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A Simple Framework For Stock Spikes

Timothy SykesAvatar
Written by Timothy Sykes
Updated 8/19/2025 4 min read

In this article

  • SNGX+78.42%
    SNGX - NASDAQSoligenix Inc.
    $4.14+2.18 (+78.42%)
    Volume:  184.36M
    Float:  4.15M
    $3.57Day Low/High$6.23

Traders who continue to lose money in the market are probably trading the wrong stocks.

Every day, there are perfect runners in the market — low-priced stocks that spike +100% — and most traders completely miss them.

Like Monday’s 120%* runner with FDA news …

Why? Because they:

  • Chase the wrong setups.
  • Are stuck in the wrong mindset.
  • And ignore the repeating patterns that actually work.

In short, they’re uneducated and blinded by greed.

I’ve turned $12,415 into $7.9 million trading these exact setups.

My top student, Jack Kellogg, went from valeting cars to over $20 million in profits — all from trading penny stocks that most people laugh at.

But here’s the truth: These “joke stocks” offer the best opportunities for small traders to grow their accounts with controlled risk — provided they know what to look for.

This blog post will show you:

  • How to spot these spikes.
  • How to trade the right patterns at the right time.
  • And how to stop wasting time on the setups that never pay.

Keep reading — this could be the mindset shift that finally changes your trading forever.

The Strongest Trade Setups

Every day my millionaire students and I look for the same kinds of stocks.

  • Spikes above 20%.
  • With news.
  • With a float below 10 million shares.
  • And volume of at least 1 million shares.

Traders can build this scan with most trading software.

Although some won’t offer float data or recent news scans … Use StocksToTrade to ensure that you have the most effective scans.

The combined factors above give us the strongest stock spikes in the market.

And when the stocks shoot up at an insane rate, the price likes to follow specific patterns that develop due to people’s fear and greed.

We’re essentially trading human psychology as it manifests in the stock market.

And we can look at the recent spike from Monday, August 18 as an example.

Monday’s +100% Stock Spike

On Monday morning during premarket hours, a former runner announced an FDA grant for its treatment of Behçet’s disease.

StocksToTrade shows the float was only 3.1 million shares and it traded 1 million shares of volume within the first ten minutes of announcing the news.

The spiked 120%* higher intraday, and it showed multiple opportunities to make gains within the price action.

Look at the chart of Soligenix Inc. (NASDAQ: SNGX) below after the company announced the news. Every candle represents one trading minute:

SNGX chart intraday, 1-minute candles Source: StocksToTrade
SNGX chart intraday, 1-minute candles Source: StocksToTrade

And that wasn’t the only runner of the day.

  • MB bounced 130%* from its insane selloff.
  • VTAK spiked 100%* during premarket hours.
  • ASBP spiked 140%*.

My students and I see multiple stock spikes every day in this 2025 market.

And they ALL like to follow popular patterns that repeat in the market.

But proper pattern recognition is key … Otherwise traders are buying a highly volatile stock at random. And that’s extremely dangerous.

Use the same patterns that my millionaire students and I use!

Catch the next +100% runner this week.

It’s right around the corner!

Cheers

 

*Past performance does not indicate future results


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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.
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In this article (YTD Performance)


* 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”

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