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Patterns To Watch

GME Follows This Framework:

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Written by Timothy Sykes
Updated 6/10/2024 6 min read
GME Follows This Framework: Thumbnail

Every year, every month, every week, even every day …

There’s a new trader who enters the market looking to make money.

And there ARE profit opportunities in the stock market.

But most people get caught up in the theatrics of the industry. A perfect example right now is the meme insanity caused by Keith Gill on stocks like GameStop Corporation (NYSE: GME).

See my post on X below for more details:

These volatile stock spikes can follow a popular framework because of the nature of the momentum.

The stock run won’t continue forever … But there are massive opportunities to profit as a result of the short term volatility.

Take a look at my students for proof. I included some posts below:

 

Source
Source

Too many new traders ignore this obvious framework.

Instead, they follow the memes. They base their trades on a whim. And my students and I recognize their frustration everyday. They lash out on social media, LOL.

Always remember that there’s an intense amount of toxicity in this niche … It tends to happen anywhere there’s a lot of money.

You have to push past the hate and focus on the facts: The common framework between these stocks spikes.

Popular Trading Pattern

© Millionaire Media, LLC

All of my millionaire students experienced some amount of negativity and hate as they pushed toward consistent market profits.

Again, it’s just a reality of the niche. Don’t let the wackos get to you.

If it makes you feel any better, I get this crap all day long. I can’t even begin to imagine the sad and tortured lives that these people lead.

Instead of focusing on profit setups, they trash people in the comments, LMAO:

Source

Don’t worry, I’ve been teaching for over two decades, I’m used to repeating myself:

I’m not pumping these stocks. And I’ll never shut up, LOL! I have over 40 millionaire students and countless others on their way to the $1 million milestone. We all use this single framework to trade big runners like GME.

I posted about the common framework with relation to GME on X recently. Read the whole post below:

Essentially, we’re trading bubbles.

In a bubble, the asset price appreciates without regard to the actual underlying value.

Savvy traders can make money on the way up. Then the bubble pops, and savvy traders can make money on the way down. All thanks to this common framework.

The price action has existed for CENTURIES.

Here’s a little history lesson: 

According to financial historians, William Quinn and John D. Turner, the very first market bubble was in 1720 as a result of John Law’s debt-to-equity swap.

It’s known as the South Sea Bubble, named after Law’s South Sea Company.

Take a look at the chart below that shows the boom and bust of the company’s shares:

Source

Now, if you wouldn’t mind … Take a look at the GME spike from 2021 below, every candle represents one trading day:

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

Or … Take a look at the most recent GME spike in mid-May 2024. Every candle represents 15 minutes:

GME chart multi-day, 15-minute candles Source: StocksToTrade

Notice anything yet??

Take a look at the framework that my students and I use to trade:

Yeeeeeeaaaaah …

This price action has existed since 1720.

And we STILL see it in the market today.

Trade The Framework!

© Millionaire Media, LLC

Don’t get sucked into the meme madness.

Instead, focus on the popular framework that these volatile stocks can follow.

>> The whole framework is right here <<

But recognizing this price action and trading it for a profit, are two very different things.

If this were easy, we’d all be millionaires.

In this market, not only does a trader have to understand the profit opportunities …

They also have to tune out haters like “Ordinary Adam” and “TechnoKing”, LOL.

Don’t let the bitter cry babies get under your skin!

Join my next trading live stream and meet a community that’s hellbent on personal growth.

And since it’s OUR trading community … We kick out any toxic haters.

There’s no time for hate! Only profits!

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. Read More

* 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”