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Trading Recap

3 Takeaways From My $3K Week

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

Over the last 90 days my overall trading performance has been mixed.

Going into Friday, I was down nearly $12K…

But that’s largely because of one boneheaded trade that cost me $27K.

Since then I’ve been trying to chip away by trying to rack up small wins.

Last week I made nearly $3K by being safe and selective.

Today, I want to talk to you about what I’m seeing working…

Plus…the one thing that will stop your progress dead in your tracks and how to avoid it.

Short Sellers Are The New Promoters

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Short sellers suck.

They all sit around together and pray for the worst to happen.

They are like a psycho cult…If you don’t share the same beliefs as them they’ll shun you.

But you know what?

I’m so grateful for them.

Why?

Because they are creating opportunities for me in this market.

Their overaggressive shorting…broken logic…and herd mentality is a gift.

Take for example this play in APLD

There were multiple short reports coming out bashing the stock.

Maybe they are right about the company…

But the markets don’t care…and fundamentals don’t matter in the short term either…We all saw what happened with the meme stocks in 2020…

Squeezes and Supernovas are still occurring…although they aren’t mentioned as much by the mainstream talking heads.

Look at what PWM did on Friday…

Nothing like a +240% Supernova…

Source: StocksToTrade

9 out of 10 times these moves are created by stubborn shorts.

You’ll likely never hear about their losses…but when they disappear from the scene…you’ll know why.

Pay Attention To The Patterns Working

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Last week, a classic pattern emerged…The First Green Day Setup.

Three specific indicators must align for a consistent OTC first green day play.

These include:

  • Big percent gainer with volume: The stock should be up enough that scans pick it up.
  • Holding gains: Towards the close, the stock should be at, or near, its high of day (HOD).
  • News catalyst: A significant announcement or news affecting the stock should be present.

The fact that IQST was a former Supernova…also gave me reason to get excited about this setup.

Look at the random spikes IQST has had over the years…

They had a solid catalyst… with news of an AI-backed Metaverse app that sent the stock flying.

Tesla Gains Some Friends

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Tesla has been the stand alone winner in the EV race this year in terms of stock performance.

But we’re starting to see other players emerge…

For example, RIVN had a phenomenal week, gaining more than 50% after it posted strong Q2 production numbers…

The move in RVIN created several sympathy plays.

Ticker symbols MULN, CENN, and VLCN all finished the week strong.

Keep an eye out for these lesser known EV plays if the sector keeps going: SEV, PSNY, WKHS, FSR, and AYRO.

Remember…when I mention a symbol it’s only for a potential trade.

I wouldn’t invest in any of these companies…nor hold them for an extended period.

This Will Kill Your Trading

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I’ve recovered a decent chunk of my losses from my $27K disaster but not fully.

I’m still trading small and trying to pick up small wins.

I’m also being selective.

I know that if I can keep the losses small…I can eventually find my rhythm.

I’m also traveling like crazy so I don’t want to be in that many trades. That said, if there’s one thing that will mess up your trading is OVERTRADING.

Not only should you get outside and enjoy life and not be a slave to the screens…

But let’s face it…you only want to be trading your best setups.

If you’re not doing that…you are gambling.

Everyone is vulnerable to overtrading…you’ve got to be careful.

The best way I stop myself from doing it is by reviewing my trades and reminding myself what I’m good at.

My goal isn’t to entertain myself or waste the day in front of my screen.

It’s to make money in the safest way I know how.

That’s it.

If the opportunities aren’t there…there is no reason to get involved.

Hence why I tell people to think like a retired trader.

You’re Only Limited By Your Imagination

jack and tim
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If you are looking to trade alongside other millionaire traders…learn the same setups and develop the right mindset…

Then COME TO ONE OF OUR LIVE TRAINING CLASSES. 

They are 100% Free to Attend. 


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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 (205) 851-0506 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”