timothy sykes logo

Trading Recap

How I Safely Profited Off OCEA’s Wild Move

Timothy SykesAvatar
Written by Timothy Sykes
Updated 5/23/2023 7 min read

While most of the financial media are focused on the debt ceiling and its implications on the economy…

I’m out here trading stocks that are screaming up by +100% …

And that’s something a lot of newbie traders don’t understand.

The stock market isn’t the economy.

And when it comes to small-cap penny stocks, they are in a league of their own.

That’s why we consistently see stocks move 80%, 100%, and even 200% in a single day…

But how do you take advantage of stocks like OCEA, which opened at $7.30 yesterday and traded at $12 before lunchtime?

After all, stocks like OCEA are volatile and scary…it’s VERY easy to lose money trading them if you don’t have a plan or strategy.

I’ll show you how I profited off the trade successfully and share with you the rules I use for trading crazy volatile stocks like OCEA.

 

How I Find Plays Like OCEA

© Millionaire Media, LLC

It’s no secret that I’m constantly on the move. My charitable obligations have me traveling across the globe all year round.

And when it comes to trading under these circumstances, it’s just me and my laptop.

Most of the time, the WiFi is spotty…which just adds to the challenge.

I’m not one of those traders who has 8 screens, listens to various squawk boxes, and watches the talking heads discuss stocks on TV.

I have to be super-efficient with what I put on my screen.

That’s why I’m using the StocksToTrade Breaking News Chat to help me stay informed on what’s moving markets and the latest stock catalysts.

You don’t need to spend a lot of money on fancy equipment and tools.

The reason why I like StocksToTrade Breaking News isn’t that it gives me the latest stock market news and catalysts in real-time.

But it doesn’t something even more important.

It curates the news for me.

In other words, the two analysts who run the service utilize their experience and provide “color” to the headlines.

Imagine how helpful that is for newbies who are just learning about catalyst trading.

Anyways, here’s the news that set off:

Ocean Biomedical, Inc. (NASDAQ: OCEA) Announces Patent Award for Novel Cancer Immunotherapy Treatment, Granted for Prostate Cancer, Colon Cancer, Ovarian Cancer, Kidney Cancer, Breast Cancer, Glioblastoma, Melanoma, and Lung Cancer.

Post image

Get my weekly watchlist, free

Sign up to jump start your trading education!

The stock rallied from $5.40 to $7.54 in the pre-market.

Here’s the Breaking News Analyst mentioning the stock:

Source: StocksToTrade Breaking News

Putting Context Behind Your Trades

The other great thing about the StocksToTrade Platform is that gives me all the important stock structure information I need.

For example:

I know that OCEA has a float of around 33 million shares and was once a high-flying stock trading at $26.60. I also know that the average trading volume is 1.6 million shares.

This is all very super helpful information to have before you decide to place a trade.

How I Traded OCEA

© Millionaire Media, LLC

The market going into Tuesday was hot. Specifically, the Nasdaq has seen non-stop buying in mega-cap tech stocks like NVDA, AMD, GOOGL, and META.

And although I don’t usually trade those kinds of stocks…it’s good for my trading style.

A good, strong market will boost traders’ risk appetite. And spill over to the more speculative small caps and OTC names.

We’ve witnessed it recently, with triple-digit movers in HEPA and AVRO this week.

My plan for OCEA was to watch. 

It’s hard not to get FOMO when you see a stock skipping 50 cents higher with every blink of an eye.

But it’s soo EASY to get wrecked taking a trade like OCEA without a plan.

I planned to wait for a dip in the morning…

With the stock selling off from $9, I thought it would be a good place for me to take a shot.

I got in at $8.10, and before you knew it, I was peeling off the trade at $8.81.

So how did I trade this “safely?”

First, I was in the trade for small size. I only had 700 shares. That’s small for me. It might not be for you, so try to think in relative terms.

But one of the easiest ways to protect myself against highly volatile stocks is by position-sizing the trades small.

Second, I had a plan. Get out fast if it doesn’t move or work. And take profits near $9 if it did.

I aim for quick, consistent profits. And stacking small wins can lead to substantial profits over time. It’s how I’ve gotten to $7.4 million in career trading profits.

And it’s how I teach my students how to approach trading.

Third, I don’t believe in chasing these types of plays.

If you’re patient, you’ll find another opportunity, there’s no reason to chase any single trade in this market.

Being first offers the best chances to profit. But if you missed the Breaking News Catalyst…then I find it best to wait for a morning panic…and try to buy on a sizeable dip.

One last note about how I trade these types of stocks…

I don’t fall for the hype. I don’t trust these companies at all. That’s why I’m aiming for quick in-and-out profits. Newbie traders love falling in love with the story and catalyst…which can lead to making emotionally chaotic choices.

OCEA closed at $6.74…a significant drop from its highs of $12.08.

Take it one trade at a time…and learn from your losses and wins.

I believe I’ve developed the best stock trading mentorship program in the world…But despite all the millionaire students, my program has helped…I’m ready for the next class of traders to step up and embrace the challenge.

===>Are you one of them?


How much has this post helped you?


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

Post image

Get my weekly watchlist, free

Sign up to jump start your trading education!

* 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 (205) 851-0506 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”