timothy sykes logo

Patterns To Watch

How +400% Stock Spikes Follow The Same Patterns

Timothy SykesAvatar
Written by Timothy Sykes Reviewed by Jack Kellogg Fact-checked by Ellis Hobbs
Updated 9/2/2025 5 min read
How +400% Stock Spikes Follow The Same Patterns Thumbnail

We’re seeing back to back stock spikes in the market right now.

And the potential for gains is next level.

On Friday … A tiny penny stock spiked 460%* after it announced a new investment from Dubai and the development of a digital investment banking platform.

On Tuesday (the market was closed Monday for Labor Day) … Another tiny stock spiked 430%* as part of a massive short squeeze.

That’s two +400% spikes in a row.

Look at the charts below. Every candle represents one trading minute:

IPDN chart intraday, 1-minute candles Source: StocksToTrade
IPDN chart intraday, 1-minute candles Source: StocksToTrade
HWH chart intraday, 1-minute candles Source: StocksToTrade
HWH chart intraday, 1-minute candles Source: StocksToTrade

This price action is not random.

We can trade each of these stock spikes with specific patterns. For example, I used a classic dip-buy pattern to profit from Tuesday’s 400% runner.

I’m not the only trader doing this either …

I have dozens of millionaire students. All of whom:

  • Started with a small account.
  • And use the same process that I do.

Watch my video below for a full tutorial of this process:

And keep reading for more information about the two 400% runners that are still in play.

The Next Big Spike …

These two stock spikes, Professional Diversity Network Inc. (NASDAQ: IPDN) and HWH International Inc. (NASDAQ: HWH), both followed a specific set of factors that I look for in the market.

  • A low share price.
  • A big initial spike.
  • A low float.
  • High trading volume.
  • A catalyst to push prices higher.

You can find more specifics here.

Above all, the stock’s low float is what contributes the most to these volatile spikes.

The float represents the number of shares that are available to trade in the market. And when there’s a low supply of shares, the price spikes higher as demand for the stock increases.

It’s a simple law of supply and demand.

For our purposes, anything below 10 million shares is considered a low float.

And StocksToTrade shows that:

  • IPDN has a float of 1.3 million shares.
  • HWH has a float of 1.4 million shares.

As a result of the low float, the volatility is intense.

But the intraday price action follows the same patterns I’ve used for decades.

More Breaking News

These patterns continue to appear in the market because people are predictable during times of high stress. Like when they have a few thousand dollars in a stock that’s spiking +100%.

We’re essentially trading human psychology.

Look at the charts below with my notes overlaid. Every candle represents one trading minute:

HWH chart intraday, 1-minute candles Source: StockToTrade
HWH chart intraday, 1-minute candles Source: StockToTrade

We can trade these setups.

I missed most of the move on Tuesday because I sprained my ankle while on a hike. Ugh!

But I still managed to squeeze out a decent profit in the afternoon.

Look at my post below:

But a lot of my students were ready to go and capitalized.

Rewatch the livestream below from September 2, hosted by Matt Monaco and Bryce Tuohey:

Matt and Bryce are both millionaire traders who use my patterns to profit.

Study their thought process as they trade live in the video above.

And to super charge your trading account …

Learn my entire trade process NOW.

Cheers

 

*Past performance does not indicate future results

How much has this post helped you?

(0 votes, average: 0 out of 5)
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

* 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”