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How I Swing Trade Weekends

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Written by Timothy Sykes
Updated 9/6/2022 5 min read

I’m luckier than most folks.

And it has nothing to do with the millions I’ve made from trading.

You see, I had a family who supported me, and the time and discipline to become the trader I am today.

It wasn’t an easy path, and it forced me to make a lot of tough choices.

Between the training, trading, and sleep, I went from friends to mere acquaintances.

Day trading isn’t practical for folks who work a 9-5 and haul the kids to soccer practice on weekends.

That’s why I built Weekend Profits.

Not everyone can spend hours studying every week, let alone sit in front of the charts.

But most folks can take swing trades from Friday into Monday.

As I’ll demonstrate how to in a minute … All you need is a simple premise to score solid wins, just like I did with Asia Broadband Inc. (OTC: AABB).

Screen For Movers

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The first place I start on Friday is our StocksToTrade screener.

My saved screener presets allow me to quickly identify the tickers that meet my criteria.

The cool part about this screener is that it runs continuously. So, when a stock starts moving during the day, I can spot it immediately.

In general, I look for stocks with the following:

  • Up 10% or more
  • Increased volume
  • Former Supernova
  • News release about an upcoming event

I want to dig into that last point a bit more.

Stocks tend to climb into important events. I’m not referring to something weeks away, but the following week.

The event should be material to the company, such as earnings, or product launches.

I get the majority of my news from our Breaking News Chat Room on the StocksToTrade platform.

Asia Broadband Inc. (OTC: AABB)

AABB announced plans to launch a crypto payment solution on September 7. The original release date was August 25.

As the date approached, another article was released September 2 on Yahoo.

This article, which you can read here, looks legit, except that it’s sponsored content.

I don’t care that promoters are hyping up the stock. In fact, that makes the trade even juicier.

However, it highlights why I don’t hold these stocks long-term.

Take a look at the daily chart below.

The initial press release pushed shares higher on decent volume.

Rather than fade, the stock held between $0.05-$0.06.

This indicates buyers holding up shares into the catalyst event.

Now, let’s dig into the price action from Friday.

I’ve drawn arrows to highlight the runs and pullbacks throughout the day.

The prior high from the 25th came in at $0.065.

The first push took the stock over that high and pulled back exactly to the penny of $0.065.

The next move made another new high with a shallower pullback,

All of these movements occurred on decent volume.

I jumped in as the stock was making its last run.

Going into a holiday weekend, stocks tend to float into the close along trend they held throughout the day.

Taking all this information into account, the trade looked for a continuation into Tuesday of the following week.

Part of why I jumped in where I did was the massive increase in volume.

You can see a stack of green candles clumped together just before shares take off.

This kind of price action is like stretching a rubber band and then letting it snap.

The buyers built the pressure that eventually released to the upside.

Weekend Words of Wisdom

understanding first red day pattern trading
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The key component here is the event catalyst for the upcoming week.

However, this alone doesn’t make the trade.

I need to find other technical reasons and see confirmation in the price action.

The more reasons I have to take a trade, the more likely it is to work out.

One last point.

I want the stock to close at or near the day’s highs. The goal is to see a continuation of the move into the following week.

That’s more likely to happen when a stock finishes at the highs.

Otherwise, I may be inclined to cut the trade before the close.

And remember, this is a trade. I take ones that I expect to work out with the full knowledge they may not.

My goal isn’t to win every trade. It’s to make money over time.


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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”