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Trading Recap

Last Week’s Action Was Unreal, But Can It Continue?

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Written by Timothy Sykes
Updated 1/23/2023 4 min read

Happy Monday!

Welcome to a new week.

Make sure to stretch, shake things out, and get some food in you.

There are profit opportunities ahead.

I’m here to help out, but you’ve gotta do the work. So make sure to prepare …

Last week, even though the market dipped, my niche stayed strong.

We saw spiker after spiker.

I don’t want to crowd you with too many charts so I’ll just share Genius Group Limited (AMEX: GNS), it spiked +870%….

GNS chart 2-minute candles

And that’s not an isolated instance for our niche … we see moves like this every week.

I’ve been showing traders how to capitalize on them for 15 years. And the results speak for themselves …

Last week Jack Kellogg raked in +$43k.

That’s close to what some people make in a whole year.

But don’t focus on profits that high in the beginning … you’ll just get frustrated.

I’ll show you how to start small and grow your account reliably over time. It’s how all my millionaire students did it.

Everything you need is in today’s letter …

Small Account

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A lot of people think starting with a small account is a handicap.

They’d rather have a couple hundred thousand to work with … probably so they can withdraw some of that cash to pay their rent.

If you want money, you’ve got to work for it. Simple as that.

And small accounts offer a couple of unique benefits.

I filmed this video a few months ago but it still applies …

Honestly, it all comes down to initial position size, your level of experience, and sizing up.

It’s good to start small because, in the beginning, we don’t know what we’re doing.

This applies to me as well. When I was testing strategy after strategy in my college dorm room, they didn’t all end well. Had I been trading big in the beginning, I could have lost everything.

Be thankful you’ve only got a couple of hundred dollars to use.

It helps you learn the process.

Focus on the percent gain. Not the dollar gain.

Then, once you’ve achieved consistent profitability, play the exact same patterns but increase the position sizes for larger profits.

It’s easier said than done.

But the process is very simple.

As long as you follow the process, your account will last longer, and you’ll have a better chance of understanding and profiting in the long run.

How To Grow Quickly

timothy sykes in matera in 2022
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I recently filmed a new video answering a common question I get asked …

An easy answer is: it’s different for everyone.

It depends on your background, your current level of understanding, how much work you decide to put in, how skilled you are at learning new content, etc. …

But that’s kind of a fluff answer.

I’ve got a better one …

I can show you everything you need to know to be profitable. It only takes 30 days.

At the end of these 30 days, you’ll be fully equipped to navigate the market safely.

And I guarantee you, trading will never be the same ever again.

Start your 30-day journey right now.

What better way to start a new week of trading?

 

— 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”