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Trading Lessons

Your Key To The Next Big Stock Spike

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Written by Timothy Sykes
Updated 1/29/2024 5 min read
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There are profit opportunities right at our fingertips.

Everyone tries to overcomplicate this process. They say things like:

  • “You need a finance degree to profit in the market.”
  • “You need to be a math wiz.”
  • “You need insider information.”

It’s all BULL CRAP.

On Friday, Corbus Pharmaceuticals Holdings Inc. (NASDAQ: CRBP) launched 370% after the company announced bullish data from its first human trial for an upcoming cancer drug.

All of the details are below:

Source: StocksToTrade

I got the alert at 8:35 A.M. Eastern.

Look what happened after:

And here’s the reality:

  • I’m not a ‘finance bro’. I graduated with a degree in philosophy.
  • I’m not a math wiz.
  • This stock information is publicly available.

A few decades ago, Wall Street had the upper hand.

But thanks to the internet and technological advances, every few years this process becomes easier for new traders to grasp.

I’ve made over $7.5 million in trading profits over my career. I’ve also helped over 30 students reach the $1 million milestone. This can be your reality.

Watch my newest video for the truth about this niche.

But I have to warn you: It’s not all sunshine and rainbows …

Anything that’s worth having never came easy. I can show you the process for profitable trading. It’s up to you to put in the work.

Let’s start with this week’s biggest trade opportunities.

The Best Setups

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We’re only interested in certain stocks.

Now, you may have heard me mention these factors recently: That’s because patterns can repeat in the stock market.

The same kinds of stocks are spiking over and over again. Pay attention!

  • Biotech stocks.
    • This sector was red hot in 2023. And thus far, 2024 is right on track. $CRBP is a biotech stock.
  • A share price below $5.
    • Smaller share prices allow for larger percent gains. For small-account traders, big percent gains are important.
  • Volume above 1 million shares.
    • We need enough liquidity to get in and out. At least 1 million shares traded is a good benchmark.
  • A float below 10 million shares.
    • A low float means the share supply is low. A low supply helps prices spike higher when demand increases.
  • With hot news.
    • Something that adds value. The news needs to make the price spike.
  • Spiking 20% on the day.
    • If the stock spikes 20%, it can spike higher.
  • With a history of spiking.
    • Past spikers can spike again.

Now, I have to mention, this is an inexact science.

For example: $CRBP was trading at $8 before the 370% spike on Friday. That’s a little above my $5 constraint.

This is an inexact science. There’s wiggle room.

I’m looking for stocks that closely match this framework. All week long. And you should as well.

But I understand if you feel overwhelmed. There are a lot of factors on that checklist.

As I said earlier, thanks to technology, there’s an easier way to find these runners.

News Alerts

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Above all things, a stock spike needs a catalyst.

Just like a rocket needs fuel.

All of the other factors are important: Price, volume, float, etc. But ultimately the catalyst is what makes the stock spike.

That’s what I focus on when I’m looking for the next big runner.

Remember the alert that I got for $CRBP: That’s exactly what I’m talking about.

Use this technology to improve your trading!

And get ready for this week’s runners. The market is ON FIRE!

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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

* 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”