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Trading Tips-Tim Sykes Penny Stock

How I Find The Hottest Plays

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Written by Timothy Sykes
Updated 5/16/2023 6 min read
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Finding the right stocks to trade doesn’t have to be hard.

Take, for instance, the recent surging ticker, WKEY, that delivered almost 40% gains in just a few minutes.

The best part?

I just needed two things to take advantage of the trade.

And today, I’ll share what they are and how you can prepare yourself next time when the setup is there.

If you’re struggling to find good trading opportunities while trying to grow a small account, then this strategy has the potential to be a game changer.

 

Has This Ever Happened To You?

top penny stocks list September 13, 2021 Tim Sykes drinks coffee in Positano Italy working on Mindset Master
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Have you ever bought a stock, and right after your buy order, you can see the stock up substantially?

It’s an awesome feeling…and one I experienced on Monday after I traded the ticker symbol WKEY.

I got in at $2.60, and within a few minutes, it was trading above $4!

So what could cause a stock to have such a massive jump in such a short period?

News.

In fact, it was a tweet that set WiseKey off…

This is what I call “Legitimizer News.”

The tweet above shows Elon Musk with the CEO of WKEY together in a photo, apparently discussing satellites and SpaceX.

WiseKey has a market cap of just $40 million.

Linking up with Musk is an instant credibility boost for the company. And it’s extremely bullish for WKEY stock.

Shares of WKEY instantly took off once the tweet was released.

Of course, when I saw it, I felt it would push the stock higher.

In fact, when I tried to buy shares initially, I missed them because the stock was moving so fast. I could only get a partial fill, 1,200 shares at $2.60.

However, I wasn’t in them for long…getting out at $3.56 for a 36.9% gain.

How To Find These Plays

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I use a service that keeps me in touch with all the real-time breaking news, rumors, and market-moving events.

It’s called the StocksToTrade Breaking News Chat. 

It informs me of the latest press releases… and what’s happening on Twitter, where many small-cap companies like to make announcements.

In other words, the StocksToTrade Breaking News Chat is my eyes and ears. I use it to curate the news and point me to what traders are focused on.

The WKEY was a simple trade for me…because I’ve seen stocks take off on similar news.

Here are some other headlines that have the potential to move stocks fast:

  • Earnings Reports. We’ve seen plenty of earnings winners this quarter, notably ticker symbols FUBO, CVNA, and PLTR. A strong earnings report is one way to change the narrative about your company.
  • Niche Sector News. Some sectors like AI, crypto, and EVs tend to move together. In other words, if there is bullish news in one of the stocks in the sector, it could spill over and push the other stocks in the sector higher.
  • Legitimizer News: Whenever a small-cap company can associate itself with a large-cap company. For example, TCRX with AMGN last week and WKEY with SpaceX a couple of days ago.
  • Influencer News: Anytime you can get a celeb to cosign for you, that’s a plus. Who can forget the +500% move in CMGR after it announced a promo deal with former NFL star Rob Gronkowski a while back?

  • New Product or Service Launch. A new product or service in a hot sector has the potential to send a stock soaring. Remember Buzzfeed earlier this year? The stock exploded after it announced it would use AI to assemble its content.

Speed Matters

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The Breaking News Chat is awesome because it delivers timely information quickly.

The stocks can move very fast.

That’s why I suggest you watch the plays when learning to trade this strategy.

You want to get a feel of how fast these moves are…which news causes stocks to pop and then drop instantly…

Of course, you want to avoid chasing and letting FOMO get the best of you.

If you want to practice, check out this Breaking News Chat trial. 

You’ll be amazed at how it all works, opening your eyes to new opportunities.

Here’s the link again for you to check out. 

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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

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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”