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Patterns To Watch

My Trading Patterns In Action

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Written by Timothy Sykes
Reviewed by Jack Kellogg Fact-checked by Ellis Hobbs
Updated 11/21/2024 5 min read

It’s Tim Sykes here.

My millionaire students and I … We don’t trade at random.

There’s a specific trading pattern that I followed to pull profits from Safe Pro Group Inc. (NASDAQ: SPAI) yesterday:

Source: Profit.ly

And Forte Biosciences Inc. (NASDAQ: FBRX) the day before:

Source: Profit.ly

There’s a science to this.

A science that we can exploit for gains.

The difference between my millionaire students and students who are just starting: My millionaire students can recognize the science in real time.

They can see the patterns forming with enough time to get in.

Now, the best way to learn this process is by seeing it happen live …

I have a LIVE trading webinar today, November 22 from 12 P.M. to 2 P.M. Eastern.

Jack Kellogg has a LIVE webinar today from 2:30 P.M. to 4 P.M. Eastern.

Challenge students: Log in to profit.ly, click on ‘Premium Content’, then click on ‘Important Links’.

Not a Challenge student?? Watch the next FREE trading webinar.

The second best way to learn this process … Study A LOT of past trades. That’s what we’re going to do in this blog.

Here are my trade patterns in action:

Taking A Good Loss

Even the best traders lose from time to time.

On Profit.ly it shows that I have a win rate of 76% with $7.8 million in profits.

One of my most successful students, Jack Kellogg, has a win rate of 56% with $13.3 million in profits.

You’re going to lose a trade eventually.

The key is to recognize when the trade is failing, and get out before it does too much damage.

Small losses are part of the process. Big losses are not.

Let’s take a look at an acceptable loss:

Source: Profit.ly

Here’s my position overlaid on the chart, every candle represents one trading minute:

SPAI chart intraday, 1-minute candles Source: StocksToTrade

I bought shares in anticipation of a breakout. When it didn’t surge, I sold for a small loss.

I was on the right track, the price pushed higher after I sold. But the chart didn’t follow my trade plan.

Understand that SPAI could have fallen lower after I sold, there’s no way of knowing. I’m just putting myself in a position to bank on the best plays.

If the stock fails, my #1 goal is always to protect my account.

Plus, I can get back in later …

Locking In Profits

SPAI was still one of the hottest stocks in the market.

I kept watching it even though I took a loss during premarket hours.

And sure enough, it showed me another opportunity to profit after the market opened for regular hours:

Source: Profit.ly

Here’s my position overlaid on the chart, every candle represents one trading minute:

SPAI chart intraday, 1-minute candles Source: StocksToTrade

I watched the price fall drastically from the premarket highs.

I knew $5 was a key level and when the price fell below it, there was an opportunity to bank off of overaggressive short sellers.

It looks like a small move on the chart. That’s because I’m just taking the meat of the move. That’s the beauty of these trade patterns …

More Breaking News

We can choose systematic profits over wild gambling.

How To Trade These Spikes

The patterns that we use are always the same.

In this blog, you saw me trying a breakout pattern and a panic dip-buy pattern.

Now …

I used to tell my students to focus on one pattern at a time. Too many patterns can become confusing.

But in 2024, my students can track each of my patterns on the market’s hottest stocks with little to no experience!

My AI trading bot is trained to follow these patterns on the hottest stocks.

>> Use AI To Build Smart Positions On The Next +100% Runner <<

Cheers.

 

*Past performance does not indicate future results


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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”