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How Jack Trades Bitcoin Stocks

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Written by Timothy Sykes Reviewed by Jack Kellogg Fact-checked by Ellis Hobbs
Updated 11/15/2024 6 min read
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It’s Tim Sykes here.

One of the hottest catalysts in the market right now is the immense bullish volatility coming from the crypto sector. Bitcoin specifically.

Last week it caused some stocks to spike +1,000%*!

Like BTC Digital Ltd. (NASDAQ: BTCT) which spiked 1,300%*. Take a look at the chart below. Every candle represents one trading minute:

BTCT chart multi-day, 1-day candles Source: StocksToTrade

We can trade these volatile spikes for a profit.

I’ve been doing it for decades. I use the same trading patterns over-and-over again. They never change because people always behave similarly when they’re stressed … Like when they have money in a Bitcoin stock that’s spiking +1,000%.

For me and my students, we step back from the emotions and learn to find key patterns that manifest in the market.

And no one does this better than Jack Kellogg.

Jack started studying in 2017. To date he’s surpassed my total profits and is sitting at $13.2 million (including losses)

He uses the exact same patterns that I do. But he’s managed to perfect this process to a greater degree.

And luckily, we’re all here to learn from him!

See my post below:

Here’s how we trade volatile stocks:

Our Trading Process

jack kellogg and tim sykes
© Millionaire Media, LLC

These patterns apply to all sorts of stock spikes.

It’s not just Bitcoin stocks …

For example, last week we also saw a spike from CERo Therapeutics Holdings Inc. (NASDAQ: CERO). It’s a biotech stock that announced FDA clearance to start a Phase 1 trial for a Leukemia treatment.

The stock spiked 520%* from Monday to Friday.

So, this week, if you see a non-Biotech stock that’s spiking with a good news catalyst, don’t be too shy. You’re probably looking at a solid spiker.

Especially in this hot 2024 market.

I was almost completely burnt out after last week, LOL. See my post on X below:

I made sure to rest over the weekend and now I’m ready for another week of madness!

OK … Back to the trading process.

BTC Digital Ltd. (NASDAQ: BTCT) is a Bitcoin stock that Jack traded last week. I posted an example below:

Source: Profit.ly

Jack is trading with a hefty size, but keep in mind: BTCT never spiked above $30 intraday. And it was trading below $3 at the start of last week.

You don’t need a lot of money to learn this process. Even Jack started small. Then he sized up as his account grew larger.

And it’s true, my students and I all use the same patterns to trade. They’re part of a larger framework …

This is the entire 7-Step Framework.

But within a single stock spike, there are multiple patterns within the framework that a trader could use to profit.

That’s why my profits are different from Jack’s, and different from Bryce’s, and so on …

Let’s look at BTCT for some examples.

Price-Action Example

© Millionaire Media, LLC

November 12 was one of the strongest days for BTCT last week.

We’re going to zoom in on that price action and I’ll point out some profitable angles.

But keep in mind … Hindsight is 20/20.

When we’re trading these stocks in real time, we need a plan of attack. In case the trade falls apart. Nothing is guaranteed in the stock market.

While I point out some of these potential positions, think about potential entries and exits, including where you would cut the loss if the stock fell below your support.

Take a look at the chart below of BTCT on November 12, and keep in mind that this is just intraday.

There’s premarket and after-hours volatility too …

BTCT chart intraday, 1-minute candles Source: StocksToTrade

For new traders, all of these different profit angles can get confusing.

I used to advise that my students only focus on one trading pattern at a time.

Then they can add more patterns to their arsenal as they grow more proficient.

But in 2023, I found a way to teach my students all of these patterns at once …

I prompted an AI bot with these trades for months. And since the patterns are always the same … It wasn’t long until the AI started to call trades using my exact framework!

>> Prompt My AI With The Hottest Stock In The Market Today <<

It will spit out a trade plan as if you asked Jack or myself directly!

Cheers.

 

*Past performance does not indicate future results

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* 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”