Trading Lessons

Crazy Stock Spikes Right Now!

Written by Timothy Sykes Reviewed by Jack Kellogg Fact-checked by Ellis Hobbs

Updated 3/21/2025 3 min read

Crazy Stock Spikes Right Now! Thumbnail

The market is still consolidating near the lows after its selloff earlier this year …

On the Invesco QQQ Trust (NASDAQ: QQQ) chart below, every candle represents one trading day:

QQQ chart multi-month, 1-day candles Source: StocksToTrade

But I’m more interested in the market’s truly profitable stock movements …

Like the 1,000%* spike on Impact BioMedical Inc. (AMEX: IBO) last week.

Or the 1,400%* spike from Regencell Bioscience Holdings Limited (NASDAQ: RGC) already in March.

Look at their respective charts below, every candle represents 5 trading minutes:

IBO chart multi-day, 5-minute candles Source: StocksToTrade

RGC chart multi-day, 5-minute candles Source: StocksToTrade

We can trade this volatility.

It’s not a random anomaly. There are stock spikes like this every week.

The Next 1,000% Stock Spike

These spikes are short squeezes.

That’s the first thing that you need to know.

It looks like there are a ton of people making money as the price spikes upward. But in reality, it’s mostly short sellers getting blown up.

The price action is still profitable for long-biased traders. But we have to approach the setups carefully.

Ultimately, the stock will sink lower. Short sellers have the right thesis but the wrong execution.

We want to take advantage of the bullish momentum while it lasts.

How To Trade These Runners

tim sykes in arizona riding on a jeep — © Millionaire Media, LLC

Traders find key areas to enter and exit a stock by analyzing the past price action.

The charts will show us obvious levels of support and resistance that we can use to build smart positions.

For example, last week IBO bumped against the $5 level twice, during after hours and premarket, before breaking through that level for a full $1 per share gain during regular hours.

Look at the chart of IBO below with the resistance line drawn in. Every candle represents one trading minute:

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

There are trade setups like this every week.

It’s not rocket science. But it does take some time to gain the right experience.

Starting today, get my trade alerts sent directly to your phone!

Track my trading process this week and you’ll notice the strategies that my students and I use in the market …

Stop sitting on the sidelines! Get involved!

Cheers.

*Past performance does not indicate future results

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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”