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Trading Lessons

How My Students Trade Right Now

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Written by Timothy Sykes Reviewed by Jack Kellogg Fact-checked by Ellis Hobbs
Updated 11/14/2024 6 min read
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It’s Tim Sykes here.

This 2024 market is insane!

The overall market is ripping higher.

  • Let’s say someone bought shares of the S&P 500 ETF Trust (NYSE: SPY) at the beginning of 2024. At the current prices they’d have a return of more than 20%.

But my students are more interested in the momentum among individual stocks. That’s where the real profit opportunities are!

Forget about a 20% return on the year. Try a 20% return in a few minutes!

  • On Thursday, November 14, my students and I watched AgEagle Aerial Systems Inc. (AMEX: UAVS) spike 200%*.

We’re not trying to catch the whole move, just the part of the spike that matches our trade patterns.

Here’s an example that was posted by one of my up-and-coming students:

Source

I can teach you these trading patterns.

For a new student who looks at a chart like yesterday’s UAVS, they can’t quite see the patterns at work.

Take a look at the UAVS spike below, every candle represents one trading minute:

UAVS chart multi-day, 1-minute candles Source: StocksToTrade

Not sure where to find entries and exits??

Don’t worry, I can clear it up for you here and now.

How To Find Trade Setups

© Millionaire Media, LLC

It’s no secret … The stock market is roaring right now.

And a lot of people have the same questions:

  • How do I get a piece of the pie?
  • Am I too late?
  • What’s the best strategy?
  • Which stock do I buy?

You’re not too late.

No matter where the market goes from here, there will be opportunities to profit.

Just look at the last four days:

The overall market slipped a bit. Usually three out of four stocks follow the market. And STILL my students are crushing it.

I included a post from X below:

Jack Kellogg is one of my most successful students. He’s raked in $13.2 million in trading profits since he started in 2017 (including losses).

Now … Understand that Jack is trading with a larger account, compared to when he started.

Something like a $500k profit on the month is attainable because Jack is able to spend money to make money.

But when he started out, he didn’t have $1 million to throw at a stock …

See his recent trade below:

Source: Profit.ly

Here’s the beauty behind this process:

The stocks that we trade are cheap. We can load up on shares and ride the momentum for larger percent gains.

For example: The stock that Jack traded yesterday, Federal National Mortgage Association (OTCQB: FNMA) never broke above $4.

You could start learning this process with $10 in your account!

The goal is to take it one trade at a time and size up as a trader grows comfortable with the process.

Here’s how we find these setups … 

Common Trade Patterns

© Millionaire Media, LLC

The patterns that we trade are part of a larger price action that occurs in the market. It’s called the 7-step framework.

Take a look at the full price action here.

Within the framework there are multiple patterns that we can use to make gains. Patterns like …

  • A first green-day spike.
  • Dip buys on the back-end of strong spikes.
  • Breakout trades.
  • Panic dip buys.
  • Multi-day bounces after a huge selloff.

For a new student, it can take some time to truly recognize these setups on your own.

Jack Kellogg started studying in 2017. But his first trade on Profitly is dated July 20, 2018. He studied for months before trying to apply this process.

Don’t worry … It’s not 2018 anymore. My students don’t have to wait months for their first trade.

In 2023, when artificial intelligence burst on the scene. I instantly recognized its potential to teach my students trading patterns.

The patterns are always the same. They’re based on human psychology. People behave similarly under stress, that’s what creates this framework.

After months of prompting my AI trading bot, it can call trade setups all on its own! My newest students trade with the AI as if I’m in the room with them!

Here’s an example of yesterday’s trade opportunity, alerted by my AI trading bot on Wednesday afternoon …

On the Pulmatrix Inc. (NASDAQ: PULM) chart below, every candle represents one trading minute:

PULM chart multi-day, 1-minute candles Source: stocksToTrade

Wait for this afternoon’s AI generated watchlist or …

>> Prompt the AI with the hottest stock intraday <<

It will spit out a trade plan as if you asked me directly

Let’s finish the week strong!

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”