Jim was out tonight teaching the home gamers a new way to play the market called short-busting. Jim explained that the shorts are the people who bet against a stock and hope it goes down, and when you try and bust the shorts you’re hoping they’re wrong. Jim explained when a stock is heavily shorted and the shorts the forced to cover their shares you get a short-squeeze which causes the stock to explode higher. That’s where short-busters make money, Cramer said. If you’re going to ride the short bust, you must eye the stock’s average daily volume, which reveals how hard it would be for shorts to close or cover their positions, he said. And if the shorts are deep, they’ll drive up the price to get out with profits. Jim also mentioned that investors should look at the insider buying in a stock that is heavily shorted because this can raise the confidence of the buyers. Jim also commented on how when he was at his Hedge Fund he use to short stocks all the time and worry about losing money. Now, James Altucher has developed a system that takes into account the two key metrics mentioned above and put them on his website Stockpickr. We would also recommend that investors look at the site Shortsqueeze to look up key short interest data.