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Trading Recap

I Nailed GGII for +27%

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Written by Timothy Sykes
Updated 9/4/2022 5 min read

Not everyone has the time to day trade.

Most folks work 9-5 to support families and build up their retirement nest egg.

The good news is I’ve got something for you.

I designed my Weekend Trader for anyone who wants to put a little extra change in their pockets by Monday morning.

Last week, I sent out an alert mid Friday afternoon that I bought shares of Green Globe International Inc. (OTC: GGII).

My $0.011 entry price turned out to be fire.

Before the day even finished, I started to lock in profits.

When Monday morning rolled around, the stock was up HUGE!

I managed to walk away with a tidy profit.

See all my trades right here.

A lot of you probably want to know why I picked this stock when I did.

Don’t worry baby birds. I’ll feed you.

Plus, I’ll explain how I reduce my risk when I enter these trades.

News You Can Use

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All of my trades start with a catalyst. Something that gives the stock an extra punch to get shares moving.

GGII came across my screen courtesy of our Breaking News team on our StocksToTrade Platform.

These guys do a fantastic job of serving up the headlines and context I need to make my trades.

Over the last few weeks, initial public offerings (IPOs) have been on fire.

Just look at the incredible rise and fall of AMTD Digital (NYSE: HKD).

That stock gained over 2,000% in a matter of days!

But it’s not the only one.

That’s why GGII caught my attention.

The company’s IPO spinoff was set for the following week.

Leading into the weekend, there had been a ton of hype with promoters all over this stock.

So, it made all the sense in the world that this could easily catch a bit.

The Setup

Shares caught a bid starting on Thursday, with a lot of volume hitting shortly after the open.

In one day, the stock skyrocketed almost 200%.

Normally, I don’t like to buy a stock the day after its first big move.

However, I made an exception here for two reasons.

First, the stock fit into the IPO category I’ve seen lately.

Second, stocks like to float into the close on Fridays.

Since shares jumped quickly out of the gate on Friday, I gave the stock time to settle down and show its hand.

A little past 2:00 p.m. Eastern, shares started to break through the morning high.

This put the trade idea at the right time of the day on the right day of the week.

I bought the breakout expecting shares to continue to climb further.

Up until that point, GGII had traded in a fairly narrow range save for the opening minutes of Friday.

As shares climbed, I locked in profits just past 3:00 p.m. and held the rest for Monday.

Many of my students didn’t understand why I did that when I expected shares to keep moving.

The reason is simple – risk management.

The broader market cratered on Friday. While it usually doesn’t impact OTC stocks, it can.

I didn’t want to take the chance of waking up Monday morning to see GGII faceplant.

Scaling into and out of positions optimizes profitability since we never know where the absolute top or bottom might happen.

The Results

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With a nice spike on Monday morning, I closed the rest of the trade by selling into strength.

Between the two exits, I sold a bit more than half on Friday with the remainder on Monday morning.

This setup was dynamite if you knew what to look for.

September and October are the trickiest months to trade. More crashes happen in the next 60 days historically than any other time of the year.

Look for trends and themes within the news to give your trades a boost. Don’t just go for the popular stocks.

Find the ones with the best setups and stick to your guns.

Discipline is the name of the game.

—Tim


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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

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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 (205) 851-0506 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”