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$50,000 Is On The Line (Here’s My Strategy)

Posted March 27, 2026

Davis Wilson

By Davis Wilson

$50,000 Is On The Line (Here’s My Strategy)

Paradigm just launched a $50,000 Trading Challenge.

First place takes home $50,000.

Second place gets $10,000.

Third place earns $5,000.

And all you have to do is pick a stock.

The stock that goes up the most from April 1st to April 30th wins.

Now here’s the important part.

With thousands of participants, the winning stock isn’t going to be up 10%.

It’s probably not even going to be up 50%.

To win this, you’re likely going to need a stock that goes up 100% or more in a single month.

And that completely changes how you should think about your pick.

This is not normal investing.

You don’t need safety. You don’t need diversification. You don’t even need to be “right” in the traditional sense.

You need one thing: A stock that can explode higher in a very short period of time.

And since you don’t actually have to put real money behind the trade, you’re free to take risks you normally wouldn’t.

In fact, you should.

So where do you find a stock like that?

Here are my best tips to find a stock that’ll win Paradigm’s $50,000 Challenge.

Tip #1: Win the "Approval" Lottery (Small-Cap Biotech)

If you want a real shot at a 100%+ move in a single month, this is where it usually happens.

Small biotech stocks often live or die based on an FDA decision or a clinical trial result.

If the news is good, the stock can double overnight.

If it’s bad, it can get crushed just as fast.

That’s exactly the kind of setup you want in this challenge.

Remember, you’re not trying to avoid risk.

You’re looking for a stock that can move big, fast.

So the play is simple.

Find companies with a major catalyst scheduled in April.

Specifically:

  • FDA approval dates (PDUFA)
  • Phase 3 trial results

You can track upcoming FDA decisions using this FDA calendar.

Tip #2: Find a Prime “Short Squeeze” Candidate

When a stock has a high short interest, it means a large number of investors are betting against it.

If the company then delivers unexpected good news, those short sellers are forced to buy shares to close their positions.

That buying pushes the stock price higher → Which forces more short sellers to close their positions → Which pushes the stock price even higher.

That’s called the “squeeze.”

Here’s the setup you’re looking for:

  • Short interest above ~20%
  • High “days to cover”
  • A clear upcoming catalyst

That catalyst could be earnings, a partnership, or any surprise positive development.

Get out your crystal ball here.

Do you have any unexpected Iran guesses? Any thoughts on how a SpaceX IPO will impact the market? Etc.

I prefer to check short interest via Finviz.com via their Screener → Ownership tabs.

Tip #3: Leveraged ETFs (The Cheat Code)

I haven’t picked my stock yet… but I’m thinking I’ll go in this direction.

[Note: Paradigm employees can’t win the prize money. We’re competing for bragging rights.]

3x leveraged ETFs are designed to deliver three times the daily return of an index.

In a strong month, they can outperform almost everything.

A few examples:

  • SOXL – 3x semiconductors
  • TQQQ – 3x Nasdaq 100
  • LABU – 3x biotech

If chips rally, SOXL can rip.

If biotech gets hot with approvals, LABU can explode.

This is the closest thing to a broad bet with built-in leverage.

Just understand, these are volatile.

They’re not meant for long-term investing.

But over a one-month window, they can absolutely compete.

Don’t Be Afraid to Swing

Most people are going to approach this challenge the wrong way.

They’ll pick “good companies.” They’ll look for steady growth. They’ll try to be right.

And they’ll lose.

Because this isn’t about being right…

It’s about finding the stock that can move triple digits in just 30 days.

I hope these tips helped.

Don’t be afraid to take a swing.

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