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Have You Noticed This Crazy Trend In The Market?

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Written by Timothy Sykes
Updated 6/20/2023 6 min read

The shorts are about to get wrecked.

And it’s all because of this crazy new trend I see in the market.

If you’re a newbie trader, you’ll think it’s weird.

It’s weird for me, too, and I’ve been at this for over 20 years.

But there is some massive opportunity once you’re made aware.

You’ll be shocked at what it is.

Short-Sellers Are Screwed

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I started trading during simpler times.

You see, back in my day, for a stock to go Supernova…it required a strong catalyst.

You know…like some breaking news that made the company better, legitimized it, and made people believe it has a bright future.

Don’t get me wrong…promoters were still pumping stocks back then…

But again…

Some effort needed to be made.


Take a look at this:

Pretty wild, right?

Ticker symbol AHI went full-blown Supernova on NOTHING.

Shares of AHI $0.30 to $3.88 in just two days.

Pretty amazing, right?

Typically a move like that was reserved for stocks that had epic catalysts…

But not anymore.

What’s causing these random Supernova spikes?

Dumb & Dumber

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Two forces at work are creating these weird random spikes.

  1. Chat Room Pumpers
  2. Stubborn Short Sellers

After all, with what’s happened with Atlas Trading, you’d think people would know better than to run shady Discord chat rooms.

But you’d be shocked at the level of stupidity in this industry.

Typically these chat rooms look for stocks that have a low float. But that is not always the case.

But here’s where it gets interesting.

Most chat room pumps fizzle out on their own.

However, stubborn shorts are seeing these stocks pump and getting overly aggressive.

Often, shorting on the first green day…a major no-no in my book.

So…by getting overly aggressive…these shorts are turning these turd stocks into full-out Supernovas.

I know…it’s wild.

But that’s exactly what’s happening right now.

How This Changes The Way I’m Trading

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Most short sellers are new to the market.

They have no clue how dangerous the strategy is.

Now, we’re seeing stocks explode off no news.

Short sellers have become the new promoters.

They all huddle up, wishing and praying for the worst to happen. ‘

It’s sick if you ask me. I know I often say to expect the worst from these companies.

But short sellers WANT the worst to happen. They HOPE for the worst to happen.

There’s just something wrong with having such a miserable outlook.

Short sellers have become the new promoters.

They try to justify their arguments with the “fundamentals.”

That’s funny.

Fundamentals don’t matter when you’re trading short-term.

Short-term trading is all about taking advantage of quick inefficiencies in the market…like my panic dip buy strategy.

But not only is the short seller’s logic BROKEN.

What really disgusts me about them is their blatant disrespect for risk management.


Look, I get it.

Most of these companies are crap…and it’s absolutely outrageous that a stock like AHI went from $0.30 to $3.88…

But you know what?

It’s also absolutely outrageous to short it at $2 …even if it’s up for a completely bogus reason.


Because the risk outweighs the reward. 

The main reason I’ve been able to succeed for all these years is that I’ve cut my losses quickly.

When you’re short-selling, you always risk more than you can make.

I can’t tell you how many horror stories I’ve heard of traders losing six and seven figures on a single trade.

I know because some of them were my students.

I always warn them that short selling is risky and that you need deep pockets if you want to win.

I don’t recommend it to anyone because it requires an enormous amount of capital and experience.

Final Note

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I actually don’t hate short sellers. In fact, I’m grateful for them. Without them, the markets wouldn’t be as exciting.

Their stubbornness creates one opportunity after another.

That’s why I’m open-minded and watching how the price action unfolds more closely.

Don’t be so quick to dismiss ideas because you have some preconceived notion about a symbol. That’s what shorts are doing, and you see how it’s getting them in trouble.

If you’d like to learn more about how I trade Supernovas, check this out. 

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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 (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”