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Trading Tips-Tim Sykes Penny Stock

Day Trading Examples: How to Trade, Books, & Top Strategies

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Written by Timothy Sykes
Updated 8/25/2021 17 min read

I think one of the best ways to better understand day trading is through examples…

Day trading is hard. That’s why I spend so much time teaching.

My Trading Challenge has over 7,000 video lessons showing real-world examples of day trading. Including my own.

The Challenge mentors and I show ALL of our trades. We host webinars several times a week to give newer traders examples of how we trade.

Once you become a self-sufficient trader, you can rely more on your own examples. That’s what experienced traders do.

Personally, I review every trade I make. And I almost always learn something.

But when you’re just starting with day trading, you need to take lessons from other traders and look at as many examples as you can.

So, let’s get started and dig into what is considered a day trade.

New to day trading and penny stocks? Access my FREE online guide here.

What Is Day Trading?

tim sykes in sedona arizona with laptop of stock chart
© Millionaire Media, LLC

Day trading is exactly what it sounds like — very short-term trading.

A day trade can be a trade that’s completed in minutes or hours.

Most day traders look to complete their trades within the day. Some may occasionally hold overnight. Technically, that’s a swing trade. The list of day trading strategies is long and varied.

Some day traders use a scalping strategy. They profit off minute price swings, often with big position sizes.

I don’t love this strategy for small account traders because I don’t see a clear path to exponential growth.

Others trade chart patterns like breakouts. They sometimes go for home runs … and strike out just as often.

Me? I like to trade just a few patterns for small gains. That’s how I’ve earned $7.1 million over my trading career.*

Check out this morning panic dip buy day trading example:

LCLP penny stock chart
Life Clips Inc. (OTCPK: LCLP) July 20 chart, 1-minute candles — courtesy of StocksToTrade

LCLP was trading at sub-penny levels a week before this trade. Then it got into crypto and hit a high of 6 cents!

You didn’t have to be a genius to know it wouldn’t hold. It topped my crypto penny stock watchlist after it ran on July 14 and 15…

I didn’t trade its spikes. Instead, I waited for it to panic, then bounce back up.

I dip bought these panics for profits of $599, $690, $1,970, $749, $584, and $708*…

And finally, there’s the 9% bounce for $845 I made on the minutes-long trade above.*

Say it with me: small gains add up.

How Many Day Trades Can You Make in a Day?

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Among the questions new traders ask the most, “How many trades can you make in a day?” is right up there with “How much does the average day trader make?”

I don’t like either. If you’re making a lot of trades, you’re probably not putting enough thought into each one.

Successful traders watch more stocks than they trade. One of the biggest problems beginner traders experience is randomly trading stocks…

If you’re not watching the stock, identifying chart patterns, or building a trading plan, you’re randomly trading.

Even if you made money trading this way, that’s a bad habit. So much so that FINRA created the PDT rule to prevent newbies from blowing up their accounts.

The PDT (pattern day trader) rule limits small account traders to three leveraged day trades each week.

If you exceed this limit, you risk a 90-day day trading ban.

It’s not great for growing your account quickly … but it does force you to become selective about your trades. And that’s definitely a good thing.

Some day traders under the PDT will occasionally hold a trade overnight. This prevents the trade from counting against the three-trade limit…

And it can be an effective strategy on its own! Learn more about swing trading here.

Day Trading Examples

sykes and kyle williams on laptop
© Millionaire Media, LLC

The morning panic dip buy is my go-to pattern. It’s been a profitable pattern for me for over two decades.*


Some traders take profits at the market open. With volatile penny stocks like LCLP, this torrent of selling sends the price down…

As the stock price falls, it triggers stop-loss sales. This sends the price down even further…

It’s tricky to time the bottom of a morning panic. You don’t need to nail it perfectly. Get in screen time and hone your Level 2 skills. You’ll begin to see where the momentum shifts.

I try to time my entries for this point. I also pay close attention to risk. If the stock doesn’t bounce, I cut my losses quickly…

But if it does, I sell on the bounce before the stock price stabilizes. I aim for quick profits of 10%–20%.

This is a great pattern for me because I travel and am often in time zones hours ahead of the U.S.

Look at this day trading example I pulled off from an airplane Wi-Fi connection…

INCC penny stock chart
International Consolidated Companies Inc (OTCPK: INCC) July 16 chart, one-minute candles — courtesy of StocksToTrade

I got in at 0.59 cents and out at 0.66 cents — almost a 12% gain!*

Trading at the market open is a great way for me to get in some trades without staying up all night.

That doesn’t mean I’m on vacation. My trading strategy is heavy on studying and precision. That’s how I want you to be too.

Top Day Trading Strategies with Examples

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Day trading isn’t about picking ‘hot’ stocks or finding the ‘best’ patterns…

If it were that simple, do you think experienced traders would ever lose?

I’ve got news for you — EVERYONE loses. The Twitter traders who say they don’t lose are LYING.

I created my Trading Challenge to teach traders the lessons I learned the hard way.

There’s no shame in losing trades. I learn from my losses, and I want you to learn from them too. That’s why I show every trade I make on Profit.ly, the trade-tracking platform I helped create.

The only shame in trading is not putting in the work — especially if you want the success opportunities day trading has to offer.

I designed my Trading Challenge to make it easier for you. There’s a 60-lesson course to get you started…

You’ll also get webinars with a ton of day trading examples. They’re hosted by top traders like Tim Grittani, Mark Croock, Michael Goode, and of course myself…

Plus, you can access arguably the best chat room on the internet and 7,000 video lessons to help you catch up with the rest of my hard-working students.

I don’t accept everyone.  If you’re looking to get rich quick, you’ll need to find your tips elsewhere…

But if you want to put in the work and learn the RIGHT way … Apply for the Trading Challenge today!

Plan Your Entries and Exits

You must plan your entries and exits. This is the scientific name for buy low, sell high. It’s the biggest difference between profits and losses.

Don’t guess bottoms and tops, that leads to FOMO

Even if you manage to nail a best-case entry and exit on a trade or three, it probably won’t be sustainable. That’s why I created the 7-step pennystocking framework:

OPTI stock chart
Optec International Inc. (OTCPK: OPTI) one-year chart, daily candles — courtesy of StocksToTrade

I’ve used this framework to trade penny stocks for 20+ years. It hasn’t changed.

Each number on the chart refers to a different entry. The exit varies for every trader.

To use this framework, look at the stock’s history of running, the quality of its catalyst, and a few other indicators. It goes like this:

  • Step #1: The Pre-Pump or Promotion
  • Step #2: Ramp
  • Step #3: Supernova
  • Step #4: Cliff Dive
  • Step #5: Dip Buy
  • Step #6: The Dead Pump Bounce
  • Step #7: The Long Kiss Goodnight

The panic bounces I outlined above are the day trading example of Step #6.

And they don’t just work with penny stocks. Check out top trader Jack Kellogg’s day trading example from GameStop Corp. (NYSE: GME) earlier this year:

GME chart
GameStop Corp. (NYSE: GME) March 10 chart, one-minute candles — courtesy of StocksToTrade

The green arrows show Jack’s entry and exit using Step #5. He dip-bought an intraday panic for $107,000* … Then he used Step #6 to rack up a $100,000 profit.*

Jack’s a master trader. He’s made $7.9 million in his trading career — most of it in 2021!* Don’t attempt to copy his strategy … Just know what’s possible with smart entries and exits.

Trade High-Volume Stocks

Volume’s critical when day trading. If a stock isn’t trading high volume, you won’t be able to get in and out where you want.

This is especially important for OTC stocks. These stocks can make big moves, but a lack of volume means your order might not get filled.

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If you want to grow your account, you need to scale into bigger position sizes. Remember that LCLP chart above? To make my $845 profit*, my position size was 325,000…

The stock traded nearly half a billion shares, and my order was still just partially filled! Only trade liquid stocks.

Use Technical Analysis

Technical analysis focuses exclusively on price and volume. This is what you care most about in day trading.

Other things matter too, which is why you should always research the stocks you trade…

But you’re not holding these stocks for long. So you need to see what they’re capable of doing today.

What Are the Best Day Trading Software and Apps?

Tim Sykes studying and trading
© Millionaire Media, LLC

If you’re still using the Robinhood app for your day trading, read this section closely.

Trading is a battlefield. Use inferior equipment at your own risk.

If other traders have better charts, screeners, and news scanners than you … that means they’re getting into — and out of — trades faster than you.

In day trading, speed matters. Skip this step, and you’ll pay for it later…

For me, the best day trading platform is StocksToTrade.** It was designed by day traders … I even had a hand in it myself!

StocksToTrade has all the features I want in a trading platform. StocksToTrade gives you the advantages I wish I had when I was starting out.

Its features include:

  • Clean charting
  • A news scanner to help you spot catalysts
  • 40+ built-in stock screeners
  • Add-on services to help you hone your edge

Start the first 14 days of the rest of your trading life for only $7.

Day Trading Books

Don’t just learn from me. Every great trader has a different perspective. Here are some of the greats:

(As an Amazon Associate, we earn from qualifying purchases.)

If you want to learn what I had to learn the hard way, read my trading story for no cost: “An American Hedge Fund.”

And of course, there’s my student Jamil’s take on my pennystocking course. He took my strategies and organized them into an awesome book: “The Complete Penny Stock Course.”

If you get through all of that, there’s always more to learn.

Frequently Asked Questions About Day Trading

There’s no substitute for experience. But you can trust me on these…

Is Day Trading Difficult?

It isn’t rocket science … but so many traders lose because they don’t put in the effort. I’ve been day trading for 20+ years, and I still have more to learn. Chances are you do too.

What Is the Best Market for Day Trading?

I like the OTC markets — which aren’t really markets at all. There are no market makers or investment firms … It’s just you, your patterns, and a few million greedy traders.

Can You Start Day Trading With $500?

This amount would make exponential trades harder without risking your entire account. But at the start, trading small isn’t a bad thing. It will give you time to hone your strategy before taking it to the next level.

Day Trading Examples: The Bottom Line

In day trading, there’s a lot to learn. Take the time to study and look at the examples of experienced day traders.

That’s why I created my Trading Challenge. I want to show you that it can be done if you focus on the right things.

Part of my Challenge includes lots of day trading examples and lessons — it’s how you can work to improve step by step.

What did you think of this deep dive into day trading? Did you learn anything? Let me know in the comments — I love hearing from my readers!


*This level of successful trading is not typical and does not reflect the experience of the majority of individuals using the services and products offered on this website. From January 1, 2020, to December 31, 2020, typical users of the products and services offered by this website reported earning, on average, an estimated $49.91 in profit. This figure is taken from tracking user accounts on Profit.ly, a trading community platform. Timothy Sykes has a minority shareholder interest in the platform. I’ve also hired Tim Grittani, Michael Goode, Mark Croock, and Jack Kellogg to help in my education business. 

**Quick disclaimer: I helped design and develop StocksToTrade.

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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”