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Trading Recap

My Profit Strategy RIGHT NOW — #1 Stock Runner

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Written by Timothy Sykes
Updated 1/16/2024 5 min read

A lot of people think about these opportunities the wrong way.

There is a process for profits in the market. But most people want to get rich and quit their jobs to trade all the time.

That’s not realistic. And frankly, it sounds unhealthy.

Trading is a perfect side hustle.

Let me explain: I don’t look at my screen all day every day.

Here’s why …

  • There aren’t profit opportunities all day every day.
    • And I only trade the best setups.
  • Life is about more than money.
  • Too much screen time is unhealthy.
  • Trading can be stressful.

If you quit your job and spend all your time trading, I promise you’ll be unhappy.

And if you put that much importance on your profits: To substitute your regular job, you’ll likely make even more rookie mistakes.

Don’t quit your day job. Instead, trade like me.

I only made one trade in the morning yesterday. It took me a few minutes, and I pulled 8%. My trade notes are below.

Source: Profit.ly

I’m watching for the same patterns every day.

I’ll plan a trade if I see a stock I like.

If not … I’ll go live my life.

Keep reading for the specifics of this process.

Watch The Right Spikers

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There are thousands of stocks moving every day.

But only a handful will give us true profit opportunities.

That’s a blessing. Imagine watching 100 different trade setups to try and pull profits from the market. My head hurts just thinking about it.

Every day there are only a handful of stocks that I’m immediately interested in. Those are the stocks that could show me profit opportunities within the trading day.

It’s MUCH more manageable.

Here are the factors I scan for in StocksToTrade:

  • Credible news or catalyst pushing prices higher.
  • +20% spiker on the day.
  • A float below 10 million shares.
  • More than 1 million shares traded on the day.
  • History of spiking.
  • Share price below $5.

And we’re using DatChat Inc. (NASDAQ: DATS) as an example …

It matches our scan perfectly.

THAT’S your homework today. Go through each of those factors and find how they correlate with $DATS.

I’ll give you a hint with the catalyst. I even alerted it this morning! There’s a headline below.

Source: Finance.Yahoo.com

Understand: once I find the stock, I still have to trade it.

Profit Setup

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I play the same patterns over and over again.

The patterns manifest within a broader 7-Step Framework that volatile stocks tend to follow.

But … the pattern that I use to trade depends on where the stock is within the framework. I’m watching for a specific chart setup.

$DATS spiked 40% before I planned my entry. The price pulled back drastically and based above $2.50, a key level.

That’s when I bought 2,500 shares. And I rode the bounce for an 8% profit. The specifics are in my trade notes below.

Source: Profit.ly

The price bumped against the intraday highs but I felt like there was a top, so I sold for a safe profit.

As you can tell, I sold too early … The stock spiked 90% intraday.

Below is an image of my trade overlaid on the chart.

DATS chart 1-day, 1-minute candles Source: StocksToTrade

You don’t have to be perfect to profit. And clearly, I’m nowhere near perfect.

I have enough experience to capitalize on a good trade. And that’s all it takes.

This is an inexact science.

You NEED the experience to recognize these plays. And I’m not talking about studying the charts in these blog posts. Hindsight is 20/20.

You need REAL experience.

That’s why my millionaire students and I hold trading live streams.

New students watch professional traders as they track the hottest stocks LIVE. They get to ask questions and peek inside the thought process of a millionaire trader.

There’s no pressure to trade. But I’m warning you, the next stock that I profit from won’t look exactly like $DATS.

Get a few live streams under your belt.

That’s when all of this starts to make sense.


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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”