Finding a short squeeze is a sure-fire way to make quick money as a long-biased trader. A short squeeze can best be described as the opposite of a sell-off. Instead of traders dumping all of their shares as the share price plummets, short sellers are rapidly “covering” their positions — most likely in the event of a stop-loss raid — sending the value skyrocketing on volume.

When a short seller enters the trade, they expect the stock price to go down. If the opposite happens, shorts are forced to cover and the stock price will surge the other direction. If you happen to catch a squeeze and go long before the pop, it’s possible to ride that momentum and cash-out before the reversal.

Short squeezes are not always easy to find, but they do tend to happen at least once or twice a session. The best way to locate one would be to search out a low-float stock that had gapped up earlier in the day but has since lost its momentum. If you are able to pinpoint exactly which level on the chart where shorts would be covering — typically at the high-of-day, VWAP or previous resistance point — you could find yourself pocketing some comedically easy profits.