timothy sykes logo

Trading Lessons

New Month, New Glory?

Timothy SykesAvatar
Written by Timothy Sykes
Updated 8/1/2023 5 min read

There’s an old expression on Wall Street that goes sell in May and go away…

Well, if you followed that advice, you would have missed out on some of the best trading opportunities of this year.

July was my best month in a while…

And there’s nothing that says we will slow down in August.

Why not make this your best month?

The way I see it, there’s two ways to make that happen.

 

#1 Focus On Gains

high frequency trading
© Millionaire Media, LLC

Now, you might be reading that headline and think Tim’s gone mad. Doesn’t he always stress risk management and trading like a coward?

I do..

And that headline has nothing to do with making profits.

It’s all about gaining momentum.

If you’re a newbie trader I’m not expecting you to make profit gains.

BUT…

I am expecting you to work hard daily and gain knowledge.

There’s no reason why you can’t learn something new or improve your trading each day.

Stacking knowledge gains will eventually translate into something good.

In fact, it’s what helped Jack Kellogg on his rise to becoming an 8-figure trader.

Jack wasn’t making money early in his journey.

But he didn’t let that discourage him.

Why?

Because he saw other Challenge Students around him make money.

Now, you might be thinking how that can be motivating…well, for Jack, he just wanted to see the strategies working. He knew that if he could button up his mistakes then he would have a shot at making it.

And boy was that ever true.

The cool thing about Jack is he’s helping other Challenge Students by offering a weekly webinar and watchlist.

I love it when my students can pay it forward.

There’s tons of great zero-cost content you can find on my blog and YouTube Channel. 

jack kellogg feature on business insider/bi

Source: Business Insider

So happy to hear that Jack Kellogg will be teaching fellow Challenge Students and sharing his watchlist.

But he’s not my only millionaire student teaching.

It’s not uncommon for Challenge Students  to hop on a training class and learn from Matt Monaco, Mark Croock, Bryce Tuohey, and Tim Lento.

And let’s not forget, the countless archived videos of Tim Grittani students have access to.

 

#2 Identify What’s Working Now

© Millionaire Media, LLC

The trend is your friend…and it will always be that way.

And right now we’re seeing A TON of short squeezes.

In my opinion, these are happening because short sellers are getting over aggressive.

Take for example the ticker symbol TUP…which has gone from $1.17 to $5.91 in the last five trading days.

If you have a small trading account or are inexperienced (been trading for less than 10 years) and are considering short selling…I recommend you don’t.

It’s just too dangerous and risky.

Instead, look for multi-day runners…stocks with strong uptrending charts.

These have been working a lot better than my favorite strategy, the morning dip buy panic, which haven’t been yielding like they were a few months ago.

That’s probably because stocks as a whole are overextended.

Nonetheless, it pays to identify what’s working in the market.

Even if you don’t trade the symbol you should be taking notes and trying to figure out what’s causing these moves.

Why?

Because it’s highly likely that the patterns will repeat again in the future.

Last Word

I’m here to guide you along your trading journey. And to help you, I have two immediate ways to get you going.

  • Unlock Expert Ideas. Gain immediate access to exclusive trading insights from my experienced team and me. These powerful ideas are yours to explore, and they come to you at zero-cost. Click here to gain access now!
  • Join Our Coaching Program. Think you’ve got what it takes to excel in trading? Book a call here to talk to one of our dedicated team members and see if you’re a match for our elite coaching program. You’re potentially just one conversation away from going to the next level.  Click here to schedule your call now!

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 (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”