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Penny Stock Basics

How I Made $2,236 on a Friday Afternoon Selling WAY Too Soon!

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Written by Timothy Sykes
Updated 8/31/2021 14 min read

How I Made $2,236 on a Friday Afternoon Selling WAY Too Soon: Key Takeaways

  • This late-day strategy works so well, sometimes I don’t even hold overnight.
  • Nothing in trading is 100%, but this is the best way I know to grow an account under the PDT rule without using a day trade.
  • You don’t have to trade crypto or forex to make weekends work for you.

FREE Webinar Reveals the Strange Market Phenomenon Most Traders Don’t Know About

Why I’m Happy About a $14,648 Trading Mistake

Shoulda, coulda, woulda…

It was Friday, May 21, 2021. Like most traders, I was ready for the weekend.

Even though May was slow, I’d already made $23.5K for the month. That seems like a lot until you put things in perspective. In the first four months of 2021, I made $829,335.* The pace was grueling.

So May was slow and it had been a slow week. I’m pretty sure it was my worst profit week in over a year. Putting it bluntly, I was ready to call it a week when I got an alert about this tweet…

After 20 years in the trading game, I knew this could be big. I did a quick search and found this…

Finally, just to be sure, I clicked the news link in the tweet and quickly scanned the press release. Here’s what I saw at the top…

That’s when I realized…

MJWL Fit One of My Favorite Strategies to a T

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But time was of the essence…

The press release had hit the wires an hour earlier…

The Seeking Alpha article had been out for 20 minutes…

… and the company tweet had been out for five minutes.

I knew I had to act fast. I immediately tried to load up on shares. I only got a partial fill. My position of 385,500 shares was a small (for me) investment of $11,179.50.

I posted this on Profit.ly

“Company tweeted saying news next week so it’s an upcoming news play into the close on a Friday, goal is to profit 10-20%, goal is to sell in the .03s today or Monday.”

Two minutes later it was up 5%. After five minutes it had spiked 13%. When I exited my position after just 12 minutes it was up 20% for a $2,236 win.*

In my exit comments, I wrote…

“Tried to have patience, but this has already achieved all my goals so no need for any overnight risk in a slower trading environment…whew, nice way to end the week for me with my best trade of the week!”

The Crazy Thing Is, I Completely Underestimated It!

I’ll explain, but first here’s the MJWL chart from May 21 with my trade…

MJWL stock chart
MJWL chart: May 21, 2021, OTC FGD — courtesy of StocksToTrade.com

I was happy with that trade. Even though I hadn’t traded badly during the week, there just weren’t that many plays in OTC land. And I was traveling, too.

Some students asked how I knew MJWL would keep spiking since the news was already out. It’s a valid question.

One of the reasons I love penny stocks is because of what I like to call informational inefficiency. (I’ll explain more in the free webinar on Wednesday, September 1. Keep reading for details.)  But that alone wasn’t enough for me to take the trade.

Thing is, if you know what information to look for, and where to find it…

It’s Like Having An Information Edge

I’ll come back to that because it might just be the most important part of this strategy.

The informational inefficiency often happens on a Friday afternoon. Which brings up another question many students asked…

Why didn’t I hold MJWL over the weekend?

The main reason was because it had already reached my goals. (Always trade with a plan.) So there wasn’t any need to hold. Also, at the time, a lot of spikers were failing on day two. So I was adapting to the market. And again, I was traveling.

If it hadn’t met my goals — say I was break even — I probably would’ve held. And if the market was still hot like January and February? I probably would’ve held. I even might’ve held it over the weekend if I wasn’t traveling.

More students asked this question…

“Tim, how did you know it would spike more based on a tweet?”

Nothing in trading is sure. But there was one sentence in that tweet that made it fit my strategy to a T. More about that later.

In the end, I sold too soon. But had I held it would have been an AMAZING trade. This is where the trade gets very interesting…

Shoulda, Coulda, Woulda

Even though MJWL didn’t close strong, it gapped up 25% that Monday. And then it just kept going. So if I’d held it and sold at the open, my profits would have been $3,932…

And if I’d had the patience to hold for 10 minutes (yes, just 10 minutes) after the market opened … my profits would have been $10,716.

Wait, it gets crazier. Had I held for 58 minutes … less than an hour … my original $11,179 would be worth $28,064 for a profit of $16,884…

THAT is how much I underestimated it. But I was happy, anyway. Why? Because it meant one of my all-time favorite strategies was in play.

Quick aside here … I traded MJWL twice in the first hour of trading on May 24 based on the strong price action. One trade was a $1,910 win and the other was a $2,484 win. So I still took advantage of the opportunity — just not the full potential.

The important thing to remember is that all three trades came from the same strategy.

It’s the very same strategy that helped me make $123K over the weekend, from my dorm room, while still in college. And it’s the same strategy that I used to make $69,962 from a yacht while filming “Below Deck” with a group of students.*

So, how did I know? Keep reading because I’m going to show you exactly how I did it. And how I often enjoy weekends while making killer money without having to sit in front of my laptop trading crypto or forex.*

More Than Pattern and Price Action

Keep in mind that just because it looks like the right pattern, that doesn’t mean it fits the strategy. Sometimes stocks gap up over the weekend even when my indicators don’t align. So the pattern plays out, but the odds are lower. I tend to avoid a trade like that unless all my indicators line up.

A good example is INVU on March 26–29, 2021. I was giving a live Trading Mastery webinar on Friday, March 23, when INVU suddenly spiked around 3:05 p.m. Eastern. Some students familiar with my strategy asked why I wasn’t taking the trade.

Simple — all the indicators weren’t there. One thing, in particular, was off. That’s why it’s so important to understand the nuances of the strategy. It’s not easy to learn and requires study. But as they say, the devil’s in the details.

Here’s the chart. The yellow circle shows where it happened…

invu stock chart
INVU chart: 6-month, weekend gap but indicators not right — courtesy of StocksToTrade.com

Thanks mostly to promoter hype, INVU did gap up over that weekend. But the odds just weren’t there for me on Friday. And I don’t regret missing the trade.

Again, this is why you have to learn the entire strategy and not just the pattern. Looking at the chart in hindsight it seems like a no-brainer, right? But what if the promoters pulled the plug? At the time, there were promoters suddenly deleting Twitter accounts. The SEC was even alerting investors about fraudulent stock promotions. So it was a no-go for me — too much risk.

Fridays Are Special, But It Can Happen Any Day

One thing to know is that while I love to use this strategy over the weekend, it also plays out during the week. The main difference is important — and I’ll explain it all during the webinar. But to show you what I mean, check this out…

On August 19, I received an alert about this news…

The alert came in the morning, even before the market opened. Usually, I like this strategy better if the news hits on a Friday afternoon. But, again, there are multiple indicators. I watch seven indicators on every trade. In this case, the news created enough buzz for me to trade a variation of the strategy…

TSOI chart: 6-mo, news based gap strategy — courtesy of StocksToTrade.com

It wasn’t a huge trade — only $641 in profits.* But it shows the strategy works even during a tough August market. And, as long as the indicators line up, it doesn’t necessarily have to be a Friday.

Here’s another example to show you it’s not just me…

Matt Monaco’s Perspective Shift

Back in March, one of my millionaire students, Matt Monaco, used this very same strategy to profit over the weekend. On Friday, March 12, he got an alert about this news…

As Matt tells it…

“I learned your strategy and can tell you it definitely changed my perspective on weekends. I opened this AABB trade on Friday, enjoyed my weekend, and closed it out on Monday for $35,141 in profits!”**

Here’s the chart…

aabb stock chart
AABB chart: 6-month, weekend profits strategy — courtesy of StocksToTrade.com

One thing to know about this trade by Matt is that he was trading big size. Which usually means sizing in and out. He also had a big starting stake of $264,500. But understand that the strategy can work for small accounts, too.

Actually, I think it’s the best strategy for anyone under the PDT rule. Why? Because you don’t have to waste a day trade on it.

Here’s one final recent example. And it shows why this is…

My Favorite Strategy for Small Accounts

Anyone with knowledge of the strategy could do this trade. Even those under the PDT. On August 13, this headline popped up in my alerts…

As you can see, the news hit in the morning again. It’s not an exact science. But everything lined up that day. So about 15 minutes before the close, I bought shares.

The overall market was weak to start the next Monday. So the trade wasn’t a huge win — only $450 in profit.* Crucially, had I held at the open, this one would’ve turned into a loss.

Check out the chart…

GMER chart: 6-month, weekend profits strategy — courtesy of StocksToTrade.com

That’s another reason you MUST understand the nuances. This isn’t just a ‘buy any old spiker late in the day’ play. You also have to know how, and when, to exit.

And THAT is why I’m giving a free webinar next Wednesday, September 1. During the webinar, I’ll show you…

  • More examples of how this pattern works. (And why you MUST know when to open and close the trade.)
  • How this strategy is based on a little-known market anomaly. (One economist even won a Nobel prize…)
  • And why some news, at the right time, is far superior to other news.

Plus, I’ll show you how I’ve used this very same strategy to make $8,780, $9,518, and even $16,159 on weekends.*

There is NO COST to attend this webinar, but it’s on a first-come, first-served basis. If you don’t sign up, you could be left out.

**Join Me for My Upcoming Weekend Profits Webinar**


*Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work.  Most who receive free or paid content will make little or no money because they will not apply the skills being taught. Any results displayed are exceptional. We do not guarantee any outcome regarding your earnings or income as the factors that impact such results are numerous and uncontrollable. 

**Matt’s starting stake on this trade was $264,500. 

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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

* 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”