timothy sykes logo

Watchlists-Penny Stock Investment Strategy

My Watchlist Right Now — 2024 Red-Hot Market

Timothy SykesAvatar
Written by Timothy Sykes
Updated 1/23/2024 7 min read

Ladies and Gentlemen.

It’s imperative that you watch the market right now.

Traders are banking left and right thanks to the intense bullish momentum.

Markets are breaking to new all-time highs. Despite current social and economic issues in the world. Let’s break things down …

Here are the negative factors affecting the world right now, issues the media points to daily:

  • War between Ukraine and Russia
  • War between Hamas and Israel
  • Houthi attacks on supply ships in the Red Sea
  • China’s current economic freefall
  • The U.S. election
  • Persistent global inflation

Sorry to start things on a grim note. But we have to look at this realistically.

Now, while all of that’s going on, major indices like the S&P 500 ETF Trust (NYSE: SPY) continue to make new all-time highs.

Look at the chart below …

SPY chart multi-month, 1-day candles Source: StocksToTrade

Here’s my point: The stock market doesn’t operate in tandem with global events.

We saw a similar occurrence during the COVID-19 pandemic. Markets rallied to all-time highs despite the severe effects of global lockdowns.

As traders, it’s our job to recognize market strength and act on it.

Things won’t always be hot like this. For example: After the rally in 2020 and 2021, markets slid lower during 2022.

Take advantage of this momentum while it lasts!

 

We use the same trading patterns every single day. The only difference is that right now, the spikes are a lot bigger.

I have examples …

Today we’re going to explore my recent profits on Rumble Inc. (NASDAQ: RUM). The more you see these patterns in action, the faster things will start to click.

Keep reading …

Huge Watchlist

This is a lot of information …

There are a lot of stocks moving right now that could offer us profit opportunities.

I’m going to dump these tickers on you. Add them to your watchlist.

I’ll explain the process after.

  • $RVSN
  • $FAZE
  • $NVVE
  • $ENSC
  • $RUM
  • $OTLK
  • $PHUN
  • $ALRN
  • $ICCM
  • $LBPH
  • $BFRG
  • $MRAI
  • $ELEV
  • $DWAC
  • $SGMT

I know that it’s a lot of stocks.

But they’re rarely in play at the same time. We wait until the chart matches one of our trading patterns. Then we get in and get out.

Also, it’s A LOT easier to keep track of these plays in StocksToTrade.

  • We can view the watchlist in tandem with stock charts and flip between tickers seamlessly.
  • We can also set alerts for certain stocks. The system sends an alert when prices cross a certain level.

I don’t have to watch the stock market all day long. I just pay attention when there’s a trade to make.

Like this week on Rumble Inc. (NASDAQ: RUM). Let’s break it down.

Profitable Trades

First of all, there needs to be a reason for the volatile price movement.

Otherwise, there’s no reason to risk a trade. We only want the best plays.

Anything can happen in the market at any time. If I only focus on the best plays, I’ll have a higher likelihood of success.

When it comes to $RUM

Rumble is a media company that rivals YouTube. In the last few years, there’s been a slew of personalities and videos banned from YouTube. And the censorship is a huge point of contention for certain creators.

Rumble’s goal is to provide a free space for creators to post content.

Fast forward to the most recent news:

On January 22, 30 minutes before the market opened, $RUM announced a partnership with Barstool Sports. And Portnoy confirmed Barstool would air its video content on Rumble.

Barstool and Dave Portnoy have a HUGE following.

The main Instagram has 15.7 million followers.

Since the news went public, share prices of $RUM spiked 80%. I’ve traded it twice, both for a profit. However, I used two different patterns.

We’ll run through each so that you can see both trade opportunities.

Trade #1: Breakout Dip Buy

On January 22 the price pushed higher almost all day.

I didn’t get in until the end of the day.

I saw the bullish price action and the news to support the move. I watched as the price broke out over intraday highs, and I dip bought above support in hopes of another push higher.

I sold early in after hours for a 3% profit. Take a look at my trade notes below.

Source: Profit.ly

And now for the chart …

RUM chart 1-day, 2-minute candles Source: StocksToTrade

That’s a profit I made on the way up.

Let me show you what happens when the price crashes.

Trade #2: Panic Dip Buy

This is my favorite pattern to trade.

Stock spikes are unsustainable in the long run. The price needs to pull back eventually.

That’s where I lay waiting …

If the price pulls back drastically enough, there’s often a chance to buy shares for cheap and hold for a momentary bounce.

That’s what I did for my second trade on $RUM. This trade took place on January 23. Take a look below.

Source: Profit.ly

And the chart …

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

There’s a specific process that I use for profits in this niche. It’s how I pull cash from $RUM and other volatile spikers.

I can teach it to you.

I’ve already helped over 30 students cross the $1 million milestone.

But it takes discipline.

If you think you’ve got what it takes, keep reading.

The Next Big Trade

There are new trade opportunities every day.

It’s just a matter of whether you recognize them.

This is a difficult process in the beginning. New traders have very little experience identifying the best plays from the thousands of stocks moving every day.

Don’t worry, if I taught Bryce Tuohey how to trade, I can teach you.

This isn’t rocket science.

Above all things, you need to gain trading experience.

  • Watch the market move in real-time.
  • Follow the hottest stocks.
  • Plan potential trades.

In the beginning, a lot of traders lose money as they practice and learn. But you don’t need to lose money to gain experience.

Save your account until you understand the process!

My students and I follow the hottest stocks every day LIVE.

Live streams are perhaps the most valuable tool that my students use.

They get to watch the hottest stocks move in real time and listen to professional traders as we plan setups.

There’s no pressure to trade. I can’t stress that enough.

This is a marathon, not a sprint. Save your account.

Here’s the link to our next livestream.

Follow the process. Soak up this information like a sponge!

Keep grinding!


How much has this post helped you?


Leave a reply


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

Post image

Get my weekly watchlist, free

Sign up to jump start your trading education!

* 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”