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Trading Lessons

One Stock – Two Wins – Different Times of Day

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Written by Timothy Sykes
Updated 6/24/2022 5 min read

Everyone loves a great deal. But nothing’s better than getting 2 for 1.

It’s like finding a $100 bill in your pocket that you forgot was there.

One of the lessons I teach my students is how to look for multiple trades in the same stock.

In fact, many of my daily watchlists hold the same stocks for weeks.

Sysorex Inc (OTC: SYSX) illustrates exactly why.

I had my eye on this tiny OTC stock for weeks now, trading it here and there.

But last Thursday, I hit two HUGE WINS on the same day.

What’s cool about these trades is I took both of them on the same stock on the same day.

And I used similar setups.

I want to show you both so you can learn to identify these same patterns on your own and capture even more opportunities.

Sysorex Inc (OTC: SYSX)

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After the market closed on Wednesday, news hit that Sysorex filed an 8-K update form with the SEC.

In the form, management stated they agreed to sell 75% of the company’s Ethereum mining assets and certain associated property to Ostendo for $68,400,000 of preferred stock.

As I’ve talked about in the past, not all news is created equal.

This is actually very positive news for SYSX.

What was unusual was that the stock didn’t see any premarket volume.

That led me to conclude that many traders missed the news. This presented an opportunity for a morning panic dip buy if we got a selloff.

Sure enough, shares opened up higher and provided a quick pullback I took advantage of.

The one-minute chart doesn’t even do this trade justice because it happened very quickly.

Shares ran from around $0.022 up to $0.028 in the first half minute.

They then sold off quickly on an increase in volume back to $0.026 where I got a partial fill.

All of this happened in roughly 40 seconds.

I used that small pullback as my entry to ride the stock up for another couple of minutes.

While I typically like to see a larger selloff, the lack of premarket action indicated to me that buyers were waiting for the open, so any selloff would likely be fast.

Now, this was enough to give me a healthy profit, even with a partial fill.

But as the day progressed, shares held their gains and began to slide upward.

I used that momentum to create a trade on a slight pullback.

This type of setup is something that you can use on any chart on any timeframe.

It’s a simple matter of looking for a stock in an uptrend, buying a pullback into a support level, and then selling into the next leg higher.

The keys to making it work are:

  1. Entering the trade as close to risk (stop) as possible
  2. Letting price action dictate when you enter the trade
  3. Using that same price action to exit the trade

A lot of new traders can find support levels with relative ease.

Where many struggle is that second tier of analysis.

You see, when a stock hits a support level in an uptrend, the tendency is for that trend to resume. That’s doubly true for a stock with positive news and later in the day.

Additionally, the chart shows that all the volume that came in over the last several hours would push the stock higher.

That’s a clear indication that buyers are the ones in control.

Now, if the stock had simply stalled out after I bought it, I would’ve considered cutting the position quickly.

However, not only did it hold the line, but in the next few minutes, a small increase in volume pushed the stock’s price up briefly. That told me buyers were still coming into the stock.

Then, as the volume really picked up into the last hour of the trading day, I used that strength to exit the position for a nice profit.

The Bottom Line

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Any stock with enough momentum and positive news can create multiple trades, not just in one day, but over weeks.

In fact, this is a big part of the Supernova Pattern … the same pattern that helped me earn my first $1 million trading.

Learn more about this pattern and how it can help you find consistency in the market.

Click here to get started.

—Tim


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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

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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 (205) 851-0506 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”