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Trading Lessons

Pay Attention to These Stocks

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Written by Timothy Sykes
Updated 7/25/2022 5 min read

Traders should NEVER gamble with questionable setups.

I teach my students to only enter trades they can lay out on paper.

Because I focus on locking in profits and cutting failed setups quickly, I’ve created a healthy win percentage of 77.13%.

All my trades are open to the public on profitly

Year-to-date, I’ve made $104,804.34 in total profits. However, $21,548.37 came in the last 3.5 weeks.

There’s one market area that’s on fire!

Let me show you how to locate these hot stocks and create profitable trade setups.

Hot Stocks

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Right now, high percentage gainers offer better opportunities than other stocks.

And this goes beyond the typical over-the-counter (OTC) stocks I trade.

I’m seeing massive runs in stocks with high short interest like Toughbuilt Industries Inc. (NASDAQ: TBLT), hot sector stocks like Vertical Aerospace Ltd (NYSE: EVTL), and more.

But, I don’t just go after any old premarket mover.

I want stocks with:

  • News catalysts
  • Heavy promoter pumps
  • Lots of volume

To locate these stocks, I rely on our Breaking News chat room on the StocksToTrade platform.

You’ve probably heard me talk about this before, but I can’t stress enough how valuable it is for traders.

Our analysts sift through reams of data to find the stories that matter on the stocks with big moves.

If I want to know why a stock is up 100%, I turn to them.

Plus, they also keep tabs on promoters and pumps, which is hugely important for my trading.

Now, sometimes I’ll spy news on a stock that has yet to move in premarket.

That’s exactly what happened with my E-Cite Motors (OTC: VAPR) trade.

Those are the opportunities that get me excited because I can smell the run before it happens.

Another way to suss out these plays in the premarket is with a screener.

The one I use in the StocksToTrade platform lets me filter for stocks with the highest percentage gains in the premarket as well as narrow them down by float and volume.

Trial the StocksToTrade Platform today.


Create Your Setup

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While I teach my students the fundamentals of trading, each has developed their own strategy.

There’s no one way to trade stocks with big gains.

However, there are some core principles that anyone needs to apply, top among them is risk management.

Right now, I’m looking for these big gainers to push hard so the pullbacks may be shallow if they occur at all.

One World Universe Inc. (OTC: OWUV) is a good example of a stock that ran hard when news hit on July 21.

Shares pressed into the close on heavy volume.

Since this was the first day run for the stock, I expected we’d see a pop on day two.

Sure enough, I was able to buy into a slight late-day pullback and sell into a rip at the open the following day.

I entered this swing position near the close on Thursday.

What if the stock dropped overnight?

That was a risk. However, I also watched how shares finished the day.

From the pullback, OWUV climbed into the close, setting a new high of the day.

Had shares not run farther or pulled back, I would likely have cut the trade.

With any trade I take, there are expectations about what I want to see from the price action.

If the stock doesn’t meet my expectations, I cut it loose.

That’s exactly what happened with NuvusGro Corp. (OTC: NUVG).

I expected shares to continue to climb from my entry. Instead, they popped and then quickly came back down.

I saw no point in holding on when the price action told me not to.

What’s Changed

In the first half of 2022, we didn’t see many multi-day runners.

Even the single-day spikers quickly faded.

Now, I’m witnessing a shift, at least temporarily.

More stocks are pushing for 2-3 days, especially when the news is good and you have a weekend to digest it.

That’s not to say that all stocks qualify for this bullishness.

You have to watch to see how they trade throughout the day, especially right after the news catalyst.

If the stock is failing to break new highs and remains rangebound, it’s unlikely to see another run the following day.

However, there are plenty of previous runners seeing a resurgence such as Redbox Entertainment Inc. (NASDAQ: RDBX) and more.

Keep a healthy watchlist of stocks with big runs and see which ones set up for day two or three movers.


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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”