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Penny Stock Basics

5 Steps You Should Take Every Morning

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Written by Timothy Sykes
Updated 1/10/2023 6 min read

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Below you’ll find my 5 Step Process that I feel everyone should utilize to get the best results and put you on track for success.

If you’ve watched my DVD guides (which are on sale here for 48 hours ONLY), seen my recent trades HERE of what kinds of trades are working best right now and read my recent blog posts like “Try This Every Morning And You’ll Make Money” and “The Best Play That’s Working Well Right Now” you know it’s VERY important for me to look for hot stocks near the market open.

And even though I was traveling today, I still nailed one of the hottest penny stocks today as I detailed in this video lesson and as you can see from my solid $1,000+ profit trade on it:**

And while making $1,000 doesn’t seem like big money, that’s how my top millionaire trading challenge students and I grew our accounts at the beginning** and remember that’s more than enough to keep the real job away…so leave a comment below this post saying “I will make $1,000/day” if you understand and watch this video for further proof:

…and I even emphasized this specific point in yesterday’s blog post “My Thoughts On The Coming Week” and sure enough that mentality and strategy paid off nicely today.

So, here’s a simple 5-step process you can do EVERY single morning before the market open at 9:30am EST…ideally by 9:15am EST or even 9am EST so you’re not rushing right at the opening bell at 9:30am:

1. Check the biggest % gainers and other top scans that are built into this key tool since it’s built specifically for scanning the hottest low priced stocks which no other platform is built for…and it’s on sale for 48 hours HERE using coupon code save100

2. Out of whatever big % gainers you find, look at the news that cause the big % gain…is it an earnings winner that has the potential to be like this solid long pattern? Is it a pump that is better for shorting like this pattern? Or is it a pump on the verge of a big collapse that might make it a great dip buy like this pattern…or is it something else?

Study and get to know the most common and your favorite patterns ahead of time (researching these video categories meticulously helps a lot), see which patterns you’re best at capturing some of the big move on and ignore patterns you suck at…we’re all different so just because one pattern works for one trader does not mean that it’ll work for you, some of my top upcoming millionaire trading challenge students just have a few key patterns they’re good at:

…and also understand that just because a pattern has worked in the past does not mean it’ll keep working so you must adapt to changing patterns too, as my most successful Trading Challenge student has done well:

3. Stay out of the big % gainers without news — I usually ignore big % gainers without news as you have NO idea what’s causing the big run up so it could literally be a good long or short and you have no idea, it’s a coin flip and I would not be a successful trader if I liked 50/50 odds…that would make me a typical gunslinging gambler and I know too many traders who have fallen victim to trades with crappy odds just because they’re such degenerates that they need “action” all the time…it’s kind of sad that I have the most Millionaire Trading Challenge students and it’s 100% because most other teachers don’t emphasize the importance of being extra-picky and extra-safe when trading these volatile stocks, I’m a full-on coward in trading and teaching and I’m proud of it since it gives students the right mentality, even if brokers and gunslingers tell you to trade a lot more than my top students and I do…welcome to the industry that’s full of shit, where most brokers and “teachers” are on the verge of a very dangerous reckoning as I warned here.

4. Use my https://traderchecklist.com guide parameters to plan your trade BEFORE the market opens…we even have this handy free tool so you can plug in values like float, market environment and past performance of spiking as ALL of that matters when I make a trade…see today’s video lesson to see how I have internalized all of this over the years and am able to find the best stocks before most others put it all together.

5. Don’t be looking to trade ALL THE TIME, but be open to trading IF a play fits enough of the indicators I go over and over and over…then it’s just rinse and repeat, practicing your trading, even if you have no money using paper-trading here to get used to the volatility that these penny stocks have and trying to take trades with solid risk/reward…knowing that you won’t win 100% of the time — my top Millionaire Trading Challenge students and I “only” win 65-75% of the time, simply cutting losses quickly when we’re wrong and trying to capture “the meat of the move” on all the best plays of the day, understanding that the majority of volatility happens right near the market open and the market close and that’s why I have so many part-time students and traders too!

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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”