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Trading Lessons

Everything That You Need To Profit

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Written by Timothy Sykes
Updated 3/18/2024 6 min read
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Never underestimate your ability in this world.

 

There are daily profit opportunities in this market! But some people continue to doubt themselves.

Ladies and gentlemen:

In your back pocket you hold an infinite source of information. And with your complex human brain, the sky’s the limit.

It’s easy to get lost in today’s society. People think:

  • I don’t have a fancy car.
  • I don’t have nice clothes.
  • I don’t have rich parents.
  • I didn’t go to Harvard.

Who cares?! These things don’t define you.

You are the sum of the actions that you take with the tools at your disposal.

As human beings in 2024, we have an unprecedented opportunity to drastically change the outcome of our lives. I’m talking about things like first generation millionaires.

The jump from your couch to a millionaire trader can seem daunting. But that’s because you don’t truly understand the power that you wield every day. The creativity and intelligence that you’re gifted with.

Don’t believe me? We see evidence of this among our closest ancestors.

I’m sharing a video from a few years ago, but it hits on our trading topic in a major way.

Orangutans in the jungle are documented using hand saws without any prior instruction:

These animals were never expected to cut through wood. But they learned how to do so by watching jungle workers. And it’s a remarkable achievement.

Just like no one expects us to trade penny stocks for lifetime profits. I’m already at $7.6 million. My student Jack Kellogg is at $12.4 million.

If an orangutan can watch a wood worker and learn to use a saw …

Surely you can watch a professional trader and learn how to profit.

Study My Trades

Tim Sykes tosses his book An American Hedge Fund in the Alps
© Millionaire Media, LLC

I’m always posting blogs and YouTube videos sharing past trades.

Let’s go over last Friday’s trade for example, starting stake of $2,418:

Source: Profitly

Verb Technology Company Inc. (NASDAQ: VERB) announced the launch of its new Facebook and Instagram online shopping technology.

In the Tweet below, you can see my students and I were alerted at 8:46 A.M. Eastern. Before the market even opened:

I traded it during premarket on a dip before it broke to new highs. My traded totaled a 22% gain:

VERB chart intraday, 1-minute candles Source: StocksToTrade

This is a classic dip buy pattern where we aim to sell into the breakout strength.

VERB spiked +500% last Friday. I only caught a fraction of the move. But I’m proud of my 22% profit.

When most traders lose … a 22% gain within a few minutes is a HUGE win.

And this pattern is recurring in the market as part of my larger 7-Step Framework.

This isn’t rocket science! You just need trading experience.

Monkey See, Monkey Do!

© Millionaire Media, LLC

Technically, orangutans aren’t monkeys. They’re apes.

And humans are more closely related to apes than monkeys … But you get my point.

Don’t let this process frustrate you. It can take time to perfect. But, like the orangutan, we can learn how to adopt this process by watching professionals.

“I’m not an orangutan, Tim. And trading isn’t the same as using a hand saw”

No duh …

Stop limiting yourself. See?? You’re doing it again!

I have over 30 millionaire students as proof. And that number continues to grow.

You’ll probably suck at first. I’m just being honest. The orangutan made for a pretty horrible contractor on day one.

I’d never hire that bloke …

But give it a few weeks, a month or two, even a year from now. You’ll be surprised what you’re capable of.

Don’t miss out on the biggest opportunities for small-account traders this week. At the very least, learn from these setups:

Watch professionals track the best plays LIVE.

Soak up as much information as you can. This 2024 market continues to run wild.

And there’s still time to capitalize.

Cheers.

*Past performance does not indicate future results

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Timothy Sykes

Tim Sykes is a penny stock trader and teacher who became a self-made millionaire by the age of 22 by trading $12,415 of bar mitzvah money. After becoming disenchanted with the hedge fund world, he established the Tim Sykes Trading Challenge to teach aspiring traders how to follow his trading strategies. He’s been featured in a variety of media outlets including CNN, Larry King, Steve Harvey, Forbes, Men’s Journal, and more. He’s also an active philanthropist and environmental activist, a co-founder of Karmagawa, and has donated millions of dollars to charity. Read More

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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”