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Trading Tips-Tim Sykes Penny Stock

Where to Make Money in This Market

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Written by Timothy Sykes
Updated 6/13/2022 5 min read

Lots of traders are feeling burned by the markets, and who can blame them?

Millions of people bought the market in March 2020, taking a one-way ticket to profit town.

Now, the ones who invested in Bitcoin (BTC) and Ethereum (ETH) are getting pounded into the ground.

Yet, one of my students saw this as an opportunity to take the other side of the trade and hit bank.

And so did many of his subscribers!

In fact, there have been multiple places in the penny stock world to find opportunities.

Here’s where I see them.

Biotech Breakouts

At any given point, there are literally thousands of biotech companies completing research, working through trials, or seeking approval.

Any one of these announcements can send shares soaring.

Take Day One Biopharmaceuticals Inc. (NASDAQ: DAWN). Shares soared on Monday after the company reported positive results from a drug trial.

Our Breaking News Team picked up on this stock right before it jumped another ~33%

I know some traders who exclusively trade these tiny biotechs.

While it can be tricky, it helps to maintain a list of companies along with expected catalysts and dates.

For example, you might follow Soligenix Inc. (NASDAQ: SNGX) to see when it’s SGX203 for Pediatric Crohn’s Disease could complete its Phase III trial. Mark the tentative completion date on your calendar and be sure to follow up on it.

The 8:30 a.m. Press Release

Maybe you’ve noticed this before, but a lot of small and micro-cap companies love to send out press releases around 8:30 a.m. Eastern.

Most of the time, this is just garbage pushed out by promoters that gets retail excited to pile into the name.

But, it creates plenty of opportunities for trading setups such as morning panic dip buys.

You see, promoters love to push the stock higher so they or whomever they represent can sell shares at a higher price.

They’ll try to scoop up shares whenever the stock faces heavy selling.

I use this to enter the trade alongside them for some fairly quick long trades.

This is what I did with Wikisoft Corp. (OTC: WSFT) a day after the stock made a huge run on some laughable news.

For anyone trading the market, I always recommend studying the price action of stocks like these for several weeks before putting any real money to work.

Look at how they move, see what happens when volume comes in and when it subsides.

Do this for both the premarket and the regular session.

And take notes.

My office used to be littered with trading journals where I put down my thoughts and observations.

Set Up a Morning Process

Every morning, I look to the same places for trade ideas.

First, I go to my watchlist. This isn’t anything fancy. Just a list of names that I’ve traded recently or want to keep an eye on.

Second, I look at the Breaking News in StocksToTrade. We hired some of the best analysts around, so I might as well take advantage of it.

These guys not only curate the news down to bite-sized, actionable ideas, but also highlight when large chat rooms are active in a particular name.

Lastly, I run a screener on the StocksToTrade platform.

It’s a simple screener that tells me which stocks are moving in premarket with heavy volume, as well as their float. The great part is I can quickly see if there’s any news related to the results.

Plus, it’s a great place to check out our Oracle tool which automatically calculates support and resistance levels in the premarket on the hottest stocks.

Follow the Trader

When I get a new student, the first thing I do is explain my mantra — keep your losses small and fast.

None of my millionaire students got to where they are overnight. It takes time and practice.

But you can get there.

I know that’s difficult, especially now with markets going haywire.

That’s why I walk students through my trading process, showing them how I look for setups, and letting them see the trades I take.

My goal is for every one of my students to find their own style and become a successful trader.

And I can’t wait for you to join me.

—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”