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Trading Tips-Tim Sykes Penny Stock

How To Dip Buy Multi-Day Runners

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Written by Timothy Sykes
Updated 11/18/2022 6 min read

Never take a stock off your watchlist after a big run.

That would be a HUGE mistake.

Just because it’s up 100%, 200%, or even 1,000% doesn’t mean it can’t go further.

Multi-day runners often surprise my newer Millionaire Challenge students.

These folks don’t realize that the same stock can provide multiple setups day after day.

Take Cloudweb Inc (OTC: CLOW).

This multi-day runner provided several chances for morning panic dip buys.

It seems pretty straightforward.

However, I watch folks struggle to identify multi-day runners and then properly execute the dip buy setups.

Now, folks who join my Millionaire Challenge get access to thousands of hours of content, including my crucial DVD series.

These go into depth on EXACTLY what I look for in my trade setups, including how I use Level 2 data to time my trades.

And normally, I keep that content under wraps.

However, I want to give you a peek behind the curtains and explain how I find and trade multi-day dip buys.

Plus, you’ll find a video in the body of this blog post that gives even more insights that I typically reserve for my students.

Strap in folks, because I’m about to hit you with some premium content.

A Video Worth The Wait

jack kellogg and sykes in italy
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As promised, this video covers some of the recent multi-day runners and key insights I discussed with my Millionaire Challenge students.

Locating Gold Mines

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Every morning and afternoon, I do two things.

First, I look for all the biggest gainers.

Normally, I look for OTC and small-cap penny stocks. However, when a stock catches a big run, it can sometimes move over $10.

So, try not to limit yourself too much.

Second, I go through the major headlines of the day from Breaking News.

Years ago, I had to do this manually, read through countless emails, and scroll twitter feeds.

Thankfully, we’ve simplified that for folks with our StocksToTrade platform.

Not only does the platform provide advanced charting, but there are some amazing features as well.

For example, our screener allows traders to look for stocks with low floats and other liquidity parameters, something few others offer.

Plus, the screener runs continuously and in the pre and post market.

As a stock starts to run, it pops onto the list.

But my favorite part has to be our Breaking News Chat feature.

We’ve hired some of the best analysts around to sift through the noise and curate the headlines traders need.

I can’t tell you how much time it saves having someone do all the leg work for me.

On top of that, they’ll let you know when a stock is getting pumped by promoters.

If you haven’t experienced it yet, I strongly urge you to sign up for a trial.

With the time saved, you can focus on studying and watching the price action.

Because as you’re about to find out, that’s where the real magic happens.

Timing Your Entry

top penny stocks list September 07, 2021 Tim Sykes Trading Mentor Q&A
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Everyone asks me, ‘Tim, how do you know where to buy a panic dip?’

I’m going to let you in on a little secret.

It’s not just where but when.

Not only do I look for traditional support and resistance, but also I look for price action to signal a bottom.

Let me give you an example.

When CLOW dropped hard early last week, it created a massive opportunity for a morning panic dip buy.

Take a look at the chart below.

Shares fell towards $1.00 before huge buying volume stepped in to halt the slide.

Now, let’s take this a step further.

CLOW’s recent run started around $0.50.

Dropping from $1.70 down to $1.20 is a nearly 50% retracement of all the gains to that point.

As I explain to my students, promoters will step in to prop up shares, especially when they fall so quickly.

But there’s one last trick I use to help my trades – Level 2 data.

A lot of folks dismiss Level 2 data because they think it’s too difficult to read or doesn’t provide good information.

However, I provide every one of my students with my full DVD set (available online) that discusses how I use Level 2 data for my entries.

Essentially, I look to see buyers stack up.

Then, I like to step in and push it over the top and up to the next price.

If all this sounds confusing, I understand.

I threw a lot of heavy information at you all at once.

Don’t worry.

I’ve mentored more than 20+ students to become millionaire traders and I can help you to.

Join my Millionaire Challenge and take the first step towards building a trading career that works for you.

—Tim


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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 (205) 851-0506 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”