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Patterns To Watch

Are These the Best 3 Trading Patterns Right Now?

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Written by Timothy Sykes
Updated 10/6/2023 7 min read

If last Friday’s reaction to the jobs number indicates the volatility ahead of us…

Buckle up.

And if you haven’t noticed by now, some of the setups that were working just a few months, even weeks ago, have gone limp…

You’ve got two choices.

Make the proper adjustments…or get steamrolled.

Lucky for you, I’ve identified the best three trading patterns right now.

Not only have they kept me safe, but also been profitable during this volatile stretch in the market.

Understanding the ‘Why’

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The three patterns I’m about to cover work right now.

Like everything else, they go through cycles.

To understand ‘Why’ a stock is trading well, I look at the most recent runners and ask myself just one question…

…What do they all have in common?

Once you can answer that question, you know which stocks to trade.

Pattern #1 – Patent Spikes

trading patterns types
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A well-timed patent news release can buoy investor sentiment and send a stock soaring.

With penny stocks, this could be the difference between life and death.

This is precisely what happened with AgriForce Growing Systems Ltd. (NASDAQ: AGRI) late Thursday.

Our Breaking News Chat highlighted this positive patent application news. Within minutes, shares ran like they were on fire.

This was just the latest in a string of these announcements.

A nearly identical run happened just a week earlier in Trevana (NASDAQ: TRVN).

The day before that, Near Intelligence (NASDAQ: NIR) delivered a whopping 148% run starting midday:

Clearly, there’s a pattern.

That’s why it’s so important to jot down the most recent runners and why they ran.

More Breaking News

For that, you’ve got to have a killer news service like Breaking News Chat.

Pattern #2 – Billionaire Investors

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People love to follow their heroes.

Heck, there are ETFs that track folks like Warren Buffet, Ray Dallio, and all the other big names in the investment world.

And watch what happens when news breaks that one of them took a substantial stake in company.

Even with large-cap names, you’ll get a bounce in shares.

So, when the same news hits for a penny stock, it can send shares through the roof.

Check out how Bionomics Ltd. (NASDAQ: BNOX) reacted when news hit that Steve Cohen took a stake in this low-float company:

And that’s just from a one day move.

When similar news hit Cybin (NASDAQ: CYBN), the stock went on a multi-day run that hasn’t stopped:

Pattern #3 – Short Squeezes

This one is a bit more nuanced so let me explain what I’m looking for.

Short squeezes happen when traders bet against a stock by selling it short.

That isn’t happening when a stock is trading at $0.30 or $0.10.

But if that same stock gets a push up a dollar or more and HOLDS, then it becomes an attractive opportunity for shorts, especially if the long-term chart is garbage.

The best example lately is Femasys Inc. (NASDAQ: FEMY).

The long-term chart here is terrible.

But once the stock jumped on heavy volume, short sellers began to pile in.

As they built positions, the potential for a squeeze grew since the stock had a tiny float of 11.9 million shares.

Sure enough, the thing exploded and blew their faces off.

The crazy part is none of these themes are anything new.

I remember trading billionaire investors and patent news over 20 years ago.

I’m always looking for short-squeeze opportunities.

History repeats itself time and again. You’ve just got to pay attention to what it’s telling you.

Ready to Profit from Today’s Hottest Trading Patterns? 📈

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Volatility might have thrown a wrench into your usual strategies, but that doesn’t mean there aren’t opportunities for profit. You just need to know where to look. And lucky for you, we’ve cracked the code.

🔥 Take advantage of surges like AgriForce Growing Systems Ltd. experienced with patent spikes.

🔥 Ride the wave when big names like Steve Cohen make moves in penny stocks.

🔥 Get ahead of the curve by identifying and capitalizing on short squeezes.

Why play a guessing game when you can trade with proven patterns?

🚀 Master the top 3 trading patterns that are thriving in today’s volatile market.

🚀 Get real-time analysis on how to spot these patterns and make them work for you.

🚀 Don’t follow the trends—set them by understanding the ‘Why’ behind every trade.

Are you prepared to navigate the market’s rough waters with a captain’s expertise? Your opportunity to trade smarter, not harder, is just a click away.

👉 CLICK HERE TO SECURE YOUR SPOT! 👈

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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”