timothy sykes logo

Patterns To Watch

How I Made $10k With One Pattern

Timothy SykesAvatar
Written by Timothy Sykes Reviewed by Jack Kellogg Fact-checked by Ellis Hobbs
Updated 11/25/2024 5 min read
How I Made $10k With One Pattern Thumbnail

It’s Tim Sykes here.

On Friday, November 22, I snagged a 19% profit from Palladyne AI Corp. (NASDAQ: PDYN) using a very specific trade pattern.

See my notes below:

Source: Profit.ly

And on Monday, November 25, I used the exact same pattern to snag 42% from ZenaTech Inc. (NASDAQ: ZENA). Take a look:

Source: Profit.ly

We’re likely to see another opportunity like this soon! These patterns repeat in the market.

In today’s blog post, I’ll show you my positions overlaid on each of the charts.

The more times that you see these trades, the quicker you’ll be able to use these patterns to grow your account.

Pay attention and take notes!

The #1 Setup Right Now

© Millionaire Media, LLC

To the untrained eye, PDYN and ZENA might not look similar.

By the end of this blog, you’ll realize the similarities they share and how traders can play this price action for a profit.

Take a look at the charts below to test yourself before seeing my positions.

Can you spot the similarities??

Here’s PDYN, every candle represents one trading minute:

PDYN chart intraday, 1-minute candles Source: StocksToTrade

Here’s ZENA:

ZENA chart intraday, 1-minute candles Source: StocksToTrade

Now, the first thing that you have to understand is … Both of these stocks have a low float and a reason to spike higher:

  • PDYN only has 16 million shares in the float and announced an expanded partnership with Red Cat Holdings along with Red Cat’s ‘Teal Drones’.
  • ZENA only has 1.1 million shares in the float and announced that it signed new supply-chain partners to sell to U.S. defense branches and NATO forces.

The low float (low supply of shares) ensures volatility. When demand increases, the low supply will help prices spike higher.

And the demand will increase when these stocks announce bullish news …

Sometimes I see new students trying to apply my patterns to the wrong stocks.

Make sure that you’re watching spikers with a low float and recent news to help propel share prices higher.

My Positions

© Millionaire Media, LLC

On both of these charts, we see:

  • The stocks spike in the morning.
  • The prices consolidate intraday.
  • There’s a breakout to new highs.
  • Then the price consolidates again above the morning spike.
  • And then the stock shoots higher still.

My goal is to buy shares on the second consolidation (above the morning spike) and hold shares into the push higher.

>> This Is Where You Can Find The Entire Pattern I’m Using <<

Take a look at my positions overlaid on the charts below. Every candle represents one trading minute:

PDYN chart intraday, 1-minute candles Source: StocksToTrade
ZENA chart intraday, 1-minute candles Source: StocksToTrade

The price action doesn’t look 100% the same, but the underlying pattern is undeniable.

This pattern will repeat in the market!

Study this price action and make sure that you’re ready for the next low-float runner with news.

Cheers.

 

*Past performance does not indicate future results

How much has this post helped you?

(0 votes, average: 0 out of 5)
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”