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Trading Recap

How I Made $1,500 On One Trade*

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Written by Timothy Sykes
Updated 5/7/2024 5 min read
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I told you that there are profit opportunities every day in this niche …

Profit opportunities for small-account traders:

  • Cheap stocks.
  • Spiking +100%.

Traders can load up on shares and ride the percent gain for profits.

For example, yesterday I snagged a 13% profit on Golden Sun Health Technology Group Limited (NASDAQ: GSUN). And the price never spiked above $8.

Larger stocks usually don’t move as much intraday. You’re lucky to see a blue-chip stock spike 10%. Let alone 150%* like GSUN yesterday.

I’m not trying to snag the entire move. The reason I focus on big runners is because there’s more room for error. Stock trading is inherently risky. I can mitigate that risk by aiming for specific price action on big percent gainers.

Take a look at the move on GSUN below, every candle represents one minute:

GSUN chart intraday, 1-minute candles Source: StocksToTrade

Here’s how I traded it …

Morning Opportunities

sun coming in on Sykes - arms out
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The biggest profit opportunities for small-account traders usually start running in the morning.

The company announces news during premarket hours. And the price action reacts volatally to the news.

On May 7, GSUN announced that the company had regained Nasdaq compliance.

Spoiler alert: Most of these cheap stocks are garbage. Like GSUN, they’re a few mistakes away from delisting from the market entirely.

We’re not investing in these companies. We just trade the volatility when they announce bullish news.

Here are my trade notes from yesterday’s profit on GSUN:

Source: Profit.ly

Again, notice, my goal was to make 5 – 10% on the trade. Even though the stock spiked 150%* in total.

My strategy is to trade the most predictable part of the move, then I cash out and wait for the next big runner.

In our niche, there are new stocks spiking like GSUN every single day.

And they start to move in the morning.

Traders get alerts when there’s a stock running with a bullish catalyst. All I have to do is wait for the stock to match my framework.

See my Tweet below with more information:

Take a look at the alert we got on GSUN yesterday. On the chart below, every candle represents one minute:

GSUN chart intraday, 1-minute candles Source: Breaking News Chat

>> Here’s where I get the next news alert <<

Traders had all morning to build a position on this runner. And the price action matched my trading framework perfectly.

Trade Patterns

tim sykes pointing at chart
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The most volatile stocks in the market can follow popular patterns because people are predictable during times of high stress.

Like when they have a couple thousand dollars in a stock that’s spiking +100% intraday. These patterns are based on human psychology more than anything else.

Over twenty years ago, when I first started trading in college, I stumbled upon this common framework.

And ever since, I’ve used this strategy to profit in the market. I’ve also taught others … So far I have over 30 millionaire students, and that number keeps climbing.

One of my most successful students, Jack Kellogg, started in 2017. Currently he’s managed to pull an insane $12.6 million from the stock market using my strategies.

Yes, it’s the same strategy over and over again.

And this week there’s a FREE opportunity to get in on the next big trade … I already moved $500,000 from my trading account to prepare for this specific setup.

See my Tweet below:

Jack is going live on May 9 at 8 P.M. Eastern to show traders the entire setup.

>> This is your FREE ticket to attend <<

Don’t miss this opportunity to profit. I’ll see you there!

Cheers.

 

*Past performance does not indicate future results

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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”