timothy sykes logo

Trading Lessons

Tuesday Volatility: How To Trade

Timothy SykesAvatar
Written by Timothy Sykes
Reviewed by Jack Kellogg Fact-checked by Ellis Hobbs
Updated 1/20/2025 5 min read

The market was closed yesterday in observance of Martin Luther King, Jr. Day.

It was also the day that Trump swore in as the 47th President of the United States.

Even with regular trading closed, we saw a bullish reaction from other parts of the market. Take a look at the image below from CNBC:

And last weekend, we watched immense trading volatility from the TRUMP meme coin.

I’m ready for a lot more volatility this week …

And I hope you took time to rest over the weekend.

We’re already seeing spikes at all hours of the day in this market. And during this shortened trading week spurred by Trump’s inauguration, that volatility is set to continue.

Pick a time frame that works for your schedule!

And make sure to show up every day, ready to capitalize.

Here’s how to trade this week:

Trump Volatility

sykes on phone
© Millionaire Media, LLC

I already shared a list of the top stocks that are related to Trump.

Browse this watchlist!

But understand that we’re not limited to Trump-related spikers.

The bullish sentiment in the market extends much further than a select few Trump stocks.

For example, last week we watched Phio Pharmaceuticals Corp. (NASDAQ: PHIO) spike 470%*. The price ran from $1.69 per share to $9.79 in one day.

And it wasn’t related to Trump at all …

The price spiked because the company announced promising results from its ongoing clinical study of PH-762. A treatment that helps human cells defeat cancer tumors more effectively.

Take a look at the chart below, you can see when the news was alerted during premarket hours. Every candle represents one trading minute:

PHIO chart intraday, 1-minute candles Source: StocksToTrade

I traded this spike last week.

Here are my trade notes:

Source: Profit.ly

This week I’m looking for similar moves in the stock market.

The stock doesn’t have to directly relate to Trump. Instead, we need to identify bullish momentum that relates to a positive news catalyst.

It also helps when the stock has a low float: Below 10 million shares. The low supply helps prices spike higher when demand increases.

For example, StocksToTrade shows that PHIO has a float of only 547k shares.

These are the hottest stock spikes right now …

  • Low-priced stocks, with a low float, and bullish news.

Keep an eye out for stocks that have these factors this week.

How To Trade These Stocks

© Millionaire Media, LLC

As you can see in my trade notes from PHIO’s spike last week, I used a dip-buy strategy to profit from the momentum.

It was a premarket trade when the stock spiked past $4 …

I use the same patterns over-and-over again in the market.

The dip-buy pattern is one of a few patterns within the larger life cycle of these stock spikes.

The entire life cycle is called the 7-Step Framework.

Depending on where the stock is within the life cycle, we’ll use one pattern over another. I saw that PHIO was setting up for a breakout past $4, so I used a corresponding trade pattern.

After enough time in the market, my students begin to recognize these setups in real time, all on their own.

Take a look at an example from last week:

Source

Until my students gain self sufficiency, my students use AI to track the hottest stocks in the market.

The AI follows my exact trading framework!

This week, prompt my AI with the biggest stock spikes. It will give you a trade plan as if you asked me directly.

Cheers.

 

*Past performance does not indicate future results


How much has this post helped you?



Leave a reply

* 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”