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3 Stocks I’m Eyeing This Monday

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Written by Timothy Sykes
Updated 5/12/2023 4 min read

Impulsive and irrational decision-making can lead to devastating trading losses.

But if you want any chance of being one of the rare percentage of traders that becomes profitable…then you must learn to control FOMO.

Better yet…

What if you could turn the tables and capitalize on the FOMO-driven actions of others?

That’s exactly what I’m trying to do…

And here are three stocks I’m watching and the potential setup I’ll look to play…

Taking The Other Side Of FOMO

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The lack of discipline is one of the big reasons why a lot of traders never become profitable traders.

Being an action junkie and wanting to constantly be in trades will not make you one of my next millionaire students. 

I know, it’s hard to resist.

You see a stock ripping higher and you want to be a part of it.

But as quickly as these Supernovas move higher…they can move down even faster.

That’s why finding a good stock to trade isn’t enough.

You have to also focus on your entries.

Instead of chasing a stock as it’s moving up, I will put it on my watchlist.

My strategy is to wait for all those FOMO buyers to panic sell their position as the stock starts to crash.

I call it the panic dip buy…and here are three symbols I’m watching for potential trades.

Getaround, Inc. (NYSE: GETR)

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The company made headlines last Friday, acquiring assets from HyreCar for $9.45 million.

The stock hit a pre-market high of $0.93 on Friday but quickly sold off to around $0.50.

On a typical day GETR will see an average trading volume of 3.2 million shares. Last Friday, it traded well north of 50 million shares.

It was pretty choppy price action…which is something I don’t like. But if it can establish a base, and volumes are still there, it offers a good panic dip buy opportunity at some point.

Dermata Therapeutics (NASD: DRMA)

Dermata shares rose on Friday following a corporate update and Q1 2023 financial results.

Shares were trading as low as $1.57 last Monday and trading as high as $3.68 by Friday.

Just because a stock is selling off doesn’t automatically qualify it as a dip buy candidate.

I’m still watching trading volume to see if there is still any interest.

And sometimes I find it safer to just watch the price action to see how it reacts to bounces. Or if it’s just one of those stocks that’s slowly bleeding downwards.

If it can develop a base then it could offer an opportunity for a low-risk/high-reward entry.

SurgePays (NASD: SURG)

This stock rallied to $6.30 following its Q1 2023 earnings results.

But faded pretty fast after that…

It’s establishing a base at around $5.

However, there’s simply not enough volume right now for me to be interested in the play.

This is likely a no trade for me.

But I’m keeping it on watch in case something changes.

Final Note

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Believe it or not, finding the right stocks to trade isn’t that challenging.

However, where most traders mess up is with their entry.

They let FOMO get the best of them and take risky entries.

I prefer to not chase and wait for a panic sell-off.

If you’d like to learn more about how I trade Supernovas then check this video out. 

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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”