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Trading Lessons

The Answers To Your Questions:

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Written by Timothy Sykes
Updated 5/2/2024 4 min read

There is A LOT happening.

I’m holding a trading live stream today for all of my Challenge students.

But I wanted to jot down some of the most important points in this blog to make sure we’re all on the same page. I was bombarded with questions yesterday.

There ARE profit opportunities in the stock market every single day. Those who don’t pay attention are sure to miss out. For example …

Yesterday we watched CytomX Therapeutics Inc. (NASDAQ: CTMX) spike 250%.

All of my students were alerted at 9:02 A.M. Eastern, before the market opened for regular trading hours.

You can see the alert on the intraday chart below:

CTMX chart intraday, 1-minute candles Source: StockstoTrade

>> This is where traders can find the next Breaking News alert <<

CTMX is still in play … But that doesn’t mean we can buy at random.

A lot of my students have questions about this runner … And it’s not the only stock on the move.

On Tuesday we learned that the U.S. Government was reportedly moving to reclassify marijuana from a Schedule 1 drug to Schedule 3. As a result, weed stocks popped off!

But these are volatile penny stocks. Traders need to approach these opportunities carefully.

I tried to answer all your questions below:

Question #1: “Should I buy CTMX?”

Let’s go over this runner.

See the notes in my Tweet below:

Source: Twitter

It’s possible that the stock continues to squeeze.

Share prices consolidated into the close. That’s a hint we could see a breakout in the future. But don’t bet the bank on it. This company is a piece of crap.

To keep my account safe, I play the volatility using the 7-Step Framework.*

Question #2: “What happened to the weed stocks?”

The weed sector is still hot.

But again, we can’t buy these stocks at random.

See my Tweet below:

Source: Twitter

New traders see a stock spiking in the market and they’re greed usually pushes them into a bad position.

Fear and greed rule the market. If you give in to those emotions, you’ll end up on the wrong side of this momentum.

90% of traders fail because they don’t know how to turn off their emotions. Like the overaggressive short sellers that create these massive squeezes.

And that leads me to the third question I was asked:

Question #3: “Why do you hate on short sellers?”

I’ve been in the industry for over two decades.

And I used to be a short seller. I switched my strategy because the short selling strategy became overcrowded. We started to see crap stocks spike hundreds and thousands of percentages because short sellers kept trying to guess the top.

I don’t hate short sellers … A lot of my scorn comes from trying to persuade them to see the light. They’re stubbornly shorting a giant squeeze and blowing up their accounts when they could buy the momentum instead.

But I’m one voice in a market full of degenerates. Most of my criticism falls on deaf ears.

See my Tweet below:

Source: Twitter

As a trader, continue to push forward in this market.

But make sure you’re operating with the correct information.

Every week there are new profit opportunities, like the 250% spike on CTMX.

Bide your time and wait for the perfect setup.



*Stock trading is inherently risky.

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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”