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Here’s 3 Steps That Helped Me Lock In A $1,040 Yesterday

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Written by Timothy Sykes
Updated 9/14/2023 7 min read

I LOVE getting messages like this!

https://twitter.com/JanickiTrades/status/1702228547845189849

Nothing makes me happier than knowing how I helped one of my students who’s just starting on their journey find success.

Every day I’m scanning the market for some of the biggest opportunities out there…

I’m not just doing it for me, but for all of you to help you gain a better understanding of what’s happening in this market.

I want all of you to be successful, but it’s not going to happen overnight…

So today, I want to share with you why I focus on these three key things every morning…

And how it can help you spot some of the best opportunities this market has to offer! 

Let’s get started! 

Step 1) Find A Big Percent Gainer

Every day I remind my students to focus on big percent gainers…

Why?

It gives those traders who have a small trading account a huge advantage!

Now, just because a stock is spiking doesn’t mean you should instantly trade it…

There’s a lot more to trading than just that…

This is a key starting point to help you find some of the best opportunities in this hot market!

Here’s what I mean…

Every day I’m seeing traders focus on stocks with minimal volume, and they are only spiking about 1% or 2% on the day…

Those types of stocks are very difficult to trade.

Here’s an example…

Source: StocksToTrade

You probably remember me trading Tupperware Brands Corporation (NASDAQ: TUP) several times in the past…

You can see all of my trades right here! 

TUP is only up 2% at the time I’m writing this and there isn’t much volume or volatility, it’s a very illiquid stock.  

It doesn’t give you that solid pattern I look for every morning, and a stock moving 2% on the day doesn’t give us those larger moves I’m looking to take advantage of.  

This is why I look for stocks that have been running for multiple days or are spiking 20%, 30%, or more in a single day!  

In fact, the bigger the better!

I recommend you watch this video, it’s an oldie but a good one to give you a better idea!

https://www.youtube.com/watch?v=Ryl5QRe4olA

Yesterday morning when I was scanning the market, I saw First Wave BioPharma, Inc. (NASDAQ: FWBI) spiking in the morning thanks to StocksToTrade Breaking News. 

Here’s the chart…

Source: StocksToTrade

This big percent gainer was spiking based on this news, and it ended up squeezing shorts out of their position…

And seeing this first thing in the morning put me in a way better position for when that opening bell rings.  

Step 2) Looking for a catalyst

There’s usually a story behind the stocks that are spiking…

It could be from news, promoters, over-aggressive short sellers…

Whatever it may be, you need to understand the powers behind it.

In the last couple of weeks, we saw plenty of stocks get squeezed higher as short sellers got caught off guard from news plays…

  • Verb Technology Company, Inc. (NASDAQ: VERB)
  • Sigma Additive Solutions, Inc. (NASDAQ; SASI)
  • NanoVibronix, Inc. (NASDAQ: NAOV)

And yesterday, FWBI followed that same pattern.

FWBI soared from $0.48 price to $1.10, that’s over a 100% move!

Now, when a stock spikes this much, the last thing you want to do is chase…

Remember, after all, we are trading some of the crappiest companies around…

So that’s why I typically look to dip-buy these big percent gainers first thing in the morning…

More Breaking News

That’s when you’ll typically see the best opportunities to panic dip buy.  

Step 3 ) Look For Volume

Take a look at this chart…

Source: StocksToTrade

Not much in the way of volume, but notice the three areas I circled in the chart above.

Look at how the stock reacted when there was a surge in volume.

When you have a stock that is heavily shorted, has news, and higher than average volume…

That’s when you can see some explosive moves, and we saw that yesterday with FWBI. 

Let me show you what I mean…

As soon as I got the breaking news alert, I was laser-focused on this play and patiently waited for that quick price dip as soon as the market opened. 

Source: StocksToTrade

I bought FWBI at $0.882 and sold it at $1.09 for a 23.58% profit!  (Risked $4,410). 

I was out of my trade in less than 5 minutes!

Those are the quick moves you want to look for when you spot some of these early-morning spikers.

You can see shortly after the stock started to fade, but it’s those early morning squeezes we’re seeing on these heavily shorted plays.  

Final Thought

One of the best ways for you to improve your confidence is to practice, practice, practice.

Every day I remind my students to be prepared and keep focusing on these early morning runners…

And if they don’t see anything they like, don’t force something that’s not there.

If you’re looking to find some of the best opportunities, you need to attend these FREE trading sessions!

This can help you spot the same opportunities that other successful traders are focused on every morning!

Stay safe and I’ll see you in chat.

-Tim

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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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* 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”