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Trading Lessons

How Traders Profit: Trigger Warning!

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Written by Timothy Sykes
Updated 6/21/2024 4 min read

Welcome to a new week full of profit opportunities for traders!

Anyone who wants to spend time this week whining about losses: Use that time to STUDY instead!

There’s never been a better time to trade …

  • The 2024 stock market is on fire.
  • We could be in the middle of an INSANE AI bubble. This sector strength rivals the dotcom boom in the early 2000’s.
  • Keith Gill’s GameStop Corporation (NYSE: GME) warrants expire at the end of this week. That’s sure to reignite meme-stock volatility.
  • We’re approaching a volatile election at the end of 2024.
  • There’s still a Holiday season ahead of us.
  • Once the FED lowers interest rates, the bullish momentum will likely start all over again.

There are trade opportunities GALORE right now. And you don’t need much money to start!

For example: One of my students who’s approaching the $1 million milestone, Chris Schunk, was trading runners like Reliance Global Group Inc. (NASDAQ: RELI) and MGO Global Inc. (NASDAQ: MGOL) last week.

The share prices on those stocks never pushed above $2.

See his post on X below:

Source

These are amazing profit opportunities.

My students and I are REAL.

But I’ll admit, sometimes I still catch myself in disbelief at the possibilities of today’s world.

Take a look at Chris’s post below for some context:

Source

Trade Opportunities This Week

You don’t need to trade all day every day.

Actually, I discourage that mentality.

All it takes is a few good trades a week.

The only issue is: You need to find the right stock in time.

Last week there were a lot of GREAT trade opportunities. And most of the spikes are still in play!

Take a look at last week’s runners below:

But the trade opportunities don’t last forever …

My students got trade alerts for each stock before the price action turned vertical.

Let’s use MBIO’s spike from June 17 as an example. Take a look at the chart below with the trade alert overlaid, every candle represents one trading minute:

MBIO chart intraday, 1-minute candles Source: StocksToTrade

The alert came during premarket. Before the market even opened for regular hours!

Take a look at what happened next:

MBIO chart intraday, 1-minute candles Source: StocksToTrade

The price levels are different in the multi-day chart because MBIO held a $2.5 million offering on June 20. The influx of shares messed with the chart’s price levels. It’s a ratio issue.

Every day this week:

  • I’m going to wake up.
  • I’ll log in to StocksToTrade.
  • And I’ll wait for the next Breaking News alert.

In the famous words of Woody Allen:

“80% of success is showing up”.

Make sure to show up this week!

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

* 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”