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Patterns To Watch

Find And Trade These Runners

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Written by Timothy Sykes
Updated 4/9/2024 6 min read
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It’s only Tuesday and we’ve already seen some perfect opportunities to profit this week.

Yesterday we were watching Auddia Inc. (NASDAQ: AUUD) before the market even opened. It announced news of an AI patent from the U.S. Patent and Trademark Office. The price immediately spiked 290%.

Take a look at the chart below, every candle represents one minute:

AUUD chart intraday, 1-minute candles Source: StocksToTrade

There’s an obvious trade setup on this chart.

I even outlined the pattern over the weekend for Challenge students. We saw the same pattern on each of the following stocks last week:

  • TC BioPharm (holdings) plc (NASDAQ: TCBP) spiked 150%.
  • GCT Semiconductor Holding Inc. (NYSE: GCTS) spiked 100%.
  • 22nd Century Group Inc. (NASDAQ: XXII) spiked 190%.

Sure enough, on Monday morning AUUD followed the same pattern.

We’re not trying to catch the entire move. We just want to snag the safest* profits.

There are certain details that tell us which stocks to focus on.

The Profits Are In The Details

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If I buy stocks at random, I’m going to get random results.

We only want the best setups.

That means we pay attention to things like …

  • A stock’s float.
    • A stock with a low float can spike higher.
  • The catalyst pushing prices higher.
    • Some catalysts are better than others.
  • The overall market environment.
    • Bull market v.s. Bear market. Whether or not stocks are prone to short squeezes.
  • The share price.
    • Lower priced stocks can spike higher percentages.
  • Intraday volume.
    • A high trading volume shows liquidity and popularity.
  • The history of spiking.
    • Past spikers can spike again

At first glance, this can be very confusing for a new trader.

Don’t worry. It was confusing for me too. But I had to learn this without a mentor. Luckily, you have me and my millionaire students to point out the necessary aspects of profitable trading.

Until this process becomes second nature, I strongly encourage you to follow Breaking News alerts. I still use this tool even though I have over $7.6 million in trading profits.

Here’s why: I have a busy schedule teaching students and managing my charity, Karmagawa. I don’t have time to sit in front of the computer all day long. Breaking News helps me find these stocks early.

Take a look at the alert I got on AUUD yesterday morning:

AUUD chart intraday, 1-minute candles Source: StocksToTrade

There was so much time to build a position for this AUUD dip buy.

This is where you’ll find the next Breaking News alert.

My Pattern For Profits

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I used the same pattern on AUUD that I’ve been using for other spikers.

The trade notes are below, my starting stake was $19,950:

Source: Profitly

But … every spike looks a little different. It’s not like they all spike to $5 by the time the market opens.

I’m focused on dip buys. But the dip buy on AUUD looks a little different than the dip buy for TCBP or GCTS.

Don’t focus too much on AUUD’s price action without taking into account the other runners in our niche. These patterns repeat if you can recognize the similarities. That’s why we focus on specific details.

For the best experience, watch me and my millionaire students trade these plays live. There are trading webinars all day today.

We outline all the necessary trading details in real time. That way you get a glimpse inside the thought process of a millionaire trader.

Enter the chatroom and pay attention.

One More Small Profit Detail

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Let’s expose the elephant in the room …

The U.S. tax deadline is Monday, April 15.

I’m a trader first and foremost. I don’t really know anything about taxes.

Except …

I know that some people save tons of money just by choosing the best tax brackets.

I’m not the one to advise you on taxes. That’s why I partnered with a company who’s qualified to help traders save money every year on taxes.

This is one of the details that pertains to our REAL market profits.

Whether you like it or not, everyone has to pay taxes.

I found a simple way to get expert advice on small-account trading taxes. The company is called Prime, and I sat down with their representative, Nick Buhelos to understand the whole concept.

There’s very little work involved. Watch my video with Nick below:

Make sure you’re set up to maximize your gains!

All it takes is one call to get all of this information for FREE. Don’t put it off any longer!

Here’s the link to get started.

Keep YOUR money in YOUR account.

Cheers.

*Trading is inherently risky.

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Author card Timothy Sykes picture

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”