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Trading Recap

5 Powerful Insights from a +$2K Profit Week

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Written by Timothy Sykes
Updated 6/23/2023 7 min read

Do you ever feel like you’re always a step behind the market, or maybe your PnL isn’t reflecting all the work you’re putting in?

I know it can be extremely frustrating…

Just watching the opportunities slip by as your account stagnates or, even worse, dwindles.

Missteps can cost you time, money, and the confidence to stay in the game.

But here’s the thing…

You might be missing just one or two key ingredients in your trading.

Last week, I turned in a solid $2K+ profit. And while that isn’t a lot of money to me, there are several things I’m proud of and can build from.

That’s why I want to share the 5 takeaways from last week’s trading.

It could be what you need to put yourself in the right position to win this week.

Let’s get started with the first takeaway…

#1 Taking Small Profits Is The Name Of The Game

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I truly believe we are in a new bull market.

These things are obvious well after the fact on Wall Street.

But I accurately predicted the last bull and bear markets. And I can tell you, it does feel like this market is setting up to rage over the coming months.

However, we’re still not there yet regarding the trader’s market I like to see.

It’s still choppy waters out there.

And that’s why I’m aiming for quick profits, like this 7% winner in RCAT on Tuesday.

Dip buying has become one of my best patterns to trade in 2023.

#2 Recognize The Market We’re In

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We’re still in a learning market.

What does that mean?

Right now you should be studying daily, looking over your trades, recapping winning trades from other traders, picking up on new patterns, watching my videos, etc.

When things pick up again, which I believe they will, all that study time will being to pay off.

If you’re studying now and not seeing the results, be patient.

When you combine knowledge and the right market conditions…that’s when things can get crazy…and growth will look exponential.

I’ll be ready to earn when market conditions change…

Will you be prepared?

 

#3 Overaggressive Shorts Are Creating Supernovas

high frequency trading
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The typical PR pump goes like this…

A company releases a statement, usually filled with buzz words and hype.

Traders see the buzzwords…get excited, and buy the stock in the pre-market.

More traders look into the PR and start to realize it’s just a fluff piece designed to pump the stock up.

The stock starts ticking down, and all the longs try to bail out simultaneously, causing a massive sell-off.

But you know what?

Instead of the natural process of things unfolding…short sellers are coming in and changing the outcome.

For example, they randomly shorted AHI…leading the stock to shoot up by 1000%

Why would you short a stock that is only a couple bucks?

It’s soo DUMB.

But be grateful to the short sellers for giving us opportunities.

That said, paying attention to the price action is better than trying to analyze the PR.

#4 Don’t Be Scared To Test New Ideas

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You’d think after 20 years of trading and millions in the bank I’d be pretty set on my ways.

But that’s exactly why I’ve been so successful over the years… and why I have so many millionaire students. 

It’s true, there are some strategies like My Weekend Trade, that I haven’t really had to tweak much over the years.

But then other stuff needs constant attention and refinement.

How many day traders do you know from the late 90s and early 2000s?

There are not that many of us left.

You see, you’ve got to put your ego aside and be willing to learn, tweak, and play around with new strategies.

If the market is evolving…shouldn’t your trading also evolve?

So I’m trying new things for me, like this after-hours trade in MGOL:

Source: Profit.ly

#5 Hope For The Best…Prepare For The Worst

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I always say short sellers are among the worst people to be around because they expect and hope the worst to happen.

It’s a terrible way to view life.

I prefer to hope for the best but be prepared for the worst.

It’s easy to get wrapped up in the stories and get attached to these stocks.

But remember, most of them are trying to generate buzz so they can do a stock offering, which dilutes shareholders, and usually destroys the stock price.

It’s okay to be cynical if that means you are being careful and focused on risk management.

That’s why you should go into each trade with a plan.

And always remember to cut losses quickly if a trade isn’t moving the way you want it to.

Final Note

diluted shares earnings per share
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It might not look like it now…But we are setting up for a MAJOR bull market.

Those traders prepared will take full advantage of it in my opinion.

There is still time to acquire the proper skills, strategies, and mindset to become a better trader.

If you’d like to discover what my program can do for you:

Click here to learn more.

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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”