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How To Trade In This Market

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Written by Timothy Sykes Reviewed by Jack Kellogg Fact-checked by Ellis Hobbs
Updated 2/27/2025 4 min read
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The Trump administration’s tariffs have begun to weigh on the market.

Regardless of your political views, we knew the tariffs would hit eventually.

And this week, Trump announced that the delayed tariffs on Mexico and Canada would start on March 4.

Look at the headline below:

CNBC headline on tariffs
Source

Here’s a chart of the recent S&P 500 ETF Trust (NYSE: SPY) price action, every candle represents one trading day:

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

It’s not the largest drop in the grand scheme of things.

But most investors sense that we’re still at the beginning of this tariff journey with the newly elected President Trump. Which doesn’t bode well for market prices over the next few weeks and months.

With all of the fear in this market, small-account traders who stay in cash are in a great position to capitalize on strategic and short term bullish volatility.

Like the 210%* spike on Binah Capital Group Inc. (NASDAQ: BCG) yesterday.

Look at the intraday chart below from February 27. Every candle represents one trading minute:

BCG stock chart
BCG chart intraday, 1-minute candles Source: StocksToTrade

BCG wasn’t the only runner this week while the market fell lower …

  • Wah Fu Education Group Limited (NASDAQ: WAFU) spiked 310%* on February 25.
  • Interactive Strength Inc. (NASDAQ: TRNR) spiked 160%* on February 26.
  • TRNR spiked 90% the very next day, February 27.

There are long-biased opportunities to profit right now in the market, we just have to approach them correctly.

How To Navigate A Down Market

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I already spoke about this a little bit in a blog earlier this week.

It’s essential to trade the front end of these stock spikes.

More Breaking News

I lost money trying to dip buy TRNR and Invesco ESG Revenue ETF (NASDAQ: ESGL) on the back end of their spikes.

Look at the examples below, every candle represents one trading minute.

Here’s where I lost money on TRNR from February 26:

TRNR stock chart
TRNR chart intraday, 1-minute candles Source: StocksToTrade

Here’s where I lost money on ESGL from February 27:

ESGL stock chart
ESGL chart intraday, 1-minute candles Source: StocksToTrade

We need to focus on the front end of these spikes.

Look at the charts again with support and resistance lines drawn over the spikes:

TRNR stock chart
TRNR chart intraday, 1-minute candles Source: StocksToTrade
ESGL stock chart
ESGL chart intraday, 1-minute candles Source: StocksToTrade

Use StocksToTrade’s Breaking News system to find these stocks after they announce news and before the spike turns vertical.

Then, look for breakout trade patterns from my 7-Step Framework.

Stay disciplined today, finish this week strong. And keep an eye on major indices for any sign of renewed bullish momentum.

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”