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Watchlists-Penny Stock Investment Strategy

8 AI Stocks I’m Watching

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Written by Timothy Sykes
Updated 5/25/2023 7 min read

Watching paint dry can be more exciting than trading sometimes.

We’ve experienced several dull periods in 2023…

But this isn’t one of them.

I’ve seen A TON of early-morning spikers in tickers GCT, OCEA, MBOT, ENVB, and UTRS.

And I’ve been able to profit off most of them.

But I’m not trying to brag. In fact, if it weren’t for miserable short sellers, most of these players wouldn’t even exist.

They keep shorting the wrong stocks and getting their butts kicked. But you’ll never hear about their losses because they’re dishonest.

Now, let’s shift gears a bit.

The tech sector is going bananas following Nvidia’s outstanding quarterly earnings results.

And while I don’t trade mega-caps, it has several implications for the stocks I’m following…

…Stocks that have the potential to move 30%, 60%, or even 100% in a single day.

NVIDIA and AI Have The Nasdaq Raging Higher

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Shares of Nvidia exploded by more than 25% following the company’s strong quarterly earnings report. The chipmaker said it is experiencing growth from its data centers and data center chips.

And, of course, many experts believe it will be a MAJOR player in AI chips.

In fact, Nvidia’s monster results sparked a $300 billion rally in AI stocks.

And while I won’t be trading any large-cap stocks tied to AI…

I have my eyes set on 8 small-cap stocks making news with AI.

8 AI Stocks I’m Watching Now

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The stocks I’m watching related to AI are:

  • BBAI
  • GFAI
  • MRAI
  • CXAI
  • SOUN
  • APLD
  • GSIT
  • INOD

All of these stocks have had their AI moment…

But that was all based on hype. However, Nvidia’s massive jump in revenues and raised guidance legitimizes AI and how massive it can be right now.

Before I go any further, let me make something clear. 

Those 8 tickers above are stocks I’ve traded before and may trade again in the future.

But that’s all they are. I don’t consider them to be good companies, sound investments, or anything like that.

They are just trades to me. 

What I Want To See

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You want to look at the size of these companies. 

For example, MBOT, which, just a few days ago, went from $1.23 to $4.37.

This was a blatant pump.

However, the shorts picked the wrong stock.

You see, only about 8 million shares are floating in MBOT. And at $1.50 per share, that means you only needed about $12 million to control the entire float.

Now, $12 million may sound like a lot of money.

But you have to understand most brokerage firms will leverage traders 4 to 1, which means you probably only need $3 million in capital to control the stock.

Now, you get five to ten traders who have some capital pushing this stock long you can see how this can be a bad idea to be short.

Legitimizer News

Megacap tech stocks are soaring. That means it’s a good time for these small-cap stocks to try to associate

For example, one of these companies comes out and says they have ordered Nvidia chips or something similar that can tie them to the mega-cap tech company.

The reason why is that these mega-caps are really moving right now.

Two Ways To Play This Game

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The first way is to be fast. Sit in front of your screen and watch something like the StocksToTrade Breaking News Chat. 

I’m not always at my screen, so I sometimes miss the first move. In my opinion, I have found them to be the quickest and easiest ways for me to make money. But I’m not trading all day, so I don’t catch many of these.

However, I will take note of the moves. And I will review the charts on different time frames. I do this because I want to understand support and resistance areas.

I want to see if it’s a former Supernova and if it has any historical patterns.

Gathering this information helps me form a plan.

For example, I don’t beat myself up if I miss the initial spike.

Instead, I am looking for levels to buy in case of a sharp panic sell-off.

And that’s where I’ve been finding most of my success.

Finding stocks that have huge spikes off pre-market news and then waiting for them to have a sharp sell-off, usually within the first hour of trading.

I find when timed correctly, I can make a quick 10-25% in just a few short minutes.

But now, I feel like the profit potential can be even greater.

That’s because these miserable short sellers are so stubborn…

They’re igniting one short squeeze after another…

a Supernova after another.

Final Note

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The reason why short-sellers are so pathetic is that they don’t know how to manage risk. In addition, they are the worst market timers. They’ll short a stock at $5 and still be in the trade when it’s at $25.

The same traders who let stocks go $10, $15, or even $30 in their faces are the ones who try to make fun of me for cutting losses quickly and getting out of trades at break-even when they don’t work right away.

But I’m grateful for these clowns.

Because they’re now giving us opportunity after opportunity.

And for the next few days, I’ll be focused on BBAI, GFAI, MRAI, CXAI, SOUN, APLD, GSIT, and INOD.

If you want to learn my favorite strategy for trading these stocks, then CLICK HERE TO FIND 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

* 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”