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The Best Penny Stock Trends Right Now

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Written by Timothy Sykes
Updated 11/9/2023 8 min read

Several of my students have been crushing it lately…

What are they doing so differently from the majority of traders who lose?

They’re taking advantage of the hottest trend in penny stocks.

If you have no idea what I’m talking about…you’re in luck!

Because today I’m going to share with you what it is and how you too can potentially take advantage of it.

The Best Trend In Penny Stocks

Yesterday I sent out this tweet:

It’s what I believe is the best way to trade penny stocks in this current market. And today I’m going to get into more detail explaining why I think that is.

Taking Advantage Of A Trend I Popularized

top penny stocks list Tim Sykes on a cliff in Italy with a laptop
© Millionaire Media, LLC

Shorting stocks is nothing new…

If you ever read the book Reminiscences of a Stock Operator then you know they were shorting stocks in the early 1900s.

However, I’d like to think I’m someone who popularized shorting penny stocks in the early 2000s.

It was such a brilliant strategy…find the scummiest companies being promoted…aka pump and dumps…and wait for the right moment to short them.

It worked well…and it was largely responsible for my first million in trading profits.

For me, it was always easier to find crappy companies to short than good companies to buy.

But you know what?

It’s not something I do anymore.

Why?

Because shorting crappy stocks has gotten severely overcrowded. In other words, too many traders are doing it.

In fact, the risk vs. reward dynamics have shifted dramatically. It actually makes sense to buy these stocks than to short them.

I know…it’s wild…but that’s how markets work.

We have seen one epic short squeeze after another this year.

Just check out what happened in the ticker LIFW:

Source: etrade

I was trading this thing in the $1s when I first realized it was a short squeeze…but it eventually went to $17+…crashed…and had another spike in the $11s.

Why Are We Seeing This?

#1: Short sellers are narrow minded. They mainly use logic. Which works great if you’re an investor. However, you need to consider risk management as a trader. If you shorted LIFW at $5 can you absorb a move to $17? Most traders can’t. You need to consider the price action and look at other factors.

Just because a stock is bleeding capital and they’re likely going to have to do an offering in the future…doesn’t mean the stock can’t rip $10 in your face.

#2: Short sellers can’t adapt. At the end of the day the short seller is right. The stock will eventually fail. But can they absorb the squeeze before the stock tanks? Traders like myself know this…and our buying pressure along with their stubbornness is what’s creating these squeezes.

What Stocks Should You Be Looking For?

tim sykes and kyle williams on laptops
© Millionaire Media, LLC

This will probably blow your mind. It’s actually the worst stocks.

Why?

That’s where all the shorts will be crowding.

When a play looks so bad…it lures in so many shorts.

The worst plays can be the biggest spikers.

What’s Really Working Well?

Look for these setups as the stocks are hitting the high of the day…these breakouts are causing massive short squeezes.

Source: etrade

Also, avoid buying the dip after the stock has experienced a sell-off. Remember, these are terrible stocks that never deserved to be up in the first place.

In the future, I’ll have AI tools that help you spot opportunities like these. In fact, in a few days I will be giving a demo of an AI product that can be a total game changer. To register, click here. 

Ready to Exploit the Market’s Wildest Moves? 🚀

© Millionaire Media, LLC

The penny stock landscape is shifting, and what used to be the “worst” plays are now becoming the best.

My students are living proof of the opportunities by going against the grain and leveraging the hottest current trends in penny stocks. 📈

🔥 While others are still playing by the old rules, we’re cashing in on the new ones.

🔥 Forget shorting the “scummiest” companies; now we’re learning why and when buying is smarter than selling.

🔥 The market is full of surprises, with stocks making unprecedented moves that defy traditional logic.

If you’re out of the loop, you’re missing out on potentially life-changing opportunities. But it’s not too late to get in on the action.

👉 Join my team for our next live training session where we’ll unveil the counterintuitive strategies that are making big waves in the penny stock world.

🚀 Learn why the stocks everyone loves to hate may be your ticket to trading success.

🚀 Understand the psychology driving massive short squeezes and how to profit from them.

🚀 Discover why the worst companies can offer the best breakout opportunities—and how to identify them.

 

We’ll show you exactly what to look for, how to time your trades, and why now is an incredible time to be a penny stock trader.

The best part? You’ll get to see these strategies in action and learn how to apply them yourself.

Are you ready to turn market chaos into your next big win? Want to stop following outdated advice and start capitalizing on the market’s most explosive trends?

 

Don’t watch from the sidelines. Get the knowledge to take on the market with confidence and join the ranks of traders who know how to make volatility work in their favor.

 

Your playbook for navigating the new penny stock trends is just a click away. Sign up for the live training now—spots are filling up fast!

 

👉 RESERVE YOUR SPOT TODAY and turn volatility into opportunity! 👈

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Author card Timothy Sykes picture

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”