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Are You Watching These 5 Stocks?

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Written by Timothy Sykes
Updated 3/3/2023 7 min read

If I were to ask you to explain why you would or wouldn’t buy one stock in 30 seconds or less…

Could you do it?

If you can’t, don’t stress, most new traders just starting their journey can’t.

In fact, when most of my millionaire students started trading, they couldn’t either.

Trading is about building confidence, and knowing what to look for.

As your mentor, I want to teach you the ropes…

So that’s why I am going to share with you 5 stocks I am currently watching…

And what my game plan is to help you see exactly what I am seeing.

So if you’re ready, let’s dissect why these 5 stocks are my favorite as we kick start this week!

OTC Plays

In the past month, the performance of OTC stocks has been somewhat underwhelming…

One day they are hot, the next they aren’t.

Nonetheless, I am going to remain vigilant and will continue to monitor them closely.

My watchlist is forever changing, one day you may have a stock on your list, and the next day you won’t.

That’s why it’s always important to always keep looking for stocks to add and remove from your watchlist so you’re up to date with some of the best opportunities.

Let’s dive into two OTC stocks that I am closely watching, and why…

Clean Vision Corporation (OTC: CLNV)

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CLNV chart 1-day candles Source: StocksToTrade

Looking at the chart, you can see every time CLNV spiked, there was a steep decline soon to follow.

I’m not saying you can’t go long with this stock, especially since the promoters are still trying to pump it up…

But it’s important to recognize how this stock has a lot of repeat patterns throughout its life cycle.

Given the behavior of this stock, I am going to watch for a potential dip-buying opportunity first thing in the morning, or intraday.

This next chart shows you there were a few solid dip buying opportunities to kick start last week…

CLNV chart 1-minute candles Source: StocksToTrade

But as the week progressed, the stock traded flat and there weren’t any ideal setups…

And the decrease in volume has resulted in choppy price action to end last week.

OTC stocks continue to run flat, so this is going to force me to trade a little bit more cautiously…

It’s important not to overstay or get too over-aggressive with these types of trades.

Make sure you are adapting and keep watching them because at any money OTCs could start to heat up again.

The next OTC stock I am looking at is American Battery Technology Company (OTC: ABML)

ABML chart 1-day candles Source: StocksToTrade

This was a recent one-day spiker that had a few lower volume days, but on Friday this stock was trending upwards nicely.

Take a look…

ABML chart 1-minute candles Source: StocksToTrade

Seeing a stock run like this into the close on a Friday really fits one of my favorite strategies…

And this could open the door for a solid panic during the week since it has broken through a multi-month resistance level.  

So as I wouldn’t be going long at this stock, so be sure you are always reviewing the whole chart.

Lower Priced Plays

Here are two lower-priced plays that I am closely watching…

Here you can see this stock has been beaten down over the last several months…

But over the last few days, it has started to trend upward.

Take a look…

Troika Media Group, Inc. (NASDAQ: TRKA)

TRKA chart 1-day candles Source: StocksToTrade

Notice there has been a significant increase in volume, which tells me the stock has caught the interest of other traders…

And to have an ideal morning panic, you need volume to help give you that quick move.

I teach all of my students how to read price action and how to identify potential support areas.  

That is what I usually look for, especially when a stock is dropping 10%, 20%, or more.

Now let’s take a look at one of my favorite stocks I am watching this week…

Desktop Metal, Inc. (DM)

DM chart 1-day candles Source: StocksToTrade

On Thursday I traded this stock, which I completely butchered.

I did let every single one of my students know, too, I am not ashamed of my mistakes.

Make sure you check out all of my trades right here 

The stock did exactly what I anticipated it to do…

But now right now there is a resistance level around $2.30, so I am going to look to see if it will have a solid break out like ABML…

Or is it going to get batted down at this multi-month resistance where short sellers are lurking.

This is why it’s so important to focus on Level 2 to see if there is a wall of sellers at that price…

And maybe if it does have a solid breakout, I could be interested in a possible long play.

Higher Priced Plays

The next stock I am considering is MMTec, Inc. (NASDAQ: MTC).

MTC chart 1-day candles Source: StocksToTrade

This recent Supernova has the ability to spike, and with the January Effect still in play, these batted-down stocks can still make a move.

On Friday, the stock dropped a little, but there wasn’t much volume there to warrant a dip buy as the price action was too choppy.

Since the stock has already moved over 100% from its lows, I am going to expect it to pull back eventually…

So I’ll be waiting for a potential panic and hope there is enough volume to get the bounce that I typically look for.

Weekly Reminder

Keep in mind that having a stock on your watchlist does not necessarily mean it will lead to a trade.

Try to avoid the urge to force a trade when the opportunity simply isn’t there.

The morning panic is one of my favorite strategies, but so is this…

So keep practicing on how you could spot these stocks that may eventually panic…

Because the better you are at spotting them, the better off you’ll be!

Keep studying and practicing…

I’ll see you here tomorrow!

-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 (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”