timothy sykes logo

Penny Stocks News

Is The Bull Market Back?

Timothy SykesAvatar
Written by Timothy Sykes
Updated 3/30/2023 6 min read

I feel like a broken record…

Repeating the same advice over and over again. But it’s because I’ve seen so many traders fail.

They jump into risky trades and refuse to accept their losses, digging themselves deeper and deeper into a hole.

I almost fell victim to this destructive pattern in the first two weeks of March. But I caught myself before it was too late.

I reminded myself to stay patient, trade small, quickly cut losses, and always prioritize safety. 

It wasn’t easy to stay disciplined, but it’s paying off.

When the market finally bounced back, I was in a position to capitalize on the opportunities.

And that’s exactly what I did yesterday.

I want to break down those winning trades and show you where I see the best opportunities.

My Favorite Pattern Right Now

© Millionaire Media, LLC

Nothing seems to be working better than dip-buying intraday panics.

Specifically, big runners with catalysts.

If you want to learn more about the strategy…check out this video:

And this one too:

Of course, you can attend one of my live training sessions for even more info right here. 

The keys to executing the strategy:

  • Patience.
  • Don’t be scared to miss a move if you don’t get your price.
  • Make sure the ticker symbol has a promo or catalyst
  • Be quick to cut losses if it doesn’t move your way

And after a slow start in March…I’ve been racking up small win after small win.

Source: Profit.ly

Why I’ve Been Playing SIVBQ

high volume stocks how to find
© Millionaire Media, LLC

SVB Financial started trading again as an OTC stock under the ticker symbol SIVBQ.

There’s a ton of uncertainty surrounding the company and its stock price.

On the one hand, you’ve got the shorts who think the stock is a zero…and are aggressively shorting shares on pops.

On the other hand, you’ve got the quants and excel nerds who are running valuation models trying to decipher what the pieces of the company are worth.

This two sided-action, combined with fear and greed, is creating some incredible trading opportunities.

I don’t know what the company’s worth is or where the stock price should be. However, I don’t believe this will be resolved overnight. That’s why I’ve been looking for panic dip buying opportunities.

My first entry came yesterday when I saw a morning panic…

I was able to scoop up 7,500 shares at $1.20…and quickly flip them at $1.36.

I put in $9,000 on this trade and pulled out a profit of $1,172

A few hours later, the stock started dipping again.

I was looking for a crack under $1. I figured many traders put their stops at obvious levels…and once those levels break… there are a lot of panic sellers.

I could get more aggressive on this trade since I was playing with a lead.

So I bought 25,000 shares at $0.0962…and quickly flipped them at $1.02.

I put in $24,050 on this trade and brought back a profit of $1,450

Rinse and repeat.

One thing newbie traders do is get excited when they’re sitting on a winning trade. Greed overcomes them, and they tend to hold on too long. The position reverses on them, and their winner turns into a loser.

While I can do better to hold onto my winners, I rarely turn a winning trade into a loser.  My ability to get in and out of the trade quickly allows me multiple opportunities to trade the same symbol.

I tried trading SIVBQ a third time…this time when it cracked well below $1.

I got in at $0.92. But there was no bounce this time, as the stock continued to sell off, forcing me to exit at $0.862.

Source: StocksToTrade

I ended up losing $976 on the trade…

I had no business trying this for the third time…banking stocks were weakening. And it wasn’t exactly optimal trading hours… but I felt cocky after my two earlier wins.

However, I didn’t let my frustration completely ruin my day. I recognized I wasn’t disciplined enough and put myself on a temporary time-out.

Too many traders will try to revenge-trade after a bad loss.

However, experience has taught me not to go that route.

Despite being upset about the last trade, I’m super optimistic about Q2.

We can’t control what the market gives us.

But we can control how many trades we take and how much risk we put on.

Continue to focus on what you can control.

And when the market heats up… as it has been… you can take advantage of it.

If you want to learn more about my coaching program, click here.

How much has this post helped you?

Leave a reply

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

* 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”