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December Trading: How To …

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Written by Timothy Sykes Reviewed by Jack Kellogg Fact-checked by Ellis Hobbs
Updated 11/29/2024 6 min read
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It’s Tim Sykes here.

Welcome to the final month of 2024.

The Holiday season is always ripe with volatility. And in this red-hot 2024 market, every day that you don’t pay attention is a missed opportunity.

There was a perfect trade setup on ParaZero Technologies Ltd. (NASDAQ: PRZO) yesterday, these drone stocks are going NUTS right now.

I’m here to point you in the right direction.

With my guidance and help from the Challenge community, you’re in the best position to profit!

Take a look at the posts below from other traders like you:

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Pretty cool motorcycles …

And it’s even cooler that Derrick gets to live his dream life! That’s what this is all about. That’s what I want for YOU!

There are profit opportunities today, all month long, and next year …

So let’s get to it!

Drone Stocks

At any given moment in the market, some stocks are more likely to spike than others.

In 2023 and 2024, AI stocks offered some of the most explosive opportunities.

But we also saw shorter sector momentum like the recent spike among Bitcoin stocks.

Traders who show up everyday will notice these trends on their own. Until then, I’m here to show you the ropes and to keep you informed.

One of the hottest sectors right now are drone stocks …

  • The conflict between Russia and Ukraine is escalating as new weapons enter the battlefield.
  • Israel’s struggle against Hamas and its allies continues.
  • The shifting U.S. Presidency is causing uncertainty in the global theater.

Plus, Elon Musk, Trump’s newest friend and ally is posting drone content on X. See the posts below:

We saw drone stocks spike when Russia initially invaded Ukraine and when Hamas struck Israel.

And the increased global tension as of late is causing these stocks to spike again.

On Friday, ParaZero Technologies Ltd. (NASDAQ: PRZO) spiked 170%* higher. (Notice that the stock launched 460%* when Hamas struck Israel in October 2023 … )

On the chart below, every candle represents one trading day:

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

And PRZO isn’t alone …

These are some more drone stocks on the move right now:

  • Unusual Machines Inc. (AMEX: UMAC) spiked 910%* in November.
  • Zena Tech Inc. (NASDAQ: ZENA) spiked 770%* in November.
  • Ondas Holdings Inc. (NASDAQ: ONDS) spiked 75% in November.

But let’s take it one at a time …

We can trade these runners for a profit.

The most volatile stocks in the market like to follow popular patterns because people are predictable during times of high stress.

Like when they have shares of a stock spiking +100% intraday …

Trade-Setup Example

These stocks are NOT investment vehicles.

In the defense and technology sector, you’re probably much better off investing in a real company like Lockheed Martin Corp (NYSE: LMT).

But shares of LMT are more than $500 right now, and the intraday chart usually never moves more than a few percentage points.

That’s not a good stock for small-account traders like us.

We want cheap stocks that can spike +100% intraday. That’s how my millionaire students and I build wealth that we can then put into safer investment assets.

PRZO was a perfect trade opportunity on Friday because …

  • It was cheap
  • It had a catalyst in a hot sector
  • And it was spiking BIG.

Big enough for us to take the meat of the move without risking too much.

Take a look at the chart below of PRZO last Friday, November 29. Every candle represents one trading minute:

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

A double or triple bottom at $1.25 is a sign of strong support and an upcoming bounce.

Now, we can’t hold indefinitely. You’ll notice the price fell lower a few minutes later.

But that’s the beauty of this process. We only have to expose ourselves to the market for a few minutes at a time.

It might not look like much on the chart, but that bounce off of $1.25 is a 16% profit opportunity. In a matter of minutes.

That’s how we trade these runners: Calculated profits from popular trade patterns.

Understand that my newest students are using AI to follow these setups.

You don’t have to learn these patterns overnight …

Type in the hottest stock in the market and my AI will spit out a trade plan as if you asked me directly.

Don’t miss the next setup!

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”