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Trading Tips-Tim Sykes Penny Stock

The Next Trade Opportunity – Act Now!

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Written by Timothy Sykes
Updated 5/7/2024 6 min read

There’s a new trade to make every single day in our small-account niche.

Example:

Yesterday we watched Strong Global Entertainment Inc. (AMEX: SGE) spike 180% intraday after the company announced acquisition news on Friday afternoon.

Take a look at the insane run below:

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

And that was just Monday …

Today there will be a new opportunity to profit.

Don’t lose your head, I’m here to help. It’s too easy to lose money on these stocks if you don’t know what you’re doing. And it would be a shame to take a loss on a stock spiking +100% intraday …

Now, the biggest issue that new traders have is overcoming their greed.

Yes, there are HUGE opportunities to profit in the market. But we can only take as much as the market is willing to give us. You can’t impose your will on the stock market.

This is the bare bones of my trade process:

  • Identify a volatile runner with news that can follow support and resistance.
  • Plan a solid entry around support with a good risk/reward ratio.
  • Sell shares into strength.

Yes, it’s easier said than done. But there IS a process for profits in this niche.

One of my top millionaire students, Jack Kellogg is a shining example of what’s possible using this trade process.

Business Insider just published a story on his success:

Source: Business Insider

$10.5 million in 4 years … But as of this week, Jack has a recorded $12.6 million in trading profits since he started in 2017.

Here’s how Jack and I use this trading process to profit in the stock market:

Top Trade Setups This Week

© Millionaire Media, LLC

You picked a good week to pay attention. The stock market is bouncing right now due to a cooling labor market.

We’re hoping the weak labor data indicates lower inflation. That’s what makes it a bullish catalyst.

The data was announced last Friday, and on the S&P 500 ETF Trust (NYSE: SPY) chart below you can see the immediate market surge as a result.

Every candle represents one trading day:

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

The market is moving toward all-time highs. And the bullish momentum is causing stocks (like SGE) in our low-priced niche to surge.

There are more profit opportunities when the market is hot.

Take a look at the Tweet I reposted below, my students are crushing it right now:

We still have to use caution! SGE spiked 180% on Monday, but there’s no telling how high it will go or when the price will pull back.

That’s why we rely on key areas of support and resistance. These levels help us determine possible price floors and ceilings that we can use to play volatility.

Watch my support and resistance video below for more details:

Take a look at the SGE chart below, I drew in support and resistance lines to show you a recent example.

Resistance can become support and vice versa …

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

But recognizing these levels and using them to trade are two very different things.

It’s important for new traders to see LIVE examples so that they can understand the thought process behind a real trade.

That’s why I hold trading live streams:

Live Trading

tim sykes in sedona arizona with laptop of stock chart
© Millionaire Media, LLC

Most of these examples are reserved for my Challenge students.

But every now and then I post a live stream on YouTube to help newer students understand the process for success in this niche. And it’s especially important right now … we’re watching a behemoth of a trade match our framework perfectly.

Jack Kellogg hosted a live stream recently with examples. I uploaded it to YouTube.

Watch the video below and take notes. This is a multi-million dollar trader at work:

There’s a HUGE trade setting up right now. We’re watching for a spike on Friday.

Friday’s are notoriously bullish because …

  • Short sellers are closing positions to safeguard against a Monday gap up over the weekend.
  • Long-biased traders are trying to snag some of the gap up action.

And this week we have eyes on a legendary runner that’s ready to push higher.

There’s a FREE event for traders this Thursday at 8 P.M. Eastern. We’re going live to brief everyone on the exact strategy and setup.

>> This is your ticket to attend <<

Don’t miss the next profit opportunity!

Cheers.

 

*Stock trading is inherently risky.


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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”