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Trading Lessons

Huge Catalyst This Week!

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Written by Timothy Sykes
Updated 8/9/2024 5 min read

Even during a sketchy market, like the one last week, there were STILL opportunities to profit!

A lot of traders get scared when they see panic in the market.

There’s no need to get stressed out … 

As traders, our money isn’t exposed to large market swings. We only take on risk when we see a trade that’s too good to miss.

And last week, during the larger market crash, I was still trading the same setups that I’ve always traded. Take a look at my profits from last week below:

Source

There were some losses along the way. But here’s the key, I keep my losses smaller than my gains.

Plus, I’m not trading all day every day.

You don’t need to be a slave to the market if you want to profit … I’m still living my life!

See my post on X below:

And I’m not the only trader pulling profits right now.

Take a look at my student’s post below, and congratulate him on crossing a MAJOR trading milestone this week …

Source

This is the trade alert that we got for last week’s LUMN spike.

Make sure you’re prepared before the volatility this week …

There will be more opportunities to profit. Especially because of the BIG upcoming market catalyst this week.

The Next Market Swing

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You probably noticed the market crash last week.

If you’re still confused about it: This is my blog post detailing the causes.

But this is a whole new week …

And there’s an incoming catalyst that could cause a market resurgence OR another selloff.

On Wednesday, August 14, at 8:30 A.M. Eastern, the market will learn the CPI data for the month of July.

The Consumer Price Index (CPI) is a popular way of measuring inflation in the U.S. … And any data that shows cooling inflation will likely act as a bullish catalyst for the market.

It could lead to a sizable interest rate cut from the FED. That’s what we want!

The market wants lower interest rates because it makes it less expensive to take out loans and expand business operations.

Lower interest rates could cause a HUGE bullish explosion of stock market volatility. But first we need confirmation that inflation is cooling.

In July, we learned that June’s CPI measured 3% … See the chart below showing monthly CPI data for the U.S. :

Source

Our goal as an economy is to bring the CPI number between 2% and 3% … Last month’s 3% CPI was really close.

Get ready for Wednesday.

How To Trade

artificial intelligence stocks what to expect
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We’re still playing the exact same setups.

My trading patterns don’t change …

But the strength of the market will determine whether we should trade aggressively or approach these plays with more caution.

Follow along this week LIVE as we map out the hottest profit opportunities in a market that’s on high alert.

We’re not trying to predict which way the market will run. Instead, we react to the volatility on the hottest stocks.

Plus, new traders can use our AI trading bot to track these trade patterns on the hottest stocks!

You’re not alone in this market, I’m here to help.

Use the tools at your disposal!

Cheers.

 

*Past performance does not indicate future results

 


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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

* 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”