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Trading Recap

Is This The Golden Era of Trading?

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Written by Timothy Sykes
Updated 7/6/2023 6 min read

After struggling last week with six straight trading losses— I’m BACK.

I nailed my last seven trades.

This is truly the golden era of trading right now.

If you’re not studying daily and working on developing your skills— you’ll likely miss out on these opportunities.

If you don’t know where to start, then I suggest you go here. 

But before you go there, I want to talk about a trade I had in the ticker symbol IQST.

That’s because this pattern is hot right now and I want you to be able to identify it, and potentially profit from it next time you come across it.

A Classic Returns

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Markets are constantly changing.

That means some setups will work better under certain conditions vs. others.

That’s why I encourage my students to study hard, and have a few go-to strategies that they can rely on. 

I’ve found myself tinkering with new ideas this year…trying my best to adapt.

But it’s always nice to see an old favorite return—The First Green Day Setup.

What Made IQST An Attractive Play

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I was initially interested in IQST when I saw this headline:

 IQST – iQSTEL Launches Proprietary AI Backed Metaverse App Into $900 Billion Market

The news came out early and the stock spiked quickly…

I didn’t get a chance to buy right away…and I wasn’t going to chase.

Source: StocksToTrade

Going back out on the chart you could see that this was a former Supernova…trading as high as $2 back in 2021.

I was either going to dip buy…or wait to get in later.

Source: StocksToTrade

My thinking was that if more people found out about the story…it would have a chance to run into Thursday…

This is a classic First Green Day Setup…

I got an opportunity to enter at an average price of $0.188 on Wednesday with the goal of getting out the next day on a gap up for 10-30% profits if I was right.

And if I was wrong…I would get out fast and cut losses quickly.

Well…the stock did exactly what I thought it would…and I was able to peel out of my position at $0.23…good for a return of 22.3%

So why did this work so well?

Unpacking the OTC First Green Day Setup

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Three specific indicators must align for a consistent OTC first green day play. These include:

  • Big percent gainer with volume: The stock should be up enough that scans pick it up.
  • Holding gains: Towards the close, the stock should be at, or near, its high of day (HOD).
  • News catalyst: A significant announcement or news affecting the stock should be present.

In the case of IQST, the launch of their AI-backed Metaverse app provided the news catalyst, it showed significant gains with volume, and it held its gains, thus aligning perfectly with the first green day criteria.

Lessons from Past Trades

Understanding the nuances of the first green day setup comes with experience and learning from past trades.

For instance, in September 2019, Ignite International Brands Ltd (OTCQX: BILZF) presented a perfect first green day setup during the 2019 Trader & Investment Summit.

Their post about the availability of their stock on the US market created an informational inefficiency, leading to a huge morning spike.

This was a valuable lesson about the potential for penny stocks and how focusing on ideal setups can reduce trading frustration.

The IQST Trade: A Classic First Green Day Setup

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This trade serves as a lesson that the OTC first green day setup is about recognizing the setup and being patient for the indicators to align.

Once you can identify these patterns, you can position yourself to trade them effectively.

As always, it’s crucial to remember that not all setups will work out as expected.

Even with a potential winning pattern, the key is to maintain a disciplined approach, carefully managing your risk and reward, and learning from each trade.

If it doesn’t work…DON’T FIGHT IT.

Cut losses quickly and live to fight another day.

Remember, focusing on patterns that make sense can help reduce trading frustration. So, learn the OTC first green day setup, recognize them, and position yourself to trade them.

The more you see it…the more comfortable you’ll get with them.

If you want to continue your education then I highly recommend you check out one of our LIVE TRAINING CLASSES. 

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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

* 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”