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How To Build Wealth In This Hot 2024 Market

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Written by Timothy Sykes
Updated 3/7/2024 9 min read

Whenever we get a hot market, like the one right now in 2024, I always get to highlight new students who just started to profit.

And it’s an absolute pleasure!

Example:

Now, when the stock market is on a bull run, it’s easier for traders to pull profits. Because 3 out of 4 stocks follow the market.

We’re banking right now because there are more opportunities to profit.

On Wednesday we watched Aptorum Group Limited (NASDAQ: APM) spike 1,100%.

The very next day we watched Lytus Technologies Holdings PTV Ltd. (NASDAQ: LYT) spike 700%.

Attention: There will be more opportunities to profit today, Fridays are notoriously hot.

But … How a trader approaches this market determines their level of success.

There are two kinds of traders in the market.

The majority: They’re here to get rich quick. They’re not interested in safe plays. They think the stock market is an easy cash grab. And since 90% traders lose, these are the traders who usually forfeit their profits to the minority.

The minority: We recognize this is a marathon, not a sprint. We’re here to learn a process for profits that we can use for the rest of our lives. This is the 10% of traders who succeed.

My students and I are the minority.

There are a lot of people profiting right now because the market is hot.

But a year from now, even two or three years from now: Will you still have the skills to profit? Or are you just another one of the 90%?

The Key To Lifelong Profits

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My millionaire students are successful because they took time to prepare. They put in the work.

  • If you want nice teeth, you’ve got to floss and brush.
  • If you want to get fit, you’ve got to workout and eat healthy.
  • If you want good food, you’ve got to put effort into your cooking.

Anything worth having comes with a certain amount of work.

My students who are profiting now, they’ve been studying for months.

Conversely, when it comes to my new students, they see a stock like APM spiking and they recognize the opportunity as clear as day:

A 1,100% spike … $1,000 worth of APM on March 5 would be worth more than $10,000 less than 24 hours later on March 6.

Look at the insane intraday chart after APM announced a merger at 8 A.M. Eastern. From left to right you’re seeing premarket price action, intraday, and after hours trading:

APM chart intraday, 2-minute candles Source: StocksToTrade

Some of my new students don’t have the preparation to truly capitalize on these moves.

That’s OK.

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But don’t let yourself grow complacent. There’s always another opportunity right around the corner!

So, what are you doing to prepare for the next one?

  • Are you watching my YouTube videos?
  • Are you watching our Challenge live streams?
  • Do you check the market every day?
  • Do you have a watchlist with the best stocks in play right now?
  • Are you watching StocksToTrade Breaking News for the next trade alert?

Talk about preparation: Breaking News alerted APM in premarket. My students had ALL MORNING to build a position.

Take a look:

And when Thursday’s LYT started to spike, Breaking News alerted it during Wednesday’s after hours.

Take a look:

Some people want profits but they’re not willing to put in the work. They don’t want to use Breaking News alerts.

Instead, they use a crappy Robinhood account to try and get lucky … Those people are the majority: The 90% who lose.

Never Stop Pushing!

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This is a difficult niche. There’s no doubt about it.

If trading were easy, we’d all be millionaires.

But, there IS a process for profits.

  • Don’t listen to the toxic short sellers getting squeezed on plays like APM and LYT.
    • Some of these stocks are garbage. But we can profit off short term volatility. And squeezing short sellers adds to the momentum.
  • Don’t listen to the Twitter gurus who pump their positions and hide their losses.
    • They’re not part of the intelligent minority. They’re selling positions as their followers buy the deflating stock spike.
  • Don’t listen to ignorant but profitable newbies who think trading is easy.
    • The market’s on a huge bull run. 3 out of 4 stocks follow the market.

There are a small number of YOU who are doing this correctly.

You see the opportunity. You still recognize the risk. And you’re willing to work toward lifetime profits.

Understand: I can see and recognize your progress.

As we enter Friday trading, this is where we separate the men from the boys. The women from the girls.

The hard working traders from the gambling majority.

How To Approach Friday Trading

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There will be opportunities to profit today.

The stock market pushed to new all-time highs yesterday. The bull run continues. Take a look at the S&P 500 ETF Trust (NYSE: SPY) below:

SPY chart multi-month, 1-day candles Source: StocksToTrade

Pull up the StocksToTrade software today and flip through the built-in scan of big percent gainers.

Follow the price action of the hottest stocks. Make a trade if you see a good setup.

But … If you’re unprepared, now is the time to work toward Monday’s volatility.

There’s a new profit opportunity every day. And if you’re not ready on Friday, you have a perfect opportunity to prepare for next week.

The 90% of traders who lose, they’re going to spend Friday gambling with their accounts. Then they’ll go out and spend more money on the weekend. They’ll probably waste time watching Netflix shows. And when Monday rolls around, they won’t be prepared for market profits. And that’s why they lose.

Feel free to relax this weekend. But take an hour or two on Saturday and Sunday to prepare.

Don’t miss next week’s opportunities to grow your account! Put in the work this weekend.

And understand that you’re not alone.

I created the Challenge chatroom so that we can all collaborate and prepare together. No matter where you are in the world.

Follow the links that I shared in today’s blog post and soak up as much information as you can before Monday.

When the starting bell rings at 9:30 A.M. Eastern, we’re off to the races.

Everyone wants to make money … Few are truly prepared.

Cheers.

*Past performance does not indicate future results

 


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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

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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”