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This Trade Is Obvious On The Chart

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Written by Timothy Sykes Reviewed by Jack Kellogg Fact-checked by Ellis Hobbs
Updated 10/21/2025 6 min read
This Trade Is Obvious On The Chart Thumbnail

Every day we’re bombarded with market news.

  • It’s earnings season for Wall Street.
  • Trump’s got something brewing with China.
  • Amazon’s AWS broke the internet.

Those are just the most recent and biggest stories from this week.

And every week there’s new data or a new catalyst from a different angle of the market that moves prices.

As small-account traders, how can we keep up with all of these catalysts, work a day job, and still find time to trade?

It seems impossible. Especially since we’re up against Wall Street fat cats who tend to run the show.

But there is a solution …

My millionaire students and I are proof. We focus on a specific strategy every day that drowns out the noise from the larger market.

This strategy isn’t completely immune from national news, but it is removed enough for us to find a meaningful edge.

We can use that edge for gains.

For example, Minerva Neurosciences Inc. (NASDAQ: NERV) spiked 360%* yesterday, October 21, after the company announced up to $200 million in financing to advance its treatment of Schizophrenia.

And the price action followed my strategy perfectly.

On the NERV chart below, every candle represents one trading minute:

NERV chart intraday, 1-minute candles Source: StocksToTrade
NERV chart intraday, 1-minute candles Source: StocksToTrade

This price action is not random.

And NERV is not the last stock to spike like this …

Don’t miss the next move from my watchlist of stock spikes!

My Watchlist Right Now

frequently asked questions about penny stocks to watch
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My millionaire students and I look for the strongest setups from small-cap stocks every day.

Here’s why:

  • The share price is cheaper.
  • The percent gain is larger.
  • And Wall Street doesn’t pay attention to small-cap stocks as much.

We’re trading in a sector that’s tailor fit for small accounts.

And since we trade these stocks on a short time frame, we’re less exposed to intraday volatility or price swings from larger-market catalysts.

If there’s a market crash, Wall Street is exposed to that volatility. But my students and I sit with our accounts in cash until we see the next setup.

Speaking of which …

Stock #1: Minerva Neurosciences Inc. (NASDAQ: NERV)

I’m still watching this stock after Tuesday’s 360%* spike.

I know that a 360%* spike sounds like a lot, but we’ve seen multiple stocks already this year that spike +1,000%*.

And NERV has a low float, less than 10 million shares, to help push the price higher as demand for shares increases.

We already watched this stock give us a perfect breakout setup after the market opened for regular hours on Tuesday.

The new breakout level is at $12 per share.

And if the price falls lower, there’s still a pattern that we can use to trade the volatility.

More Breaking News

That’s the beauty of my trade process, there are opportunities to make gains on the front end and the back end of these moves.

Stock #2: VSee Health Inc. (NASDAQ: VSEE)

This stock spiked 100%* on Tuesday, October 21 after the company announced a new contract with Teleradiology that’s supposed to create an extra $10 million in revenue over the next two years.

The stock started to run during premarket hours, then it broke past those highs during regular hours to almost touch $1 per share.

After the move, the stock sank lower and bounced off of the previous breakout level.

On the chart below, every candle represents one trading minute:

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

This price action is not random.

Stocks like to trade between key areas of support and resistance that traders can use to build smart positions.

When these support and resistance levels line up with our patterns, that’s when we make a trade.

Stock #3: Beyond Meat Inc. (NASDAQ: BYND)

I traded this stock last weekend when it followed my weekend pattern on Friday afternoon.

And I sold the shares on the following Monday, October 20 for a 66% profit.

Here’s a breakdown of that trade.

I sold my position at $1.04 per share.

On Tuesday, the price surged past $2.90 … That’s another 170% spike from my sell.

Look at the chart below from my initial buy on Friday to the move on Tuesday:

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

From Friday to Tuesday, this is now a 460%* spike. And I’m still watching it.

Like I said, these stocks can go full Supernova and run +1,000%*. All we have to do is track the price action with my patterns.

It’s killing me to look back on these Tuesday runners …

I wasn’t able to trade on Tuesday morning because I was en route to present at the virtual conference happening THIS WEEK.

Look at my post below:

For two days this week, I’m going LIVE with several of my millionaire students to show new traders how we continue to profit in the market.

If you missed this live event … There will be another.

Until you can join us live, shorten your learning curve by studying the entire strategy I use to trade.

Cheers

 

*Past performance does not indicate future results

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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.
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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 (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”