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The Bubble Talk Is Loud. These Stocks Are Louder.

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Written by Timothy Sykes
Updated 10/23/2025 6 min read
The Bubble Talk Is Loud. These Stocks Are Louder. Thumbnail

Everywhere I look right now, there are fears of an AI market bubble.

From last week:

  • The IMF and the Bank of England both expressed concerns about an AI bubble.
  • Excluding data centers, the U.S. GDP only grew 0.1% in the first half of 2025.
  • AI investments are growing increasingly circular. For example, NVIDIA invested billions in Open AI only for Open AI to use that money to buy more NVIDIA chips.

Are we staring an AI bubble in the face?

When will it pop?

How much damage would an AI bubble pop do?

I’m not worried about a bubble burst or a market crash.

As a trader, my account sits in cash until I’m ready to make a trade. That limits my exposure to the overall market.

And it ensures I have funds in reserve to play the biggest runners when they show up.

Recent Examples

Last week, on Thursday, October 9 during after hours, ESS Tech Inc. (NYSE: GWH) announced an agreement to start Project New Horizon, a new battery system in Arizona.

The stock spiked 180%* into Friday as a result of the news.

This is an AI energy play. Despite larger market uncertainties, small-cap stocks are still soaring higher with AI-related catalysts.

Look at the price action below. Every candle represents one trading minute:

GWH chart multi-day, 1-minute candles Source: StocksToTrade
GWH chart multi-day, 1-minute candles Source: StocksToTrade

And GWH is far from the only runner right now …

Also last week, on Friday October 10, ScanTech AI Systems Inc. (NASDAQ: STAI) announced a $50 million investment from ARC Group International Ltd., a global financial services firm.

The stock spiked 100%* that morning as a result.

On the STAI chart below, every candle represents one trading minute:

STAI chart multi-day, 1-minute candles Source: StocksToTrade
STAI chart multi-day, 1-minute candles Source: StocksToTrade

This is the process that I use to trade these insane stock spikes.

Make sure that you’re ready for the next AI runner… 

What To Look For

We’re still paying attention to the larger market.

The momentum can trickle down to our small-cap sector and influence our favorite plays.

A full-blown market crash would affect our favorite stocks.

But I’m not waiting for CNBC to announce catalysts or declare a crash … 

The larger market media covers stories that pertain to the markets as a whole. But when it comes to our trade setups, we have to do the work on our own to get ahead of the crowd.

Here’s my process:

Every day, there are new runners in the market as companies announce bullish news.

My goal is to find the strongest runner with the most convincing catalysts. Those are the stocks that give me the best chance of success.

And to ensure that I show up in time to trade, I wait for alerts from the Breaking News scanner.

In the StocksToTrade platform, we get alerts when stocks announce bullish news that could spike the price.

You saw the news alerts on the StocksToTrade charts above, for GWH and STAI.

Watch the video below for a tutorial on how this system works. And how I use it to trade.

More Breaking News

Once I find a strong stock, with a news catalyst, I look for specific patterns in the price action …

My Trade Patterns

This price action is not random.

Let’s use Friday’s runners as examples …

Look at the charts below again:

GWH chart multi-day, 1-minute candles Source: StocksToTrade
GWH chart multi-day, 1-minute candles Source: StocksToTrade
STAI chart multi-day, 1-minute candles Source: StocksToTrade
STAI chart multi-day, 1-minute candles Source: StocksToTrade

This volatility can be dangerous for traders who don’t have a plan …

That’s why I use a specific framework to trade these kinds of stocks. 

As you can see above, there are moments of intense volatility as the stock reaches key psychological levels, like a breakout over past resistance.

The key is to recognize patterns like the breakout BEFORE it happens.

And I’ve got a process for that.

It’s the same process that all my millionaire students use to trade.

On October 21 and 22, I’m going live with multiple students to show you this entire process in real time.

You’ll learn:

  • My entire trade process from front to back.
  • The patterns that work best in this 2025 market.
  • The stocks I’m watching right now.
  • How to trade with self-sufficiency.

Reserve your spot now!

These virtual conferences don’t come around every week …

Take advantage of this opportunity to learn my entire trade process. And apply it as we head into a volatile 2025 Holiday season.

Cheers

 

*Past performance does not indicate future results

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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.
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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”