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Mentor Updates

Mentor Update: In a Hot Market, Learn to Take Singles

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Written by Timothy Sykes
Updated 1/17/2023 16 min read

I’ve been chillin’ in the Caribbean to start the year. I really needed to recharge my batteries. My goal was to just relax. Instead, I’ve been posting non-stop about the devastating bushfires in Australia.

It’s estimated that over one billion animals have died. (There’s no way to get an exact number.) But here’s the thing…

… while it’s tragic that an estimated one billion animals have died, now we’ve gotta focus on the living.

Check out the videos in the post below.


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Please share these new videos with your followers — an estimated 1 billion animals have been killed in the Australian wildfires, but we must now care for the surviving animals which are innocent, loving creatures that are now traumatized so we MUST focus on helping them in their time of need! These new videos show how traumatized too many kangaroos and koalas are, paralyzed with fear because while they survived, they saw their entire families die so now they need love, affection, food and water so we must support the great local charities that are helping them so we at @karmagawa and @savethereef are proud to donate 100% of profits from our charity merch sales in January to help them and today, we debuted a brand new collection dedicated to saving Australian wildlife (see the link in bio) so check that out and also use the “donate” button in our profile to donate to The Karmagawa Foundation, as all donations are welcome, great and small. But more than just money, we need to spread awareness about this crisis to get the whole world working together to help these suffering animals so please share this post with your followers and tag people, celebrities and influencers who need to see it ASAP because these poor animals desperately need everyone’s help right now! #savethekangaroos #savethekoalas #helpaustralia #karmagawa

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Please share the post with your followers. While these animals have survived, it’s clear they’re extremely traumatized.

Over at Karmagawa, we came out with a whole new collection specifically to help Australia. We’re donating all Karmagawa profits for January to several great charities. They include NSW Rural Fire Service, WIRES Wildlife Rescue, and Deep Peace Trust. Also, Adelaide Koala Rescue, Australian Red Cross, and the Balu Blue Foundation. And there are more.

The new collection is selling out fast. Actually, a lot of the charity merch on Karmagawa.com is already sold out. Which is awesome because we’re trying to raise $100,000 for January. We’re now roughly halfway there. It’s a good start.

Here’s how you can help:

Go to the Karmagawa shop and buy something. Or…

donate directly to the Karmagawa Foundation.

All donations are welcome — big or small.

Now let’s get on with some trading talk…

Trading Lesson of the Week: Take Singles

There are SO many trades right now. The best lesson when there are so many plays is simple: take singles.

If you look at my recent trades, I have mostly small wins. We’re talking $98 on Demand Brands, Inc (OTCPK: DMAN), $102 on BioRestorative Therapies, Inc. (OTCQB: BRTX)…

On Cannabix Technologies Inc (OTCPK: BLOZF), I had a small $210 win. Another on the same stock was basically a scratch at $7. There are also a few bigger wins, but they’re still relatively small.

But check this out…

In the first seven trading days of the year, I made $10,645.** That’s an average of roughly $1,500 per day. So how is my average higher when I’m mostly taking small wins?

I follow rule #1: cut losses quickly. Which means the bigger wins are MUCH bigger than the losses. In other words, I keep the losses small so the wins — big or small — add up.

Like this…

On a third BLOZF trade, I made $1,337 on a 7.64% win. On another trade, Rafarma Pharmaceuticals, Inc. (OTCPK: RAFA), I made $1,050. And on January 8, I had my biggest win of the year with a slightly bigger dollar position.

[**Please note my results are not typical. I have exceptional knowledge and skills developed over time. Most traders lose money. Trading is risky. Do your due diligence and never risk more than you can afford.]

Trade of the Week

Let’s take a look at my biggest win — so far — of 2020…

Zion Oil (NASDAQ: ZN)

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There was a lot of movement in oil stocks for a few days as the crisis with Iran unfolded. Zion Oil was a recent runner on January 6.

Look at the Zion Oil one-year chart below:

ZN stock chart
ZN chart: 1-year, daily candle — courtesy of StocksToTrade.com

The stock spiked again premarket on January 8. My goal was to take 5%–10% on a morning spike and cut losses quickly if it failed.

Here’s the ZN intraday chart from January 8:

ZN intraday chart
ZN chart: morning spike, January 8, 2020, 1-minute candlestick — courtesy of StocksToTrade.com

As you can see, it had a nice morning spike. I’m glad I took a slightly larger size. The trade was a 12.2% win for $2,750 profit.** My plan is to size up in the next few days as I get used to taking bigger positions again. But I’m still getting used to the crazy market.

There are just SO many plays. So take singles. Don’t go for home runs, because just as fast as these stocks spike … they can drop, too.

Trading Question

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Let’s get to a question from a Trading Challenge student…

“Tim, considering the market is at all-time highs and you’re easing back into trading with a big account, are you keeping your risk levels tight?”

Yeah … but still … you always have to keep it trade by trade. You can’t get too cocky.

Also, more than just the big account … and more than the market at all-time highs … there are five to 10 stocks spiking 50%–100% … every day

So you have to choose your spots. And sometimes you have to be OK with missing out.

Take Trillium Therapeutics Inc. (NASDAQ: TRIL) on January 9, for example…

TRIL had a multi-day breakout in the $1.60s–$1.70s range. I’ve been watching the stock for a while. It was one of my top five penny stocks to watch for January.

Both Mark Croock and I saw it. Mark took a small position. I think he got in around $1.70 and sold around $2.00. Then the stock just kept going. In the commentary on Profit.ly I even said, “I’d be selling in the $2.40s NOT buying/chasing.”

The stock went to $3 plus … the same day. So it nearly doubled. It was the biggest move the stock has had for months. I missed it.

But several students nailed it. Check out these tweets from students…

@Nick_n13l17 gets it … singles add up…

And @Chesskid90 saw TRIL on my free watchlist

Or @KhyleSocrates, who caught the breakout beautifully…

What you have to remember is…

It’s OK to Miss a Play

You have to be OK with missing it. If you see it … and if you can profit from it … that’s awesome.

But it’s important to learn to…

Choose Your Trades Carefully

If you miss a trade, try to take the lesson … “OK, I saw what happened there. I recognized it. I’ll try to do better next time.”

For me, I don’t do as well with short squeezes — and that’s what’s been working best in the market lately. Sometimes that happens.

Some people ask why I don’t trade a stock like TRIL when I see it. Again, there are so many plays right now you have to choose what works best for you. For example, I prefer OTCs to Nasdaq stocks.

Which leads me to a final trading lesson for this edition of the update…

Bonus Trading Lesson: How to Avoid Becoming the Typical Penny Stock Gambler

The good news is there are a lot of plays. Which means there’s a lot of money to be made.

The bad news is…

… because there are so many plays, students stop studying the past.

They say, “Yeah, yeah … OK, Tim … your pattern … blah, blah, blah…”

New to penny stocks? Get my FREE penny stock guide here.

Then they focus on whatever’s hot. So they become the typical penny stock trader: a gambler. They chase other people’s alerts. They chase big movers and wonder why they’re not having success.

Here’s a great example…

One of my top young students, Jack Kellogg, made $72,341** in the first four months of 2019. His trading profits went from roughly $38K to $111K during that time. This is what Jack had to say about getting back to the process…

So Jack is back to his process. He’s back to studying and focusing on what works best for him. And I’m proud of him because he’s killing it. His profit chart on Profit.ly is a nice steady uptrend.

[**Jack’s results aren’t typical. He’s developed exceptional knowledge and skills through dedication, study, and experience. Most traders lose money. Do your due diligence and never risk more than you can afford.]

Learn From the Past

Don’t forget the past. All these plays should encourage you that there’s money to be made. But if you truly want to maximize your profits, you MUST study the past so you can be fully prepared.

Here’s another question I get a lot: “Why are your students trading stocks that you’re NOT trading?” 

Unlike many fakes in this industry, I teach my students to be self-sufficient. I don’t want you following me into a trade. You should avoid following anybody else into trades.

Many of the most frequently asked questions are answered in “The Complete Penny Stock Course” written by my student Jamil. Get it. Read it.

How do you become self-sufficient? Study the past. Study like you’ve never studied before…

Use Evenings and Weekends to Study

Use every weekend … and every night to study. Every single newbie is playing a game of catch up. Remember, this game has been played for decades. You’re just getting used to it. You’re just learning about it.

You have to trade for several years before you move out of Newbieville. You have to go through different market conditions and gain a lot of experience.

There are those of us who have been profiting from this stuff for decades. We pick off newbies for fun…

So don’t be easy prey. Instead, arm yourself and learn from the past.

Millionaire Mentor Market Wrap

That’s it for this edition of the update. Please, share my post about the Australian animals with your friends and family. Tag influencers. The more we spread the message, the better.

Also, be happy to take singles.

Finally, choose your trades carefully and don’t allow fear of missing out get to you. There will always be another hot play. If you struggle to find the best stocks … use StocksToTrade. I use it every single day. Also, I use these brokers and trade with these rules.

Before you go…

Props to Students

Since so many students banked on the TRIL breakout the other day, I want to give some props. Here are just a few of the comments from the Trading Challenge chat room on the day of the big breakout…

10:03 AM KCremeens: in $tril last night 2000 @1.52 out right before market open at 1.66. then the break out. 

10:07 AM Mfaulk: Bought 1k TRIL at 1.72, sold 1.96 for a 244 profit.

10:09 AM kaiser_soze: TRIL bought 1000 shares @ $1.74, out at $1.87 (got out too early but still a win).

10:09 AM ThePennySqueeze: Sold rest of TRIL 1.98, could go higher but i’ll take my $711.64 in profits.

10:10 AM EARL: damn sold TRIL at 1.90 but not upset, made my 10% and was on the right track.

10:19 AM Mk12markcroock: TRIL bought 1.75 sold 2.21, 1500 shares…Thanks a lot Mark…I was about to sell at 2.00 and read your post about 2.20…

10:22 AM rrhyner2: TRIL in at 1.67 out at 2.20. only 300 shares lol darn it.

10:30 AM Indian_Curry: TRIL ..in @1.67..out 2.64 ..sweet $1450.

10:30 AM Jastaff: $Tril In @$1.24 yesterday out $2.65 today. 

Congrats to all students who study hard and take action!

[Students’ results are NOT typical. Roughly 90% of traders lose. Always remember trading is risky, and never risk more than you can afford.]

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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”