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Breaking Down Bryce’s $1 Million Milestone Trade

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Written by Timothy Sykes
Updated 2/2/2023 6 min read

Social media is littered with traders who love to brag about their home runs.

They post their wins with snarky quips about how great they are.

But if you look a little deeper, you’ll find out that these same folks rarely show their losses.

If that sounds sketchy, then you’ve got the right mindset.

Everyone should be skeptical of the claims people make on the internet.

Thousands of promoters scam people each year, duping them into trades with FOMO.

Don’t take anything I or anyone else says at face value.

Make people PROVE their claims.

During Monday’s All-Day Market Mastery Webinar, hundreds of people watched Millionaire Challenge student Bryce Tuohey hit $1 Million in trading profits.

The trade, and our mini-celebration, all happened LIVE!

Now, you may not know this, but Bryce has been close to that million dollar mark for a long-time…almost a year!

I’m so proud of his patience and dedication.

He took the lessons from the Millionaire Challenge and applied them every day, one trade after another, until he achieved his goal.

A lot of folks think that he must have some secret read on the market or a special skillset that only experience teaches you.

However, I want to walk you through his Genius Group Ltd. (AMEX: GNS) trade to demonstrate how my teaching core principles can be applied to a simple setup.

Here’s how it works.

News You Can Use

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I’ve said it before, and I’ll say it again…

If you want to trade penny stocks, you need to pay attention to the news.

How else would you know why a random biotech is up +100% in the premarket?

For my money, I rely on our StocksToTrade Breaking News Team.

These guys curate the headlines down to bite-sized pieces on the stocks that traders care about.

So, it wasn’t surprising that they were on top of this crazy trend we’re seeing right now.

Company after company put out press releases saying they planned to go after ‘illegal short sellers.’

You can read about it here.

I’m skeptical there’s any meat to this story or that it’s as widespread as they make it out to be.

More than likely, these companies are using the press to scare shorts and jack up the share price.

And they’ve been pretty darn successful.

It’s helped stocks from Global Tech Industries (OTC: GTII) to Hellbiz Inc. (NASDAQ: HLBZ) run hard and fast.

This fits in nicely with the front end of my 7-Step Penny Stock Framework, where promoters and press work to pump shares.

The key is to find the setup that aligns with this part of the blueprint.

Bullish Consolidation

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While panic dip buys are my favorite setups, Bryce likes to play bullish consolidations for breakouts.

They’re not wholly different from what you’re probably familiar with.

The key is Bryce plays these only when they occur in the early phases of a supernova.

If you look at the chart of GNS over the last 15 days, you can see the pattern form.

After a nice initial run, shares traded in a narrowish range but held their gains for the better part of a week.

This lured in short-sellers, creating another potential short-squeeze.

So, when the stock broke higher in the premarket on Monday, the punch through the recent highs seemed highly likely.

Playing the Breakout

Digging into the Monday price action, we can see the early morning ramp that came close to the recent highs.

From there, shares pulled back, creating a nice panic dip buy opportunity, though not a huge one.

As the morning rolled on, volume suddenly spiked, sending shares into a limit halt up, or a +10% move in less than 5 minutes.

At that point, the stock was clearly looking to break over the premarket and recent highs.

As a trader, you had a few options to enter this trade.

First, you could have bought the panic dip against the lows. That would have required watching level 2 data to make sure there was enough buying pressure.

Second, the sudden move could have been bought. However, it wasn’t a strong signal and you would need to be quick.

The third, and easiest way, is to wait for the breakout over the highs on volume.

That might seem risky to some folks.

But if you apply the lessons I teach my Millionaire Challenge students, then you’ll learn to cut losses quickly.

So, if the trade doesn’t do what you want in short order, then cut it loose.

Far too many traders make things more difficult than they need to be.

Let me show you how to simplify things and get you on the right side of the trade.

Sign up today for my Millionaire Challenge.

–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 (205) 851-0506 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”