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Patterns To Watch

The #1 Pattern I’m Using Right Now

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Written by Timothy Sykes
Updated 1/25/2024 7 min read

Small-account traders are in a PERFECT position to profit right now.

Pay attention to the biggest spikers in the market.

There’s a new trade setup every day. And it’s all thanks to the incredible 2024 bull market.

Everyone was worried about a recession. They said inflation would run amuck. That the FED would choke the economy with interest rates.

And look what happened …

The market is surging to new highs. The S&P 500 ETF Trust (NYSE: SPY) already spiked 4% in 2024. Not to mention the HUGE surge to end 2023.

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

If I’ve said it once, I’ve said it a thousand times:

“When the larger market is hot, the plays in our niche are stronger.”

And I’ll keep saying it. Because somewhere out there’s a trader who just started. This is information you need to know.

Now is the time to lay your foot on the gas!

All of 2022 the market slid lower. Profits were more difficult to come by. In 2023, AI gave birth to a tech revival. But the market was still plagued with inflation fears.

Now …

  • Inflation is close to the FED’s goal.
  • People expect lower interest rates in 2024.
  • The tech sector is surging thanks to AI.

And every single day there’s a new play to make.

Most recently on January 25.

We saw the same stock offer the same profit opportunity back to back.

And then a different stock followed the same pattern to break out around noon.

Patterns CAN repeat in the stock market.

And right now, there’s one pattern that’s really popular.

The #1 Morning Pattern

sun coming in on Sykes - arms out
© Millionaire Media, LLC

I’m always scanning for the same kind of stock.

  • A price below $5.
  • A float below 10 million shares.
  • A volume above 1 million shares.
  • Recent news.
  • A spike above 20%.
  • A history of spiking.

That’s exactly what led me to Process Pharmaceuticals Inc. (NASDAQ: PCSA).

During premarket hours on January 25, the company announced the successful completion of a cancer study safety evaluation. $PCSA works to create chemotherapy drugs capable of helping cancer patients.

The price spiked 180% in one morning. And my scan alerted it before the market even opened.

I wasn’t the only one watching … All my students got the watchlist alert.

I laid out the entire pattern with my possible entry and exit.

Not only that … I was LIVE STREAMING while the stock pushed higher. My students have so many opportunities to profit it’s insane!

And a lot of them banked!

This is a screenshot of the Challenge chatroom. It’s where I alert my setups and traders get to collaborate with the other millionaire students.

Source: Profit.ly

But I’m getting ahead of myself. Let’s back up.

I saw a specific pattern that made me want to trade $PCSA. It’s the same pattern I shared with all of my students.

Key Consolidation

© Millionaire Media, LLC

I’m not gambling on these plays.

I’m waiting for a specific time to buy.

$PCSA spiked 180%, but there was still a chance to lose money if we played it incorrectly.

Here’s the basics of the trading plan:

  • We find a stock that’s spiking.
  • We wait for the price to pull back and consolidate above a key level.
  • Then hopefully, the stock spikes past the intraday highs.

“What if the stock tanks?”

We cut the loss.

Small losses are part of trading. Our goal is to focus on the best possible setups and protect our overall account.

Take a look at the $PCSA chart that shows it spiking twice in a row.

PCSA chart 1-day, 1-minute candles Source: StocksToTrade

My full trade notes are below.

Source: Profit.ly

And it’s not the only stock following this pattern.

Rail Vision Ltd. (NASDAQ: RVSN)

© Millionaire Media, LLC

This is a multi-day runner that was already on my watchlist.

On January 22 the company announced it secured EU approval for railway standards.

Prices spiked 570% as a result.

And on January 25 it used the same consolidation pattern to breakout intraday.

There’s a chart below …

RVSN chart 1-day, 1-minute candles Source: StocksToTrade

I missed the initial breakout. But I still snagged a cool 6% before it put in the day’s highs.

Source: Profit.ly

There are SO MANY opportunities to profit right now.

Good thing you’re here.

Some traders won’t get the opportunity to bank off of these massive runners. All because they didn’t get to read this report.

You must understand the price action!

My students and I hold daily live streams to follow the market’s hottest setups. I was covering $PCSA and $RVSN as they surged higher. And anyone watching could have come along for the ride.

This momentum isn’t over yet!

Keep grinding while the opportunities are hot.

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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”