Too many traders panic in the morning right at the open.
The weird thing is…
Morning panics create opportunity.
Over the past 25+ years, I’ve seen this price action thousands of times.
And it has become my single favorite pattern.
If you’re prepared, it can actually be one of the best low-risk to high-reward trades.
But if you get it wrong, it’s like trying to catch a falling knife.
Start here to discover this incredible pattern.
Then go through every post and video in my extensive library.
It will be time well spent.
Table of Contents
The Setup: Morning Panic Dip Buys
I’ve written about morning panic dip buys before, so I won’t go deep in this post.
That said, I’ll cover the basics now so you have a framework to study.
My Single Favorite Trading Pattern Over 25+ Years
Once you master the morning panic dip buy, you’ll never look at your alarm clock the same way again.
Morning Panic Dip Buy Basics
- Don’t come to the market unprepared. Never try to roll out of bed at 9:28 AM ET ask “Okay, where’s the panic?” You have to be up and ready. And preferably you’ve already identified potential morning panic stocks the night before (more on that).
- Look for stocks that run for several days. I look for recent runners that are overextended. The higher it goes, the more prepared you should be.
- Pay attention to volume. If the volume is going up with the stock, that means more and more traders are interested.
- What’s the float? Ideally, it’s a low-float stock. That creates even more volatility. When a stock’s float rotates multiple times in a day, it’s on everyone’s radar.
- Wait for the flush. Once a multi-day runner starts to slow down, a selloff can turn into a flush fast.
Timing Your Morning Panic Dip Buy Entry
Again, if you get it wrong, it’s like trying to catch a falling knife. You’ll end up with bloody hands.
So you have to wait for the turn. And there’s a psychology behind it.
Imagine the stock as it runs up…
Newbies and true believers buy the stock as it runs and then hold as long as they can (because they get greedy).
At the same time, bitter toxic lemon short sellers start salivating.
For them, this is the next stock they’re going to crush.
Eventually, the selloff begins.
Newbies panic because this amazing stock they’ve seen go for days is going red.
Others get stopped out because they’ve set automatic stop losses.
Then, the short sellers pile in and the panic is on.
At some point, the short sellers decide to cover (to take profits).
When enough short sellers start to cover, that’s the turn.
I like to watch it on level 2. You can literally see the bids pile up and go higher. And THAT is…
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The Time to Strike
If you want to go deep on morning panic dip buys (and you should) here are some great resources:
- When to Dip Buy vs. Not Dip Buy (This one is a CLASSIC.)
- How I Called the Best Morning Panic So Far This Year (Features one of the all-time great morning panic setups.)
- Do Your Mornings Start With THIS Pattern? (This one will help you learn to analyze price action.)
For me, morning panic dip buys are one of the best and most satisfying patterns to trade.
My good friend Ben Sturgill prefers a different type of trade…
Bizarre discovery made by a former U.S. Air Force pilot turns
the shortest and most lucrative 84-day trading season into
A 365-day cycle of “SUPERSIZED” income opportunities.
On My Radar
There’s still only one thing on my radar right now, and that’s freeing one of the most beautiful animals I’ve ever seen.
The good news is that she’s on her way to the Elephant Nature Park.
It’s a little bit of heaven for elephants that have been through what she’s had to endure.
Today I’m with the one and only Lek and her incredible @ElephantNatureP as this is the sanctuary that the elephant I’m rescuing for my birthday will soon live — no more riding, beating or starvation as this is Elephant heaven and there’s no animal cruelty/abuse allowed here! pic.twitter.com/8T7Qi1vIbQ
— Timothy Sykes (@timothysykes) April 8, 2026
No more riding, beating, or starvation. I can’t wait to share videos with you once she’s finally home.
Cheers,
Tim Sykes
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