Millionaire Mentor Update: Meme Stock Madness Part Deux

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Last week was pretty incredible. What started as a slow week turned into complete madness by Thursday.

For me, it wasn’t a big trading week. But for students who’ve mastered my 7-step framework and adapted it to meme stocks, it was wild.

Keep reading for more on meme stock madness part deux. First, please read and share this important message…

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Let’s talk trading. Just when it looked like we were heading into a summer slowdown, we got another taste of summer trading madness

Meme Stock Madness Part Deux

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Meme stocks had another wild ride last week. My premarket video lesson on June 2 focused on how to trade the current market environment. I told students to be grateful there weren’t any crazy runners because it gives them more time to study.

Then AMC Entertainment (NYSE: AMC) went absolutely crazy, closing up 95% on the day.

AMC’s comeback started the last week of May after Chinese conglomerate Wanda sold most of its stake. Add to the equation a successful weekend at the box office…

Free popcorn for shareholders and…

Short sellers who love pain and…

What do you get? Sky-high volatility.

Other meme stocks like GameStop Corporation (NYSE: GME) and Koss Corporation (NASDAQ: KOSS) followed suit.

Several top students banked on the AMC volatility.* Especially on Thursday morning. Check it out…

And that’s only a few. Kyle Williams also reported his new best day and best week. See Kyle’s Profit.ly profit chart here. Jack Kellogg reported back-to-back $400,000 days.* (Yes, you read that correctly.) See Jack’s Proft.ly profit chart here.

Those numbers are just insane. I’ve never had a $400,000 day. I don’t like the risk involved. But Jack’s greatness comes from his willingness to push. He’s ultra-competitive, like Tim Grittani. They want to be better traders every day. I respect that.

My Thoughts on Meme Stocks

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Some students have asked why I’m not trading these stocks. For me, even though AMC followed my 7-step framework very well, it trades choppy. Choppy, high-priced stocks are high stress. I don’t need that. But it’s also not good for anyone with a small account.

The way these meme stocks are trading with big chat room pumps and calls for diamond hands,  it’s not gonna end well. There’s a lot of manipulation going on. It wouldn’t surprise me if the SEC gets involved sooner or later.

That said, I’m watching very closely. Why? Because to me, it makes sense to…

Study Anything That Can Spike Parabolically

Let me give you an example. Last week we launched a new course on trading Pokémon cards. That might sound funny, and several students laughed when I told them.

I thought it was funny at first, too. But when Behman “Beamer” Zakeri explained it to me and told me how much he’s made, I couldn’t help but listen.

If I was just starting out …

I’d study anything that can spike parabolically. If you have a small account, you should focus on the most volatile niches. So while AMC was the biggest story on Wall Street, I didn’t have an edge. Which means I don’t care about it too much.

But altcoins, crypto, and Pokémon cards…

I’ll always trade and teach penny stocks. (Brand new to penny stocks? Check out my FREE Penny Stock Guide.) But I’m open to new ideas. Newbies should test a lot of different things. I’ve personally invested $100,000 in Pokémon cards now. My goal is to build a new school with the profits. (I’ll donate 100% of my profits to charity.)*

By the way … the Pokémon course is like a bootcamp. It’s all the basics. Check it out here. I encourage all my students to get the course. It will help you understand parabolic spikes in other niches besides penny stocks. The psychology of bubbles and parabolic moves applies to stocks, trading cards, crypto — you name it.

Mindset, Strategy, Dedication, and Persistence

Last week’s meme stock madness also led to two new seven-figure students in one day.* I have a special blog post coming. For now, please congratulate these two top traders in the comments below this post.

Roy and Brock have been in the Trading Challenge for years. So recognize this is NOT a get-rich-quick scheme. It’s a marathon. It requires the right mindset. Then you have to work on your strategy with dedication and persistence.

Like I said, it was an amazing week. Now let’s get to…

Trading Mentor: Questions From Students

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This very important question came up in my Trading Challenge webinar last week. Keep reading to understand why the PDT rule is more than just a number…

“I have $20,000 in my account. I’m debating on adding more to put me over PDT. I’m on the fence because I don’t want to overtrade. Currently, I feel myself wanting to hold when I shouldn’t because I know if I sell I can’t access the cash for two days. Thoughts?”

Never add money to your account to get over the PDT rule. It’s SO much better to earn your way out of it.

The PDT rule is kind of like a prison. The question is, do you deserve to be free? And the answer for most people is NO.

That prison isn’t to protect the world from you. It’s to protect you from yourself. If you’re under the PDT, there’s a very good chance that you don’t have the capability to manage more money. You don’t have the expertise, strategy, process, or discipline.

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So while most people complain about the PDT, they don’t realize it’s actually helping them. You don’t want to break out of a prison built to help you.

I know it’s no fun to be under the PDT rule, in that prison. But if you can earn your way out of it, you prove you deserve to be out.

If I had $20,000 in my account, I’d try to get to $30,000 or $40,000. After proving I can earn my way out of the PDT prison, only then would I consider adding. Not before.

If you add before you get out — and you don’t earn your way out of prison — you’re more likely to lose more money. Why? Because you’ll be free with no safeguards and not enough expertise

I know it’s counterintuitive. I get it. Earn your way out of the PDT prison. Thank me later.

Let’s look at a trade from last Friday…

Trade Review

This trade started with another StocksToTrade Breaking News Chat alert.** But this time, instead of the Breaking News Analysts, the alert came from chat room user WOLFF…

UnderSea Recovery Corp (OTCPK: UNDR)

UnderSea is in the deep water search and recovery business.

On June 3, the company won a judgment for breach of contract. The stock spiked almost immediately. It got alerted in StocksToTrade Breaking News chat at 3:15 p.m. Eastern.

Here’s the UNDR chart from June 3–4 with the alert as well as my trade alerts. (Note: UNDR has been very thinly traded recently. It had zero trading volume on June 3 until 34 minutes after the default judgment was granted at 2:05 p.m. Eastern. The chart below starts at the time of the first recorded trades on June 3 at 2.39 p.m.)

UNDR penny stock chart
UNDR chart: June 3–4, STT Breaking News Chat, morning panic dip buy — courtesy of StocksToTrade.com | *Past performance does not indicate future returns.

As you can see, the stock closed strong on June 3. Then it gapped up and had a beautiful morning panic. (The long red candle and big red volume spike was the first minute of trading on June 4.)

I love to dip buy morning panics. And it’s even better when the news catalyst is good and it’s just overextended. I added because the court judgment is a big dollar win for the company ($10 million in damages, plus interest, plus court costs). And it looked like it was consolidating.

When it met my goals, I got out. It turned out to be a solid 32% win for $2,023 in profits.* I’ll never complain about a trade like that. Once again, thanks to StocksToTrade Breaking News Chat for looking into the rumor. And also for finding the link to the court judgment.

If the company issues a press release, it could spike again. I’ll be watching.

Millionaire Mentor Market Wrap

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That’s another update in the books. Last week was the start of summer trading but there was plenty of volatility and opportunity. Especially in meme stocks.

But the traders who did best had prepared meticulously. I don’t mean just spending time making a watchlist. (Get my no-cost watchlist sent to your inbox each week when you register here.) That’s not enough. Every trader mentioned in this post has been studying and trading for several years.

They’ve all put countless hours into their education as members of the Trading Challenge. They’ve honed their strategy and learned to adapt to the market. And, they’re all still trying to become better traders.

If you have dedication, persistence, and discipline…

Apply for the Trading Challenge Today

Please congratulate Roy, Brock, and all the other traders who took advantage of the crazy meme stock moves last week. Comment below — I love to hear from all my readers!

Disclaimer

*Jack’s, Kyle’s, Dan’s, Brock’s, and Tim’s trading results are not typical and do not reflect the experience of the majority of individuals in the Trading Challenge. From January 1, 2020, to December 31, 2020, typical users of the products and services offered by this website reported earning, on average, an estimated $49.91 in profit. This figure is taken from tracking user accounts on Profit.ly, a trading community platform. Timothy Sykes has a minority shareholder interest in the platform.

**Tim Sykes is a minority stakeholder in StocksToTrade.com. StocksToTrade Breaking News chat is an add-on subscription to the platform.

*While Tim Sykes has enjoyed remarkable success trading stocks over the years, earning an aggregate sum of over $7 million in trading profits between 1999 and 2021, his primary income derives from the sale of financial education products and subscription services offered by various businesses and websites in which he has an ownership stake.

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