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Trading Tips-Tim Sykes Penny Stock

My #1 Tool for Finding Penny Stock News to Trade

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Written by Timothy Sykes
Updated 4/18/2022 5 min read

My #1 Tool for Finding Penny Stock News: Key Takeaways

  • Learn how I find the hottest penny stocks right when they’re spiking…
  • The ONE tool can change the way you trade penny stocks forever!
  • See how you can catch the breaking news alerts that can supercharge penny stock runs…

People always ask me, “Tim, how do you find all these penny stocks right when they spike?”

This is a fast-paced niche. There’s no getting around it. And it can be dangerous — if you don’t trade with the right rules.

I’ve often said that trading is a lot like being on an open battlefield. The traders with the best tools win.

Don’t think you can walk onto the battlefield ill-prepared with some garbage “free” trading tools. You’ll get crushed.

I don’t mean to be harsh. I’m trying to be honest and transparent. Around 90% of penny stock traders lose. The odds are against you.

If you go on Twitter, it looks like everyone’s making money. But unless they show all of their trades like me … they’re probably lying.*

One tool, in particular, gives me an edge. Read on to see my #1 tool for finding the hottest penny stocks to trade.

My #1 Stock Alert Tool and Key Lessons

jack kellogg and sykes in italy
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I recently filmed a video lesson about my recent trade on Marketing Worldwide Corp. (OTCPK: MWWC).* I found it using this trading tool. And I talk about the lessons you need to learn to become a profitable day trader.

Definitely watch the video, but pay extra close attention to these 5 points…

  • Why you must always stick to rule #1
  • How to focus on only the best plays — and how the right tools can help you do that
  • What you need for EVERY single trade
  • The weird mindset trick to make trading less scary (this is counterintuitive)
  • It’s more than OK to trade small — check out how powerful that can be in the long term

 

How StocksToTrade Alerts the Hottest Penny Stock News

It’s no secret that I use StocksToTrade every day.** Yes, I’m an investor in it. And I helped design it specifically for the penny stocks I love to trade. So I’m not just an investor — I’m also a customer.

And last year, we added a new feature. Check this out…

The penny stock niche runs on hype.

Certain news will spike stocks, but you have to see the news quick enough to take advantage of the spike.

That’s where StocksToTrade’s Breaking News Chat tool comes into play…

STT’s Breaking News Chat Tool

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This is a news alert service run by two ex-hedge fund guys. They sift through all the stock news to find plays with the most potential.

It’s not an exact science. There’s still a good amount of education that goes into using it properly.

That’s where my Holiday Trading Guide can help. I filmed an entire instructional course detailing how I use StocksToTrade’s stock news alerts tool to trade in hot markets.

Like in all markets, some news will spike stocks and some won’t. But after a while, you’ll start to get a feel for which catalysts deserve your attention.

The hottest market times are the first hour of the trading day and the last. I don’t usually trade during the middle of the day. If it weren’t for the Breaking News Chat team, I definitely would have missed MMWC’s spike. Look at this chart!

MWWC chart 1-day, 1-minute candles — courtesy of StocksToTrade.com

If you want to get serious about day trading penny stocks, get the Breaking News Chat team on your side. It makes a huge difference! Take it for a 2-week test drive here.

You should also sign up for my Trading Challenge. You have to work hard to make it in this niche. But with enough dedication, anyone can learn to do what I’m doing.

Apply for the Trading Challenge here.

Comment below with how you’re preparing for this speedy niche. Will you try STT’s Breaking News Chat tool? Tell me what you think!

Disclaimers

*Results are not typical. Always do your own research as trading is inherently risky. You should not mirror the trades or alerts of the instructors and attempts to do so may result in substantial financial loss. Past performance is not an indicator of future results.

**Tim has a minority ownership stake in StocksToTrade.com.


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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”