timothy sykes logo

Trading Tips-Tim Sykes Penny Stock

No More Guesswork? How I Find The Right Plays

Timothy SykesAvatar
Written by Timothy Sykes
Updated 5/4/2023 6 min read
No More Guesswork? How I Find The Right Plays Thumbnail

Do you find it a struggle to find the right symbols to trade?

Your trade selection could be the make or break factor between achieving consistent profits and feeling like giving up.

But there’s good news.

You are in control of the trades you take…no one else is pushing the buttons for you.

That means you can make changes instantly.

I’ll show you how I traded two of the biggest movers this week…(despite a big market sell-off, the banks melting down, and traders reacting to the FOMC)

Using a simple tool that’s essential to my success.

If you’re constantly finding yourself in the wrong trades…then this one’s for you.

 

Narrowing Down Thousands Of Stocks To Just A Handful

© Millionaire Media, LLC

There are over 3,000 stocks listed on the Nasdaq, 2,800 listed on the New York Stock Exchange, and more than 11,000 securities traded on the OTC Markets…

But you can probably eliminate 99.9% of them on any given day.

You see, if you’re trying to make short term gains from trading, then you need stocks that are moving and have liquidity.

Typically that requires the stock some sort of catalyst.

The catalyst could be:

  • Company news related
  • A competitor in its niche could have news that pushes the sector up
  • A rumor
  • Stock promoters touting
  • Chat room pump
  • Government or legal news related to the stock’s sector
  • Analyst coverage/Activist Investor Note

To name a few…

The fact I traded VLPM and SVRE was not a coincidence.

Trading The Hottest Tickers

trading patterns types
© Millionaire Media, LLC

On Wednesday there were rumors circulating about VoIP-Pal.com that the company reached a settlement agreement with Amazon.com regarding their case.

Recently, we saw NLST take off following its favorable court case regarding its patent lawsuit with Samsung.

Anytime you can connect yourself with a big company, it legitimizes your company in a way.

Source: StocksToTrade

I didn’t buy off the initial headline spike…

That means I had to wait for a potential dip buy opportunity if there was a panic sell-off.

I bought in at around $0.0625 …but it didn’t do much while I was in so I bailed at $0.063.

About an hour later it looked like the stock was holding a bid so I tried again, this time at $0.0677…however, the stock was just too choppy for me and I got impatient. I exited at $0.0695 for a modest gain.

If I was more patient I would have seen it go to $0.08+ but I prefer to trade cleaner price action.

On Thursday I found myself in the ticker SVRE.

Source: StocksToTrade

This stock was up more than 80% in the pre-market, and eventually was up 120% at one time.

The catalyst?

Here’s the headline that move the stock:

SaverOne Concludes Successful Pilot Demonstration with Abu Dhabi Integrated Transport Center.

I decided to dip buy it after it spiked to $2.60…

I got in at around $1.96 and flipped out of it at $2.09 for a quick 6.6% gain.

My goal was to get 5-10% out of it…and I did that.

If it wasn’t so choppy I would have tried to ride it higher…but this one faded…and I’m glad I took profits when I did.

The Best Tool For Finding The Action

© Millionaire Media, LLC

Everyone knows I have a crazy schedule. And I trade off a laptop. I don’t have 4 screens with indicators flashing all over the place.

However, there’s one tool you’ll always find taking up real estate on my laptop.

And that’s StocksToTrade Breaking News. 

If you have aspirations of being a successful day trader then you need something that keeps you informed on all the market moving news.

Earlier this week the Breaking News Team spotted this gem in GDC:

And who could forget this monster they called out a few weeks ago in the ticker symbol CXAI.

I’m so confused why people trade without it. 

If you’re serious about finding opportunities throughout the day…

Then you NEED something like Breaking News to help you.

My best advice is to follow how news impacts stocks. After some time, you’ll start to pick up on themes and trends.

If you want to give Breaking News a shot…click this link to get started. 

How much has this post helped you?

(0 votes, average: 0 out of 5)
Leave a reply
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”