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How To Prepare For An AI Bubble Burst

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Written by Timothy Sykes Reviewed by Jack Kellogg Fact-checked by Ellis Hobbs
Updated 10/23/2025 7 min read
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The market is on fire right now.

AI hype is fueling massive moves. And traders who notice this momentum early are cashing in BIG.

Yes, there are worries about a larger AI bubble.

Jamie Dimon, CEO of JPMorgan Chase, is very vocal about an upcoming market crash. Plus, this week the IMF and the Bank of England worried about a growing AI bubble.

Here’s my viewpoint of the situation:

I profited through the dot-com bubble burst and crash. If the AI bubble bursts, I’ll play the volatility like I always do.

My account sits in cash until I see a play to make. That limits my exposure to risk. And it ensures I don’t lose money on an uncontrollable market crash.

I’m not an investor. I’m a trader.

And in this volatile market, the opportunities are as big as ever.

I send daily trade alerts in my Telegram chat, and some of these stocks have already spiked +100% since I mentioned them.

Look at an example below. This is a chart of Datavault AI Inc. (NASDAQ: DVLT) with one day candles:

DVLT chart multi-month, 1-day candles Source: StocksToTrade
DVLT chart multi-month, 1-day candles Source: StocksToTrade

If you’re serious about catching the best trade setups in the market, you need to be in the chat.

Period.

You don’t have to be a genius to make these trades. My millionaire students and I use recurring patterns that we can see clearly on a stock chart.

Right now there’s so much opportunity:

  • Low-float runners.
  • AI sympathy plays.
  • Huge morning spikes.
  • Multi-day runners.

Stop sitting on the sidelines. You’re missing the hottest stocks in the market!

More Examples

The amount of winners I’m about to share might be overwhelming.

Trust me, there’s no way you’re more overwhelmed than me right now. I’m the one keeping track of all these runners.

Look at my post below:

Don’t get it twisted … I’m not complaining.

All of this volatility is perfect for me and my millionaire students. Look at some of the trade-alert wins from the last few weeks:

I alerted DVLT on September 25. And I alerted TMC the metals company Inc. (NASDAQ: TMC) the same day.

This is an AI and a precious metals play.

On the TMC chart below, every candle represents one trading day:

TMC chart multi-month, 1-day candles Source: StocksToTrade
TMC chart multi-month, 1-day candles Source: StocksToTrade

I alerted Mind Medicine Inc. (NASDAQ: MNMD) on September 26.

This is a mushroom medicine stock that has a history of running.

On the MNMD chart below, every candle represents one trading day:

More Breaking News

MNMD chart multi-month, 1-day candles Source: StocksToTrade
MNMD chart multi-month, 1-day candles Source: StocksToTrade

I alerted Tilray Brands Inc. (NASDAQ: TLRY) on September 29.

This is a cannabis stock that gained momentum alongside Trump’s bullish comments about CBD treatments.

On the TLRY chart below, every candle represents one trading day:

TLRY chart multi-month, 1-day candles Source: StocksToTrade
TLRY chart multi-month, 1-day candles Source: StocksToTrade

I alerted BitMine Immersion Technologies Inc. (AMEX: BMNR) on September 29 as well.

This is a crypto play during a red hot “Uptober”.

On the BMNR chart below, every candle represents one trading day:

BMNR chart multi-month, 1-day candles Source: StocksToTrade
BMNR chart multi-month, 1-day candles Source: StocksToTrade

I alerted Bitfarms Ltd. (NASDAQ: BITF) on October 1.

This is another crypto play in the middle of “Uptober”.

On the BITF chart below, every candle represents one trading day:

BITF chart multi-month, 1-day candles Source: StocksToTrade
BITF chart multi-month, 1-day candles Source: StocksToTrade

I alerted USA Rare Earth Inc. (NASDAQ: USAR) on October 1 as well.

This is an AI and precious metals play.

On the USAR chart below, every candle represents one trading day:

USAR multi-month, 1-day candles Source: StocksToTrade
USAR multi-month, 1-day candles Source: StocksToTrade

I alerted SEALSQ Corp. (NASDAQ: LAES) on October 2.

This is a semiconductor and an AI stock.

On the LAES chart below, every candle represents one trading day:

LAES multi-month, 1-day candles Source: StocksToTrade
LAES multi-month, 1-day candles Source: StocksToTrade

I alerted Nuburu Inc. (AMEX: BURU) on October 7.

This is a security and defense tech stock.

On the BURU chart below, every candle represents one trading day:

BURU multi-month, 1-day candles Source: StocksToTrade
BURU multi-month, 1-day candles Source: StocksToTrade

I alerted POET Technologies Inc. (NASDAQ: POET) on October 7 as well.

This is an AI related company that works to provide faster data transfers.

On the POET chart below, every candle represents one trading day:

POET multi-month, 1-day candles Source: StocksToTrade

Quit fooling around.

Get the next trade alert in my Telegram channel.

And to learn this process for good …

To trade runner after runner with self-sufficiency …

To join the ranks of successful traders …

Cheers

 

*Past performance does not indicate future results

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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.
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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”