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Trading Lessons

How One Clean Trade Beat the Market

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Written by Timothy Sykes
Updated 1/31/2026 4 min read

On Thursday last week, January 29, just as the market was closing, I alerted a trade setup for a small-cap biotech stock that had halted upward …

Here’s part of the alert I sent out:

3:55 P.M. ET: Spiker to watch afterhours lets see how far it can go.

The stock was already on a multi-day run that made new 52-week highs. And I figured the price could explode upwards into after hours due to the increasingly vertical price action intraday.

If only I could find a good entry before it took off …

4:01 P.M. ET: Potential dip buy for followup squeeze, it could be fast.

The price dipped the first three minutes of after hours, eventually touching $5.40 per share.

That was plenty of time to build a position, and it was above support from intraday price action. The chart matched my pattern perfectly!

Over the next 14 minutes, the price surged 156%* higher.

I caught 44% of the move.

That’s more than 2.5x the gain of the S&P 500 ETF Trust (NYSE: SPY) in 2025. And I did it in a matter of minutes …

When we target the best price action in the market, we don’t have to wait for measly investments to mature.

How To Trade a Huge Stock Spike

As I mentioned, this stock was already on a multi-day run that pushed to new multi-day highs.

Adlai Nortye Ltd. (NASDAQ: ANL) didn’t announce any news. And it’s a sketchy small-cap biotech stock that previously sank lower and lower, month after month.

The recent bullish price action is most likely short sellers blowing up as they try to guess the top.

And during after hours on January 29, this short-squeeze pressure cooker exploded higher.

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

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

Look what happened next:

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

Read More: How To Target The Next Short Squeeze.

I bought at $5.85 per share and sold at $8.43.

And I left a lot on the table … The price ran all the way to $13.87.

This was a classic dip buy pattern that turned into a massive breakout. I’ve seen countless examples already in 2026. And anyone who paid attention to the chat had an opportunity to make this trade.

See my post below:

This won’t be the last stock to follow my patterns.

I’ve been doing this for more than two decades, with $7.9 million in profits and over 50 millionaire students who use the exact same process.

The Next Trade

Show up for after-hours trading in the market.

Premarket hours are also extremely volatile right now, but it’s early in the morning, nobody likes to wake up early. Plus, the differing times that brokers open can mess with the momentum.

If you need to sleep through premarket, fine. But make sure to show up before the closing bell at 4 P.M. ET.

It’s a key psychological time frame in the market, and lately we’ve seen a lot of after hours spikes that dwarf the regular-hour moves.

  • Stop logging off early.
  • Start following the strongest trade setups every day.
  • Work toward a worry-free financial future.

My students and I take it one trade at a time. And we recycle the same patterns over and over again on the next hottest stock.

Get in the chat before the next trade hits!

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”