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Trading Lessons

How To Ride This HUGE Looming Catalyst

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Written by Timothy Sykes
Updated 3/29/2024 4 min read

Last time this happened, the S&P 500 ETF Trust (NYSE: SPY) rallied 100%.

And it’s all thanks to specific action the government took in response to the COVID pandemic.

Take a look at the SPY chart below, every candle represents one trading day:

SPY chart multi-month, 1-day candles Source: StocksToTrade

Don’t worry, there isn’t another pandemic on the horizon.

This time, the government is scheduled to behave the exact same way. But it comes as the market is already in the midst of a red-hot AI and tech sector push.

The SPY already spiked 12% in 2024, there’s a chart below:

SPY chart multi-month, 1-day candles Source: StocksToTrade

And back in 2020, the COVID pandemic toned down the effect of the government’s intervention. This time around … We’re in an opposite position.

And I’m struggling to even imagine the bullish momentum that’s about to hit the market.

Analysts expect the impact to value around $2 trillion.

And it all points toward a fever-pitched buying spree. Here’s how to capitalize:

3 Out Of 4 Stocks Follow The Market

© Millionaire Media, LLC

When the market is on a bull run, there are more profit opportunities in our small-account niche.

Small-account traders don’t have the same leverage as a hedge fund that trades with millions of dollars. That’s why it’s more advantageous for us to focus on different stocks.

  • Let the hedge funds mess around with NVIDIA Corporation (NASDAQ: NVDA) and Super Micro Computer Inc. (NASDAQ: SMCI). The share prices are too big and the stock barely moves day to day.
  • We’re focused on low-priced stocks that can move +100% intraday.

The reason we’re seeing so many trade opportunities right now is because the market is so hot. March was insane! Traders are banking right now.

Look at the Tweet I reposted below:

And this is all happening BEFORE the incoming government catalyst. We’re in for a wild ride.

Another aspect about the catalyst … In 2020 no one could have predicted the global pandemic and resulting government intervention. But this time around, we have about one month to prepare.

It’s the exact same catalyst, and now we can see it from a mile away.

I’m holding a LIVE market briefing this Thursday on April 4 at 8 P.M. Eastern. Together we’ll cover:

  • The $2 trillion government catalyst about to hit markets.
  • The resulting bull market momentum.
  • Top stocks to watch when it happens.
  • The best strategies and patterns to use.

Reserve your spot now.

Nobody knows the next time we’ll see a government catalyst like this. It dropped right into our laps! And it’s about to affect the entire stock market.

I’ll see you on Thursday for the live presentation.

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 (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”