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Trading Lessons

How To Trade My Friday Setup

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Written by Timothy Sykes Reviewed by Jack Kellogg Fact-checked by Ellis Hobbs
Updated 12/27/2024 4 min read
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It’s Tim Sykes here.

Welcome to another Friday in this red hot stock market!

And a Happy Holidays to all of you.

There’s a very specific trade that I’m looking for this afternoon …

Every weekend there’s an information inefficiency that leads to stocks spiking on Friday and into Monday.

Our goal is to buy shares on Friday, before the market closes. Then we sell into the Monday-morning spike.

Some of my students are realizing the potential of this pattern!

Take a look at the post below from last weekend’s runner:

Source

I missed this textbook trade. But I’m glad some of my students recognized the setup!

Take a look at my post on X from Monday:

We all have to be more aggressive on Fridays!

Watch my video below to see more examples of weekend runners:

Traders can work a day job and still show up in the afternoon to play this setup!

It’s the perfect strategy for side-hustle traders.

But understand …

  • There are times when we have to take profits early on Friday.
  • There are also times that I don’t see this pattern in the market.

There’s no such thing as a 100%-guaranteed trade. All we can do is put ourselves in the best position to profit off of this insane volatility.

Last weekend, SEALSQ Corp. (NASDAQ: LAES) followed this exact pattern and spiked 80%.

Get ready for another weekend opportunity …

How It Works

© Millionaire Media, LLC

Every Friday in the stock market, there are a few traders who go home early.

Maybe they’re taking a long weekend.

Maybe they’re just mentally checked out …

For whatever reason, there are traders who aren’t paying attention to the market. As a result, they miss the Friday stock spikes.

Now, there will be companies that announce news on Friday. And traders who pay attention have an opportunity to profit.

The traders who don’t pay attention, they find these plays during the weekend while the market is closed. Some of them buy shares, and the trade orders pile up on Monday. That leads to a Monday-morning stock spike.

For example, last week, Friday, December 6, LAES announced the integration of its post-quantum cryptographic chips on WISeSat satellites.

The announcement came during premarket, and the price spiked 40% on Friday.

But the real opportunity was over the weekend.

Look at the intraday price action below from Friday, December 20 to Monday, December 23. Every candle represents one trading minute:

LAES chart multi-day, 1-minute candles Source: StocksToTrade

This pattern repeats in the market.

This Coming Weekend Trade:

As I mentioned before, sometimes we sell our shares on Friday before the market closes.

It depends on how the chart looks before 4 P.M. Eastern.

Sometimes the spike will satisfy our trade plan without a Monday gap-up. We have to be ready for that.

Learn this profitable price action before 2:59 P.M. Eastern today!

Watch my video below:

If you don’t see this pattern today … Sit on your hands!

Profitable trading is about playing the right setups, and staying out of the bad setups.

Don’t give away cash. Wait for the hottest stocks to follow this pattern today.

Cheers.

*Past performance does not indicate future results

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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”