is even worse because SSR you can't even slam the bit, right? If you want to do short, you know, you you have to kind of wait on the ass you know, so usually kind of short self-restriction and Longs cannot, you know Slam the bit to get out so They have to kind of put it on the ass and you know shorts also on the ass and you know, usually those Those kind of kind of stocks that has SSR on and ET like easy to borrow They tend to squeeze more and you see a lot of kind of teleport candle Doing those so yeah, so the concept here is like If you want to long just you know, just keep it simple You know, just long the dip and short the rip, you know, that's how I kind of approach it You know for for me So if I was you know, even thinking about long I would definitely long, you know, I would draw my line This is the line. I'm seeing here, you know, it's the previous high, right one stock broke through that Resistance becomes a support, right broke that with the authority. So this level is broken now I want to see it as it back to that. So as you can see here resistance becomes support That's a good place and you know for a long You don't want to be chasing up here or you don't want to be chasing up here if you long always look for the support also You can you know, if start reclaim view app You can you know, long some a dip at view app and then just risk on that, you know It's really up to you, but I don't recommend it You know to kind of long in in the pre-market if you knew if you still don't know what to do So so that's one of the edge on the long side in the pre-market Okay, so let's say I'm a short bias trader, right? And I want to ignore all that in a pre-market here. Let it extend and I'm gonna show the back side So what would be my best entry? What would be the best high risk and reward kind of scenario, right? So I want to see the stock kind of show its card first for me It's like basically the stock is broken or some sort of a weakness like a trend reversal or something like that. I mean I don't know two minutes here two minutes here Just wanna yeah, if you draw a line here if you draw a line from this To this You can see how the trend is still intact, right? But the moment it cracked this line This trend is basically broken. So I could tell that in the short kind of short timeframe for the stock is Is broken, right? But it doesn't mean that it could reclaim back But in a short timeframe that the stock is temporary, you know broken now So I can show back the bounds or I can you know short the weakness after that, but Since is easy to borrow stocks Right the trend is broken now now now. It looks like more short to me than instead of long, right? So at the open here at the boat at at the open here. I'm just gonna draw that line again Yeah, you can you know, whatever you can choose this From here to here, you know, whatever line You're comfortable with, you know all this To that to this low Yeah, so basically the trend is broken and as a short bias trader I want to show back the bounds I don't want to be I know that the stock is easy to borrow, right? The moment it cracks you a lot of shorts are chasing. I mean, you don't want to be those that were chasing the stock And yeah, of course, sometimes could work sometime. It's not right But you know major of the time if you chasing down here and stocks kind of squeeze back You're gonna end up, you know stopping out or like, you know, and then up hurting yourself. So Just be cautious with that one when it's easy to borrow or like SSR is on Always wait for the bounce. They always bounce back. Don't worry about that I mean, if you miss that so bad, right? Easy to borrow. I don't want to mess with that if I Like if I want to trade the stock, I need to have a perfect entry Otherwise, I'm not interested in for the longs. I want along the dip for the short I want a short resistance on the rip, right? Whatever So the moment the stock kind of broke up broke the trend here. Just let it tank, right? Just let it tank here and then you can draw some some line before Okay, so first let's see. This is the high. Okay for the different drawing tool So this is the pre-market high That's one line for me. The second line is This support here right here, they've been saving this support Support resistance also another line for me, right? So I have two lines here. So I'm gonna Wait for the stock to kind of form more You know charge to form more so that I can have that so that I can draw, you know some sort of line after that, right? So Moment it tanks here pops up here. I have here another line. So So as you can see stock dips right into this support So now if I want to long, right? Yes I can go ahead and grab some long here because the stock is eating, you know, easy to borrow likely. It's gonna pop Okay, I mean worst-case scenario. I mean like Whenever you training always have Stop or like risk management in place, you know, I don't care if the the setup is is It's really good in your favor Or like, you know, it's like like nothing is 100% right nothing is so like anything could happen but you have a high probability of the pattern and that's why you need to track and And here, I mean the edge for long is pretty good pretty decent, you know Extended and then it dips right down here to this major support, right? The next line will be this support, but if it dips to this, you know Let's say you're gonna long and then you're gonna gonna stop out and maybe at this line or like 6.5 Right here before you get another entry down here. So it's it's really up to you I'm just saying, you know examples here So if if you know easy to borrow if I want to long, I want to learn that right into the major support into the support If I want to show the stock, okay So I know this is the line and this is the line. Okay, so I'm gonna scale up to those resistance because those resistance are More the outer lines for me. I mean if stocks end up if the the short Are chasing down here, right likely they're gonna cover After reclaim view app long so I'm gonna chase more so up here So that's why this line outer lines is always works the best for the short seller on the easy to borrow stock so If I draw that line up would have seen, you know The clear, you know line for me to kind of short into I have this one here and that one here I mean, you know 8.5 9.2 if that's too much for you. You can you know easily Okay, I'm gonna put some bullets here near that 8.5 and just risking a 8.7 And I'm gonna try it one more time 9 9.2 and you know risking 9.5. So The point I'm trying to make today is that on the easy to borrow stocks You have to be patient. You cannot chase. I mean chasing on the easy to borrow stocks not gonna end up well because You know, there's a lot of stubborn shorts or long Interested in the stocks when you have only like, you know people on the one side is easier And you know how to trade and it's like, you know when when the stocks having like If the stocks only have long long long long long, right? So usually When it kind of reverse those people who are long in stock, let's say Let's say here, you know, you have all the long bars here chasing the stock up here if no one has shares and no one Kind of has shares to kind of short the stock All, you know, those Like will end up into like the stock will end up into keep fading the old days. So that's why We seem a lot of like all day fader. I Can't remember which one it was Yeah, I think it was DSS Yeah, this one you can see, you know, all longs are chasing the stock But then they're like not, you know, many like a short You know have shares to short the stock. So that's why I mean it just I mean the game is just really about demand and supply kind of and And when you see so so many demands and supply on this one As you can see, you know When it starts kind of weeks down here shorts are keep piling, you know, it's just, you know, shorting down here Those are the most dangerous point to trade in I mean Usually for on the short side on on easy to borrow stocks. So I would always suggest There are more edge on the longs for the easy to borrow and SSR and low floater There are more edge for longs. So if you want to trade that stock go long, right? But still you need to time it, right? There's not much edge for the short side but If you want to short the stock, right? If you want to short the ETB or SSR stock low floater Always aim for the outer line. So I always wait for the outline You cannot chase the weakness on easy to borrow stocks. That's all I'm trying to say today. Okay, and If you are on a short side and you wrong, right? I'll like, you know, if I want to short the stock Which is easy to borrow. I want to short into the Like the parabolic move the strength and I have the, you know Clear wrist the proper wrist to wrist from so usually what I do is I wait for the stock to kind of pop first You know, I don't want to be guessing the top Just let the stock top out first and then I show back the bounce. So I have a clear wrist in mind So in this case tops out here 9.3 And it dies off to like 6.5, right? So that's, you know, pretty clear That's the stock is telling me, okay, the top is temporarily set right now. I can short towards that High or that top risking over that, right? So as you can see here 8.5, you know Has some more move 8.5 you can see how the resistance kind of reacts to that Until the last time, you know, as as As they grinding, you know as as the range are kind of tenants a little bit So that's where you see the breakout, right? Like, you know pop here drop pop here drop I mean if you just keep shorting at that resistance, how many times you will get right? I mean just ignore the first one. So you have once here got like, you know, almost dollar move 1.5 you have 1.2 and You're right here. So you can get like, you know, 50 cents move. So a dollar 50 cents 50 cents That's almost two bucks Right. So but if you just like keep chasing and you know down here in the middle the short And you know the witness here you're gonna end up, you know stopping out like once twice and three times so the best way is to short the outer lines resistance or whatever you you call it and For the long just long at the dip major support define what major support is and also you also I think there's one good long strategy is that Wait for the stock to kind of reclaim view app and then dips to that you can shoot, you know long some day and just risking over this But again, you know, it's easy in hindsight, right? Nobody knows That stock is gonna squeeze that much. I mean, I had the idea. I had the right thesis that I Kind of you know, put it in the main chat as well that likely the stock is gonna squeeze into after hours, but I don't know that right I have You know, some sort of idea that I don't want to be shorting this Into like after zombie and also in the afternoon because you know well above view app So is that not does not match my criteria. So I didn't want to touch it, but it doesn't mean I could go long on that so right But on the short side the first hour, that's our edge easy to borrow stocks. Wait for the outline Don't try to chase weakness here. That's all I'm trying to say and if you allow a long bias You know wait for maybe 10 10 30 and then let's see how the stocks behave See, you know, if it starts continue to fade here or likes continue to squeeze, you know above view app So yeah guys, so I hope, you know, this video is helpful So I hope to kind of clear out some of the questions you have regarding ETB easy to borrow stocks If you still have questions on any of this or like topics and like easy to borrow and so on just you know Don't be afraid and hit me damn anytime. I'm always here for you guys. So if you need anything, let me know and Yeah, so let's have a great trading week next week and I'll see you guys on the next one Take care