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Trading Tips-Tim Sykes Penny Stock

Your Key To BIG Stock Runners This Week!

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Written by Timothy Sykes
Updated 2/12/2024 8 min read

I told you to pay attention EVERY DAY during this hot market.

And look what happened on Monday morning:

BMR chart 1-day, 1-minute candles Source: StocksToTrade

Beamr Imaging Ltd. (NASDAQ: BMR) announced news during premarket and spiked 800% before noon Eastern.

Here are the catalyst details.

There were traders pulling profits while you ate breakfast …

And BMR is only the most recent mega spiker in a long line of volatile runners this year. It’s only mid February!

  • LUNR spiked 80%.
  • HOLO spiked over 2,000%.
  • INBS spiked 300%.
  • GRRR spiked 130%.
  • HKIT spiked 820%.
  • TOP spiked 150%.

I traded all of these stocks.

All for a profit.

And I’m not even that good of a trader …

MicroCloud Hologram Inc. (NASDAQ: HOLO) spiked more than 2,000% and reached a price of $50 per share during after hours. I sold my shares the morning before at $3.04 … Imagine if I held the shares for even an hour longer lolol.

I trade conservatively. That’s what works for me. But my students are free to fine tune this process.

There’s so much cash on the table.

That’s how students like Jack Kellogg managed to build more trading profits than me in a fraction of the time. I’m not that good of a trader: You can do better than me.

Here’s how we profit: There’s a specific process for success in the market.

Stick to the rules and pay attention to the hottest stocks right now!

Here’s how to capitalize:

BMR Trade

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We only focus on the best setups.

There are a lot of traders that didn’t even have eyes on BMR because they didn’t know what to look for.

Every single day we go over the hottest plays in the market LIVE and I explain WHY these are the strongest setups.

This isn’t rocket science, we can track the market’s volatile price action.

Here’s what I liked about BMR.

  • The price was below $5. A low share price allows for larger percent gains: that’s how traders profit.
  • The price was already spiking 90% in premarket. That’s a hint it could spike higher.
  • StocksToTrade shows the float is only 3.4 million shares. The low share supply helps prices spike higher when demand increases.
  • It had a trading volume above 1 million shares on the day. That ensures liquidity and shows popularity.
  • During premarket it announced a partnership with NVIDIA Corporation (NASDAQ: NVDA). NVDA is arguably the most popular company in the world right now. It’s surging to new heights as the tech sector scrambles for NVDA micro chips. This is HUGE news for a penny stock.

Hot Catalyst

The news came out at 7 A.M. Eastern and StocksToTrade alerted the move at 8:32 A.M. Well before the market opened for regular trading hours.

Once the starting bell rang at 9:30 A.M. I started to plan a trade using past price action.

Premarket resistance around $6.50 offered support for the stock.

That’s where I built my position. And if prices fell below $6.50 support I would have cut the loss.

But the price surged toward intraday highs and I took profits.

BMR chart 1-day, 1-minute candles Source: StocksToTrade

My trade notes are below …

Source: Profit.ly

That was an 11% profit on a stock that spiked 1,500%.

I’m too distracted teaching. Watch my video below to understand this volatile price action.

See what I mean? You can do better than me.

Now, some people are still trading small: That’s OK. Focus on the percent gain, not the dollar gain.

The market will always be here. Start small and size up as you grow more confident.

I encourage all of my students to start small. And they were all over BMR in the chatroom.

Source: Profit.ly

Multiple Strategies

© Millionaire Media, LLC

The stocks that we trade follow a broader framework.

It happens during max price hysteria because human beings are predictable during times of high stress. Like when a stock is spiking +1,000% intraday.

Within the framework, there are a few different profit angles.

One of them is the breakout trade that I made early yesterday on BMR.

I sold too soon. But there’s a reason: These spikes are unsustainable. The price of this stock was originally trading below $5. It’s a trashy company.

The partnership with NVIDIA doesn’t change anything. Most of this stock spike is due to hype.

And likely, there are short sellers blowing up because they know the company is garbage. 2024 is plagued with degenerate short sellers who cause massive short squeezes.

All of this means: BMR is bound to crash eventually.

I like to sell my shares before things turn south.

Plus … I can still profit on the way down.

Another pattern within our trading framework is called the panic dip-buy. When a stock spikes uncontrollably, the sell off is similarly volatile.

Usually the stock surges downward, reaches short-term overextension, and can bounce substantially while it’s on the way down.

I traded BMR using the panic dip-buy strategy yesterday as well. The price fell to support around $20 and rallied to $24 …

BMR chart 1-day, 1-minute candles Source: StocksToTrade

On this trade I pulled a slightly more impressive 22%.

Dip buys are my favorite patterns to play. So I usually do a little better …

Source: Profit.ly

More Opportunities This Week

© Millionaire Media, LLC

Hopefully you finally realize the IMMENSE opportunity for small-account traders right now.

But … realize that 90% of traders still lose.

Most people don’t understand these plays. They see a stock spiking and the greed instantly takes over.

It’s possible to lose money on a stock spiking +1,000% if you throw caution to the wind.

There’s a very specific process for profits in this niche.

And I’m teaching students EVERY DAY during trading live streams.

I showed you where to find the market’s hottest stocks right now: Low-priced runners with news.

You can try to trade the volatility on your own. Or you can follow the path my millionaire students took.

Here’s the link to our daily live streams.

Chances are: we’re planning another setup at this very moment.

I’ll see you in the chat!

Cheers.


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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”