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Watchlists-Penny Stock Investment Strategy

Millionaire Trader Reveals His 3 Top Watchlist Stocks

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Written by Timothy Sykes
Updated 12/20/2023 7 min read

Traders are creatures of habit. 

That’s why, each morning before the market opens, I meticulously compile a watchlist of potential trades for the day.

Included in my watchlist yesterday was the ticker symbol POL, a stock that squeezed from its opening price of $2.24 to a high of $10.85.

It’s not an accident I find these plays early…and it all starts with the watchlist.

Think of it like using a GPS while navigating through a new city.

Many traders find themselves blindsided by sudden market shifts, often reacting too late or making hasty decisions that can lead to significant losses.

With over $7.5 million in trading profits, I’ve learned the undeniable value of being prepared. 

Today, I’m not just going to show you my watchlist… I’ll reveal how its creation each morning is pivotal to my success.

This method isn’t just a routine…it’s a transformative strategy that has revolutionized my trading journey.

Let me show you how it can reshape yours too

The Three Types Of Stocks That Are Part Of My Watchlist

Multi-Day Spikers

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In this section of the watchlist I’m including stocks that have recently shown significant multi-day spikes. Recent examples include the ticker symbols CCCC, SHOT, and ANY.

I like to buy these stocks on panic dips, because they have shown the ability to bounce back.

The ticker symbol ANY is a good example of a multi-day spiker stock that fits my panic dip buy setup.

I also like following the long term trend…I’ve always found multi-day spikers have more predictable patterns compared to one-day runners, which are known for their crazy volatility.

Pre-Market Spikers

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This includes stocks that are experiencing an unusual amount of volume and volatility. They are usually some fresh catalyst that’s creating the excitement.

If you use the StocksToTrade Breaking News Service then you know why the ticker symbol POL was on my radar…

The stock surged on a weird filing

All it said was that a concerned shareholder of Polished.com urges investor collaboration.

Pretty harmless, right?

Well it should be, but stubborn short sellers are turning these nothing burgers into full blown squeezes.

Typically I’m looking for low float stocks that have catalysts and are already experiencing pre-market strength. Again, I will look to buy these stocks on weakness…preferably a panic dip.

I received several messages from students who crushed it….

One of them wrote to me and told me they got in at $2.57 and out at $7.42.

Another messaged me and said they played it for a quick scalp, taking it from $4.75 to $5.50.

And to think, StocksToTrade Breaking News alerted this stock at $2.15.

Recent Spikers With Breakout Potential

The third tier of stocks I’m watching are stocks that have recently spiked and are on the radar for potential breakouts, ideally with substantial volume and a news catalyst.

On Wednesday I had CGEN, PBLA, IFBD, and ICCT on my watchlist.

In addition, they are potential candidates for dip buying in the event of intraday panics.

However, I’m only interested in these stocks if they meet my conditions. I will not just buy choppy or gradually uptrending or downtrending action…

I need to see convincing price action…and volatility to want to get involved in these types of plays.

Why The Watchlist Helps

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Besides the preparation aspect…it can also keep you disciplined. If you have a problem with overtrading, make a rule that states you only trade stocks on your watchlist.

Besides structure, the watchlist will also help you with your decision making. If you’ve already done your homework and feel prepared, you’re less likely to make bad decisions or get that dear in headlights moment.

Transform Your Trading with Proven Strategies! 🚀

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The stock market is a maze of opportunities and risks, and every day brings new surprises.

Just like POL’s unexpected surge, the market constantly throws curveballs.

Are you equipped to catch these opportunities? Or are you finding yourself lost in the chaos?

🔥 Join our upcoming live training sessions!

🔥 Unveil the secrets behind crafting a powerful watchlist that spots winners like POL, ANY, and more.

🔥 Dive into the tactics that millionaire traders use.

🔥 Learn how to identify Multi-Day Spikers, Premarket Movers, and Potential Breakouts before they make their moves.

🔥 Gain insights into avoiding common trading pitfalls and maintaining discipline in the heat of the market.

Don’t be a passive observer as others seize the moment. It’s time to arm yourself with strategies that work, tailor-made for today’s dynamic market.

Are you ready to revolutionize your trading approach with a watchlist that works as hard as you do?

Secure your spot now and become the trader who’s always one step ahead!

👉 CLICK HERE TO JOIN THE LIVE TRAINING AND MASTER YOUR TRADES! 👈

 


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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”