timothy sykes logo

Patterns To Watch

The 2 biggest catalysts on my radar

Timothy SykesAvatar
Written by Timothy Sykes
Updated 9/27/2022 6 min read

No matter how the overall stocks perform, there’s always a profit opportunity in the OTC markets.

Even when the market looks like this…

SPY chart 1-day candles Source: StocksToTrade.com

Need proof?

Stock prices have been sliding since mid-August … and during that same time, I’ve profited over $2,000.

And while that’s not life-changing money, it’s a lot better than most traders and investors who are bleeding out, losing day after day.

While they’re hoping and praying for a market bounce, I’m coming into each day fresh, providing my subscribers with a brand new watchlist and game plan.

So what am I telling my subscribers?

Well there are two main catalysts I’m specifically focused on, which you’ll discover right now…

The 2 Biggest Catalysts

how to find penny stocks that pay dividends
© Millionaire Media, LLC

First I’ll explain the catalysts and how to offer profit opportunities. Then I’ll share the best strategies to use. So make sure to keep reading for profitable patterns!

I’ve been talking about this one for weeks…

Catalyst #1: Market Crash

Post image

Get my weekly watchlist, free

Sign up to jump start your trading education!

Most Wall Streeters don’t get excited about a price crash.

But I’m not a Wall Streeter. I tried to play their game once when I opened my mutual fund. Spoiler alert … It didn’t end well. So I came back to my bread and butter; taking huge profits on low-priced spikers.

And over the last 20 years, it’s worked pretty well for me.

My framework allows me to profit in any market environment. And when there’s a price crash … There are even more opportunities.

Here’s how…

Whenever there’s a big price sell-off in the market (a crash), there’s usually a price bounce at the end.

The bigger the crash, the bigger the bounce.

My goal is to buy right after the crash, at the beginning of the bounce. Then I sell into strength as the price climbs back up.

I’ve been doing it for years. And it still surprises me just how predictable these moves are.

The market’s hovering above support right now … here’s a chart of the S&P 500 ETF Trust (NYSE: SPY)

SPY chart 1-day candles Source: StocksToTrade

A big crack could trigger the sell-off I’m looking for.

Remember to keep reading for the pattern I use…

Catalyst #2: Ethereum Merger

The crypto Ethereum system successfully switched from proof-of-work to proof-of-stake, making it 99.9% more environmentally efficient.

Here’s the full story.

That was on September 15. In the following weeks, we’ve seen volatility start to slowly creep into the sector.

And this is just the beginning.

Already, Ethereum’s co-founder is calling on other cryptos to follow suit. And as this sector snowballs toward environmental efficiency, opportunities to profit will continue to grow.

Now, it’s time for the good part…

How To Profit

© Millionaire Media, LLC

In the case of a market crash… 

Ethereum volatility… 

  • This is a bullish catalyst. We’re likely looking for price breakouts.
  • Here’s a guide to breakout trading.
  • Look for coins already spiking at least 20%.
  • They’ve gotta show me they have what it takes before I make a trade. And 20% is the tip of the iceberg … I’ve seen hundreds of percent point spikes.

Crypto isn’t my bread and butter. I usually trade stocks.

But my millionaire student, Matt Monaco has already proven that cryptos follow the same patterns I use for stocks. So it’s game on …

If you need help finding the best plays, check out Matt’s best trade idea of the month…

Here’s the #1 crypto play he’s got eyes on.

How To Trade Like Matt

matt monaco and tim sykes
© Millionaire Media, LLC

I call Monaco the boy wonder.

I reached over $1 million in trading profits right out of college.

Now, it might seem like Matt’s a genius. That it was a one-in-a-million shot. Neither of those things are true…

Anyone can do this. And Matt’s not the only one I’ve taught.

I have over two dozen millionaire students at the moment. And more are on the way … like Max…

This isn’t rocket science.

But lots of people don’t even get the chance to work toward financial freedom.

Is that what you’re looking for?

Here’s your chance.

Do what’s best for you,

— Tim

How much has this post helped you?

Leave a reply

Author card Timothy Sykes picture

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

* 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”