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Trading Recap

I Took an L on CUEN – But Still Made a Profit!

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Written by Timothy Sykes
Updated 1/19/2023 5 min read

Want to profit as a day trader?

I’m talking about consistent profits that lead to millions of dollars over time.

Well, you’ve gotta have a good sense of humor.

For example … I’m laughing at myself right now.

The volatility this week has been CRAZY! I’m seeing +100% spikers almost every day.

  • Cuentas Inc. (NASDAQ: CUEN) +140%
  • Genius Group Limited (AMEX: GNS) +150%
  • Celyad Oncology SA (NASDAQ: CYAD) +280%

And I missed out on pretty much all of them so far.

If I were a newbie trader, that would be really frustrating. And it would push me to make some bad decisions.

But I’m a seasoned vet …

I know the process to follow for success. I’ve been playing it for more than 20 years now.

And even though I missed out on all these huge plays, I didn’t lose a single cent this week.

I’ve made four trades in total so far.

And since 90% of trades fail … I’d say my process works pretty well.

Here’s how I profit while scoping out the hottest plays …

Take 30 Seconds…

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The best thing you can do before making any trade …

Take 30 seconds to analyze the chart. Identify key support and resistance, make a trading plan that includes risk, and decide when to enter and exit.

For a seasoned vet, it takes 30 seconds. Usually less time than that.

The more you expose yourself to these plays, the easier it gets.

I’ll show you how I royally screwed up on Cuentas Inc. (NASDAQ: CUEN) and still came out with a profit …

Here’s a link to my trade.

This was my entry and exit…

CUEN chart 1-minute candles

I like to panic dip buy. It’s my favorite pattern.

Obviously, on this trade maybe I should have paid more attention to a breakout strategy.

But these are the key components I took away …

  • I’m trading the right stocks
  • I’m staying conservative while I learn (I usually play OTC stocks)
  • I recognized weakness and was disciplined enough to get out with a small profit.

Without a trading plan, I might have held onto my shares and hoped for a bounce. As you can see on the chart. There wasn’t a bounce coming. I would have lost money for sure.

Face the facts. Without a trading plan, you’re just another gambler. And everyone knows, if you gamble, the house always wins.

I liked the chart because the price had dropped quickly and significantly from the highs. And when I bought in, there was a huge green volume candle. That’s a big component of my panic-dip-buy pattern.

But when there wasn’t a bounce, I knew something was wrong. So I didn’t get greedy. I sold my shares and moved on.

That’s the mindset all my millionaire students have. It’s how we stay consistently profitable.

The key is managing losses on failed trades.

This was a failed trade … but I still made a profit. Even my bad trades are good ones!

Now, let’s focus on your account …

How To Grow

tim sykes on laptop computer by Lake Como
© Millionaire Media, LLC

The panic-dip-buy pattern is viable.

Just look at this chart of Vision Energy Corp (OTC: VENG)

VENG chart 1-minute candles

Of course, I didn’t trade it.

I’m a busy guy, I can’t watch the market all day every day …

But I also realize, despite the panic-dip-buy success. It’s not for everyone.

I have 30+ millionaire students and they all trade differently.

The core process is the same. It’s the bed rock of our success. But there are hundreds of ways to profit in the market.

Don’t get overwhelmed … focus on one or two strategies at a time. There are only a handful I use …

This is the panic-dip-buy pattern I keep talking about …

But if you’re looking for something else, check out the recorded live stream I held with Mark Croock last Wednesday.

It’s fresh and up to date content …

He shares with us his top profit strategy right now. A pattern that yields +100% profits in less than 24 hours.

Here’s the link.

All my millionaire students shopped around looking for the best strategy until finally each of them found one that worked specifically for them.

That’s how you should approach this market.

Get curious and start exploring!

But always remember to take those 30 seconds …

 

— Tim


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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 (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”