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Patterns To Watch

The Perfect Friday Trade Pattern

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Written by Timothy Sykes
Updated 3/14/2024 5 min read

Friday’s are notoriously volatile.

  • It’s the last trading day before the weekend.
    • Longs are trying to capitalize on a Monday gap up.
    • Shorts are buying back shares to safeguard against the same Monday gap ups.

In summary, there’s usually a lot of bullish momentum.

The strength of these plays can outshine the spikers from earlier in the week. My students and I use a specific pattern to capitalize on this unique price action.

The last two weekends alone, I’ve seen back-to-back setups.

On Friday, March 8, I watched as Airship AI Holdings Inc. (NASDAQ: AISP) closed the week on a strong note. Judging by the price action, my Friday pattern hinted at a weekend play … By Wednesday of this week the price spiked 45% and made new highs.

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

A week before, on Friday, March 1, The RealReal Inc. (NASDAQ: REAL) exhibited the same price action. By Wednesday the next week, prices spiked 45%.

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

They won’t all spike 45%. That’s just a coincidence.

The point is: I’m 2 for 2 in March, baby!*

And I’m watching for another stock to match this pattern today, Friday, March 15.

If you’re reading this BEFORE the market closes, there’s still an opportunity to build a position.

If you’re late and the market is closed for the weekend … Use this pattern to find next week’s most likely runner.

Friday Strategy

© Millionaire Media, LLC

I posted my trade notes in the section below. But understand: I sold my positions waaaaay too early.

You could do better than me …

I’m not good at trading with patience. So I lock in gains to protect my account. That strategy is what helped me pull $7.6 million from the stock market.

Some of my students are more patient than I. Like Jack Kellogg, he’s already profited $12.4 million from the market in a fraction of the time.

But I digress … Study my Friday trade notes below.

Chronologically …

March 1, starting stake of $13,550:

Source: Profit.ly

March 8, starting stake of $17,577:

Source: Profitly

I’m in the right place at the right time. I’m just not giving these plays long enough to build. The 2024 market is way stronger than anticipated.

For example, my $117 – 0.66% profit on AISP … I’m trying to stay positive, lol.

At least some of my students found better positions.

Remember to log your entire trade @brohdie:

Source: Profit.ly

Trading transparency helps us build healthy habits. The market is full of sketchy promoters who only show their profits. Meanwhile they’re secretly drowning in losses.

I show ALL of my trades so that my students can learn from my successes AND my failures.

Now, let’s get back to the Friday strategy …

Today’s #1 Pattern

© Millionaire Media, LLC

Like I said, there’s still time today if you’re reading my blog post before the market closes.

We want stocks that match THIS price action.

It’s a decently simple process, IF YOU FOLLOW THE RULES.

I can’t stress this enough. New traders see stocks like REAL and AISP spiking over the weekend and they lose their heads.

These trades are not a 100% guarantee.

The Friday pattern helps us build a position with risk in mind. If anything goes wrong, there’s a clear path that we can use to exit.

Good luck today, and make sure to keep your head on straight.

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”