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Trading Lessons

How I Took Advantage Of An Obvious Trend

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Written by Timothy Sykes
Updated 1/23/2023 5 min read

I just had my best trading day of the year.

It had nothing to do with me taking wild beg bets…

Or even trading more.

I spotted an obvious trend in the market…waited for my setup…and took full advantage of it.

Something tells me that this trend isn’t over yet…which means you might have a chance to make some money on it too…

But that’s only if you know what it is and how the setup works…

How I Profit

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Understand, three out of four stocks follow the market.

I’ve been so successful recently because we’re on a hot streak.

Here’s a chart of Invesco QQQ Trust (NASDAQ: QQQ) since the beginning of 2023…

QQQ chart 10-minute candles

The market’s on fire right now. And that’s why I say it’s not too late.

Prices just broke out.

I’m ready for more spikers …

And to help you prepare, I’m going to break my most recent trade.

It follows basic support and resistance. Trust me, by the end of this letter you’ll understand

Let’s go …

Verb Technology Company Inc. (NASDAQ: VERB)

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This was the top ‘illegal-trade investigation’ stock yesterday.

It’s the most ridiculous trend I’ve seen in a while, but that’s what we get for trading crappy companies. It definitely doesn’t surprise me.

Yes, the companies are awful, but the opportunities to profit are predictable.

Remember, don’t get attached to these tickers, we’re just here for the money.

Basically, Genius Group Limited (AMEX: GNS) announced an ex-F.B.I. director would be investigating possible naked short selling of the company’s stock.

Here’s the press release.

And the ticker launched +800%.

Naturally, a move like that sent shockwaves through the market. All the other crappy little companies wanted to inflate their stock price too.

Here’s VERB’s press release.

And here’s a screenshot of my trade …

All my trades are on Profit.ly

This is what I saw …

Support set from this morning at $0.40 (represented by thee blue line).

I bought above support and sold into the bounce for a cool 7% profit (risked $3,022.50 in capital).

VERB chart 1-minute candles

And it’s the exact same pattern the other spikers follow in this sector …

Genius Group Limited (AMEX: GNS)

From the first day of GNS’s spike.

I didn’t trade it, but look at this hypothetical trade I drew on the chart …

There’s obvious support at $1.50 from earlier in the day. Buy above support, sell into strength …

GNS chart 1-minute candles

Hellbiz Inc. (NASDAQ: HLBZ)

Another stock investigating illegal trading.

Here’s the press release.

And here’s a theoretical trade from Friday that follows the same pattern …

Support from earlier price action. Actually a double bottom on the day. Buy above support, sell into strength …

HLBZ chart 1-minute candles

See what I mean?

It’s the same pattern, over and over again.

Yes I know, I’m missing the initial spike. But initial spikes can be dangerous and unpredictable.

The safest way to trade, in my opinion, is to wait for that volatile price action, and play the support/resistance levels on the back end.

Notice, these moves are quick.

That’s how I like it. I’m only exposed to the market for a few minutes. Then i sit in cash and wait for the next play.

But it also means I need the right tools to profit.

A Robinhood account won’t work.

Neither will Yahoo Finance.

I need up-to-date charts, and free software delays data by 10 – 20 minutes.

Sometimes my trades last less than 10 minutes … you see the issue?

I’ve presented you with a safe, reliable, and proven process to trade these volatile spikers.

All you need now is the right chart software to trade them.

I use StocksToTrade.

I helped develop it for my own strategies. So if you like what you just read … consider giving it a try.

Here’s a link to a 14-day trial.

To your success,

— Tim

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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”