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How To Prepare For The Stock Market Open Tomorrow

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Written by Timothy Sykes
Updated 1/10/2023 17 min read

Even though it’s Sunday I want you to start thinking about and preparing for the stock market open tomorrow as I’ve found a big reason why most traders fail is due to lack of preparation…don’t wait until 9:20am EST tomorrow to prepare your watchlist, do it TODAY/TONIGHT and be 100% ready for all the opportunities tomorrow morning!

That’s one of the biggest keys to becoming my next Millionaire Trading Challenge student like this great trader.

So definitely go over your big % gainer scans here and also take some time and reflect on what patterns have (speculative blockchain/crypto-news morning breakouts) and have not been working (earnings winners on day 2) lately…

The last market days I taught a dozen students in-person, go here to join the next training session and I LOVE teaching this way because it really helps students focus on good habits like patience. Please congratulate my student “Huddie” here who made $5,000 in 2 days and more importantly stuck to his watchlist and plans to a T and was rewarded for his solid discipline…this is now his 3rd year and he’s studied hard so he REALLY gets it so he actually traded the 2 stocks he profited on better than I did.  I love it when the student becomes the teacher!**

So, watch and learn from this video recap of the past 2 stock market days that I’ve also had transcribed below for my valued deaf Trading Challenge students:

Hey, what’s up? Tim Sykes here. It is the weekend. I’m not feeling so great, but there are no days off. And I want you to use the weekend to study, to reflect on your recent trades, to reflect on recent patterns. It doesn’t matter if you’re sick or not. You know, the stock market is open every single week day, and every single weekend, you still have the opportunity to learn from your successes and mistakes.

The past two days, I’ve been doing a Tim Sykes’ Inner Circle training, teaching a few students in person. I love doing these, you know. I mean, this is frankly why I’m sick just because, usually, my schedule is crazy. This makes my schedule even crazier. But it really helps students to learn in-person and hands on. I’ll include a link where you can apply to come to my next one. It’s gonna be in March and then I think we’ll do one in May. It’s like every month or two. But just apply here and if you wanna learn in person, we do it either in Miami, New York, sometimes LA. We’re gonna do one in Europe this summer. I’m gonna try to do it everywhere because it really, really helps you guys just to fine tune the process, it helps you understand, excuse me, which patterns are best. You know, I took a little video, I posted it on Facebook, check it out for a sec. How do I do this?

All right, made roughly three grand today. And former students, how did you guys do today?

Man: F IT! I missed the execution.

Tim: Don’t swear on video. People are watching, kids are watching. How did you guys do? How much did you make today?

Michael: Three grand.

Tim: You made three grand today too?

Michael: Yeah.

Tim: Give him a round of applause. He’s freaking amazing. And you were in the stock that I bought before me. How did you do it? How did you spot it?

Michael: OTC, multi-day breakout.

Tim: Let me zoom in. Hold on. All right, what is it?

All right, so this is Michael. Huddie is his username on Profit.ly. He actually came to my last mastery in LA a few weeks ago too and he did not have one red day in two weeks after coming here. And I’m not saying that like it’s like magic or anything, but it does help you get more disciplined. And if you look at his overall winning percentage, it’s roughly 50%. He’s made 60 grand. He made three grand the first day of this mastery and two grand the second day. Traded better than I did on both days. I made like 3,500 the first day, then I lost 500.** So I made like three grand over two days, he made five grand. I love it when students do better than me.** More importantly, you know, he’s blogging, he’s doing his watchlist, he’s sticking to his watchlist and his plans.

If you follow me on Instagram, which you should, you can go check out my story. I highlighted him and I just love it. I love seeing this. You know, he’s been in my challenge for several years now. And like I say, you know, if you don’t understand this stuff after two, three, four years, like you’re just not gonna get it. But he is getting it and look at his profit chart. I mean, it is just awesome. I think he took some time off, but now, you know, when it’s clicking, it’s really clicking. You know, he nailed the dip buy on KSHB. I dip bought KSHB too. I just did not hold that much and I was like second guessing myself. He actually told me, he’s like, “Sykes, you should be more patient.” I’m not a patient person. You guys can be more patient. You can be better than I can and that’s cool.

POTN, he nailed the dip at 30 cents a share. Hold on, let me get you a chart of POTN because this is probably the best trade of the week. This was POTN’s breakout. You can clearly see the multi-week breakout going back several weeks to the beginning of 2018. The high here was 29. It broke 29, went to 31, and then held 29 all day. I bought it at 30 after this, you know, chart was taken. Thank you, George, for saving this chart. You can see he labeled it, “POTN Sykes told me to save it.” That’s what he labeled it. And you should see charts like this. You should take screenshots of absolutely perfect breakouts. POTN had a perfect breakout. You had an opportunity…

Actually, the morning spike turned out to be not much. You had an opportunity to buy the afternoon breakout at 30 like I did. It went on to like, I think, 33, came back down to 30, and then it went up to 37, and the next day it went to 40. So a nice little 30% plus gainer. But you had multiple opportunities to either buy the breakout or buy the dip when the breakout was confirmed, when it held 29 in the afternoon here, and then the next day, it held 30. So Huddie nailed it both times. You know, he actually held it all day, which… You know, he’s very patient. Tim Grittani is very patient, Steven Dux, they’re all very patient. That’s their strategy and that’s cool. That works for them.

POTN, I did not have a position all day on Thursday. I was watching it out of the corner of my eye. I was actually doing, you know, one-on-one interviews with some students, and I had one guy, and I was like, “I’m sorry. I gotta stop this. POTN is breaking.” Because I saw that it held 29 all day and in the afternoon, it opted a little to 30. And that’s when you have to just put everything else aside, when you see those kinds of key breakouts or breakdowns if you’re shortie. So Huddie held it all day and he was rewarded.** I simply waited for, you know, a little better catalyst, where there was a clear breakout, because I know that I’m impatient. You have to know your faults. It’s not about being perfect all the time. It’s okay if you’re impatient. It’s okay if you’re patient. You just have to, you know, utilize what you’ve got, and recognize what you’ve got, and recognize what you don’t have.

If I was in POTN all day, I guarantee you that I would have been faked out at some point and either made a half a penny or lost a half a penny, but I would be out of the trade because it just wasn’t doing anything. And Huddie has the patience. He was fine. I think he actually sold half his position and then I think he re-bought. And then the next day, POTN, when it opened at 37 or 38, it got back down to 30. And he re-bought the dip and he sold it a little too soon around 34, and it went all the way back to 40. So amazing, amazing breakout over two days. But I’m just so proud of Huddie and everybody else. You know, like, obviously, Michael Huddie made five grand in two days.** That’s pretty sweet. But every student who was there, whether they were trading, paper trading, or learning, practice makes perfect over time.

I have this one doctor, who’s, you know, not really even a real doctor. He’s a chiropractor and I give him shit for that. It’s actually kind of funny. But, you know, he is so dedicated. He’s been moving around his work schedule in order to trade. And before, he was trading with real money. Now he realizes, “Hey, I gotta practice,” and he is perfectly willing to paper trade and learn the process. And before, you know, when he first started, he wanted to make all his money right away, and he was telling the group, he was like, “Look, you know, I took several years, like nearly a decade, to learn all my skills as a chiropractor.” And then even as he was a licensed chiropractor, it still took him several years to master that. And I’m not saying this is gonna take you a decade to learn this. You know, this is not…there’s no doctorate in training. But it will take you a few years to get used to it.

So it’s important to have the right perspective. Huddie, you know, this is year three for him and he is nailing it. He is getting it. Before, his winning percentage, I don’t know, might have been 30%, 40%. Now it’s 50%, but it keeps rising and his profits keep rising. And I love the fact, you know, after every mastery, he does like a blog post. And I hope over the next two weeks he has no red trades. Again, if you have a red trade, is not the end of the world.

There was another student at my mastery that did a fat finger trade, where he meant to exit the position, and instead, he doubled up, and then he froze.** And, you know, I only found out about it like two hours later and he didn’t wanna sell because he was down like 500 and it was an unnecessary 500. But we all make fat finger mistakes. Okay? We all sometimes click the wrong number. Like we’re pecking at these little digits, these little keyboards on our phones and laptops.

Mistakes are bound to happen. But you cannot let a small mistake turn into a potential big disaster. And he recognized the mistake right away, but he held on because he didn’t wanna take the loss. It was still a stupid loss. You know, maybe it was like a blessing in disguise, it could come back, and he held, and he turned what probably should have been like a $50 loss into a $500 loss.** And, you know, I was like, “Dude, you can’t let this happen again. You know, no one trade is gonna make you rich.”

So if you think like that, “Okay, no one trade is gonna make me rich. If the stock doesn’t do what I want, I’m out. If I make a mistake and now I’m like kind of like psychologically impaired or like I’m emotional about it, I’m out.” It doesn’t matter if the stock comes back, okay? Because it’s not about what you make or lose on any one trade, especially in the beginning, especially when you’re trading with a small account. You want to practice good habits. So if you make a fat finger mistake, yeah, you’re probably gonna lose a little money, but it’s also an opportunity to practice good habits.

So every single time, if you are gonna do this over several years, over several decades, every single time you make a fat finger mistake, that is a blessing in disguise. It allows you to practice what will you do and how well can you minimize your losses? Obviously, you’re not looking forward to it, but when mistakes happen, when losses happen, you have an opportunity, and really, a duty and responsibility, to handle them the best that they can be handled. Do not just sit there like a deer in headlights. Do not double up and triple up and hope that it can come back, and then if it does come back, say, “Ha. I told you, Sykes, I don’t have to cut losses.”

I don’t care and you shouldn’t care if you make or lose $50 on a trade that didn’t go the way you expected. The most beautiful thing about Huddie’s trades here is not the profits. The profits are nice. But the fact that all of these trades… Look at this… I mean, this is a beautiful grid of profitable trades. The best part of this is that all of his trades now, he is formulating a plan, he’s putting in his watchlist, and he’s sticking to that plan. And whether the trade goes well or doesn’t, whether you sell too early or you don’t, you’re practicing good habits. That is what gets you good over the long run. That is what turns you into a millionaire in the long run.**

A lot of my top students are having record profits these past few weeks and past few months, even if they’ve had, you know, downside. Like, what was that guy’s name? Papa John. Is that is username? Papa John just keeps going by the way. I meant to do a longer follow up on him. Freaking awesome. And look at this, he was… Where is it? He was down 16 grand and now he’s up 10 grand, and it’s like, “How do you change this?”**  I mean, there were no signs whatsoever that he was on the right track here. But he was learning and he was practicing and he was cutting his losses.

And then, the beautiful thing is that it all comes back very quickly. You will be surprised at how quickly things come together, if you trust me if you focus on the process. And I know, trust me, I know it’s not fun to lose. I know it’s not fun to put in all this time and effort and have your friends and family say, “It’s not worth it. This is a scam.” I’ve heard all the negativity. But if you just trust me and if you wait for these kinds of perfect plays, it doesn’t matter if you’re sick, it doesn’t matter if you’re healthy.

Look, there’s another Papa John’s ad. I love that Papa John is advertising on John Papa’s page. But if you are prepared mentally and if you are prepared with experience, you will be shocked at how much you can make. It is not just about winning percentage. Papa John, his winning percentage is still 44%,** but if you look at some of his trades, his winners are bigger than his losers. Look at this. He lost 500 here, made triple that, made quadruple that, lost 400 here, lost 900 here, lost 800 here, lost 800 here, made 1,500, made 740, made 1,340. So his gains are bigger than his losses.**

I know some students where they lose 80% to 90% of the time, but they’re losing 20 bucks here, 50 bucks here, 30 bucks here, 50 bucks here. And then they win once out of, let’s say, 10 times and they win $1,500 or $2,000 because they practice cutting their losses and letting their winners run. So it’s not just about winning percentage. You need to think about how can you grow your account exponentially? How can you get your profit chart like this? And that’s what I want.**

I also gotta give props to Ed Bogey. He’s a third-year man too. Let me see. Is it Ebogey? I mean, he didn’t have losses, but he didn’t have that many gains and he stuck with it, and now his profit chart is going supernova. You will be amazed at what you can do once you get comfortable. And you cannot get comfortable in the beginning because this shit is weird. We’re trading weird stocks, the rules are weird, they’re very counterintuitive. But the more that you practice, year two, year three, year four, year five, it becomes a lot easier. And right now, we’re in a hot market.

So a lot of you guys think that you need all these amazing plays to grow your account. You need experience. You need practice to grow your accounts. And the good plays that are happening, it’s a good thing that they’re there, but not in the way that you think, not just to enrich you right away. The money that you make in month one, month three, month six, year one of your journey is irrelevant. But when every good play happens, you have the opportunity to practice and that is what you should be looking forward to.**

And I know this sounds weird, I know you’re just like, “Oh, I’ll just focus on the money,” but trust me, if you focus on the habits and the process first, the big money comes later. It’s amazing and I’m seeing it more and more with more and more students. Students who don’t know each other, they’re trading totally different strategies, different patterns, they have different personalities, but they’re all having the exact same success after several years.

So, again, sorry for my voice. I’m not feeling that well. I’m gonna go take a nap. But I’m so proud of so many of you. I love teaching. You know, I love teaching you guys in-person. Again, go click the link just below this video if you wanna learn in-person. We’ll get you into one or maybe even more of these little sessions. We only have like a dozen people each time. But talk with my team and I would love to teach you in-person. Congrats to Huddie, congrats to Papa John, congrats to Ed Bogey. Thanks to Tim Bowen for also helping me out. He’s a great guy. I don’t know. I gotta go to sleep.

Also, if you understand the lessons in this video, leave a comment saying, “No days off.” I don’t care if you’re sick, you can still, you know, study, you can still learn, you can still reflect. You don’t necessarily have to make a video like this. But just say, “No days off,” in the comments below and I hope you have a good weekend. Let’s prepare and get mentally prepared for next week. Lots of plays. I’ll send a watchlist later this weekend. Thanks!

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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”