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The Strongest Trade Strategy in 2026

The Strongest Trade Strategy in 2026

Timothy SykesAvatar
Written by Timothy Sykes
Updated 1/16/2026 4 min read

Last week was insane.

We saw multiple stocks spike +100%.*

Actually, the 100% spikes were on the low end. We saw two stocks spike over 800%* last week … Each in less than 24 hours.

And this week I’m ready for more.

The 2026 volatility keeps building. This is by far the strongest strategy of the year, and it’s only January. There’s still time to get on board.

Forget chasing blue chips or guessing the Fed’s next move. These cheap stocks, the ones most traders ignore, can explode to incredible levels under a set of unique circumstances.

And as they spike, the price action follows the same few patterns over and over again. From one spike to the next.

This week, the market’s giving us another shot at face-melting gains.

Every morning, new tickers will show up on our scanners.

  • New press releases.
  • New sympathy plays.
  • New chances to flip your small account.

Don’t sit this week out!

Long Live Volatility

Volatility is the lifeblood of this strategy. Without it, the market lazily slugs along.

When volatility surges, prices move faster. We can see the volume spike on the chart. And my trade patterns tend to work better because emotions are at an all-time high.

Traders who understand these patterns have the opportunity to lock in sizable gains within minutes.

That limits our exposure to the overall market. We don’t need to catch the entire move. It’s easier to catch 10% – 20% when the stock runs 800% intraday.

See my post below:

Comparatively, a move on a blue-chip stock during a slow market might take months.

That’s why volatility matters so much. 

The potential to compound those smaller, disciplined wins grows exponentially. And that’s how traders flip small accounts.

Look at all the runners we saw last week. There were incredible opportunities at every turn:

  • High Roller Technologies Inc. (AMEX: $ROLR) spiked 850%*.
  • Springview Holdings Ltd. (NASDAQ: $SPHL) spiked 1,000%*.
  • Callan JMB Inc. (NASDAQ: $CJMB) spiked 400%*.
  • AuthID Inc Com (NASDAQ: $AUID) spiked 150%*
  • Bonk Inc. (NASDAQ: $BNKK) spiked 110%*
  • Moolec Science SA (NASDAQ: $MLEC) spiked 260%*
  • Venus Concept Inc. (NASDAQ: $VERO) spiked 800%*.
  • Jeffs’ Brands Ltd (NASDAQ: $JFBR) spiked 250%*.

Right now, the market is delivering top tier volatility.

If you’re serious about growing your account in 2026, don’t fear the chaos. Embrace it. Volatility is an opportunity.

The Next Stock Spike

The formula is simple.

  • Cheap stocks.
  • With a low float.
  • That announce news.

But if it was that easy, we’d all be millionaires.

These spikes don’t last forever. Hold and hope is not a strategy. Traders need to learn proper risk management to navigate this market safely.

When a stock spikes 500% – 800% in a single session, it’s easy to get caught up in the excitement. But that’s exactly when discipline matters most. Volatility can build your account, or destroy it, depending on how you manage your exits.

The traders who last are the ones who cut losses quickly, lock in singles, and repeat the process.

Consistency over greed. That’s how you win in this game.

This week, focus on building pattern recognition on the strongest runners. And in your downtime, study the biggest spikes from last week that I listed above.

Break down the charts, the breakouts, the consolidations, the fakeouts.

The same patterns will show up again, just on different tickers with new catalysts.

Maybe it’s another AI company. Maybe it’s a small robotics play riding the White House’s new automation push. Maybe it’s a forgotten biotech stock that announces breakthrough trial data.

It doesn’t matter. What matters is that you’re watching, planning, and executing when volatility hits.

Only Trade The Best Setups.

Take the meat of the move.

And remember. Volatility is your friend if you respect it.

Cheers

 

 

*Past performance does not indicate future results


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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.
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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”

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