Consider this a public service announcement…
Every day I see new traders fall for the BS out there on X/Twitter.
Or in scammy Discord chat rooms.
One of the worst pieces of advice the meme stock morons and crypto bros give is…
“HODL! Eventually it WILL come back.”
That’s just stupid. Plain and simple.
No stock or company or crypto EVER has to come back.
And you can’t predict how far any stock, or the overall markets can drop.
Especially when you see this…
Table of Contents
The Setup: Classic Profit Taking After a Huge Runup
The overall market ended ugly last week. And it wasn’t just the U.S. markets.
The South Korean market got wrecked overnight on Friday.
It got halted for the second time in a week after dropping more than 8%.
Why does this matter for U.S. markets?
Because traders and investors are worried about chip stocks and a bust of the AI boom.
OpenAI’s reported IPO delay didn’t help.
After the big tech runup the last few weeks, this looks like classic profit taking.
Why I’m Being Overly Safe
Look at last week’s SPDR S&P 500 ETF chart…
The overall market dropped a lot with no real bounce.
At the same time, we’re still VERY overextended and heading into summer.
Here’s the SPY 1-year chart…
It wouldn’t surprise me to see more downside.
And if that happens, all the recent dip buyers might panic (it could get UGLY).
Maybe I’m being overly safe, but that’s how I think.
With the momentum draining out of the highly inflated South Korean market, it could kill tech stocks worldwide.
The key lesson is…
HODLing Is an Act of Naive Idiocy
Remember to cut losses quickly.
Too many newbies mistakenly believe that HODLing is necessary to make big money.
The reality is…
HODLing is a way to LOSE big money.
Millionaire Moves
Over the weekend we held an Inner Circle meetup in Boston.
It’s amazing so many of my millionaire students LOVE to give back by becoming Inner Circle mentors.
David Hanlin started with just $2,000 saved from lifeguarding. Through relentless study, learning from everyone around him, and years of hard work, he has now surpassed $16 million in trading profits.
As an Inner Circle mentor, David continues to share the lessons that helped… pic.twitter.com/cZwxvN3QUv
— StocksToTrade (@StocksToTrade) June 26, 2026
If you’re interested in working with a small group of very serious traders, check out my interview with Strati. (Strati is also an Inner Circle mentor.)
You Have Options
If you’ve ever wondered about trading options, my friend Ben Sturgill has a bootcamp on July 7th and 8th.
There are a limited number of free tickets available.
I recommend you get the VIP ticket because it includes a video masterclass and a breakout session with Ben.
PLUS: you get access to Ben’s Dynamic Watchlist.
Get your ticket to Ben’s Simpler Options Bootcamp here
Key Takeaway
Be aware of what’s happening in the overall markets.
But also be aware of markets in other parts of the world.
Especially the Asian markets right now because so much tech manufacturing is based there.
We are due for a pullback. It would be good for the markets.
But you have NO IDEA how far it could drop if a selloff turns into panic.
Stay safe.
Cheers,
– Tim Sykes
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