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Trading Tips-Tim Sykes Penny Stock

Smart Penny Stock Trades For Small Accounts

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Written by Timothy Sykes
Updated 1/10/2023 8 min read

Ever feel like a vampire is draining the stock market of its vital life force? The more go-to strategies for penny stock trades you know, the higher your chances of surviving when momentum is suddenly sucked dry.

The market’s had some spooky moments lately. Maybe it’s just the time of year. Maybe it’s just a response to recent run-ups. Or maybe it’s just a blip on the radar during this year’s crazy market volatility

No matter what’s going on in the market, there will always be opportunities for smart, educated traders. It’s all about being able to adapt to the current market conditions and what’s going on right now.

Wanna be prepared? Let’s talk about smart penny stock trades for small accounts … Memorize these setups. Understand them. Be ready when opportunity knocks!

Is the Market Getting Scary?

History repeats itself … Traditionally, September and October have been scary times in the stock market.

The notorious stock market crash of 1929 happened in October…

And the stock market crash of 1987? Also in October.

Oh, and the 2007–2008 financial crisis? It kicked off on October 9, 2007. That’s the day Congress rejected a bill to bail out banks…

After a truly historic run-up, the S&P 500 recently experienced what some called a ‘mini-crash.’ There’s been some recovery, but it’s got some people spooked.

Plus, the election is creating lots of uncertainty that could lead to more market volatility

Recent slowdowns and consolidation have traders wondering if the hottest trading year in decades is winding down…

What do I think? I don’t like to predict. And I’m definitely gonna stay careful … I’ll probably cut losses even quicker than usual.

But in the scheme of things, I’m not worried. As I’ve learned in my 20+ years of trading, there are always opportunities. It’s a matter of reacting to what the market gives you.

React, don’t anticipate!

Penny Stock Trades: You’ve Gotta Adapt

Patterns repeat … but penny stock trades don’t always play out the same exact way. That’s why you’ve gotta constantly keep learning and adapting.

Trying out dozens of different setups at the same time and seeing what works is NOT an effective trading strategy.

Instead, it’s better to focus on a few key setups and really understand how they work.

Figure Out Your Ideal Setups

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I’m a big believer in letting data dictate what works for you as a trader.

Keep a trading journal where you log your trades. Log details like your entry and exit points, your theory for getting into the trade, and how it worked out.

My top student, Tim Grittani, kept meticulous notes on his trades — that’s how he figured out what was really working for him. He focused on the setups that were making him the most money — and perfected them.

Now, he’s made over $12 million*

What’s Working Now?

Let’s look at some recent plays — these will give you an idea of why caution and quick reaction times are vital in the market right now.

How Do I Find Penny Stock Trades?

So many traders just want alerts. I don’t want anyone to follow my alerts … Instead, use them for your education. It’s how you can better learn the process. Ultimately, I want you to be self-sufficient and develop your own strategy.

I use StocksToTrade to filter down the thousands of stocks to a short watchlist of the strongest potential plays.

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This way, I don’t have to waste my time on stocks that don’t meet my criteria. Thanks to StocksToTrade’s add-ons like the Breaking News Chat feature, I can also get a heads-up on when there’s news that could move a particular stock.

(I’m an investor in StocksToTrade and I helped develop it.)

Basanite Inc. (OTCQB: BASA)

This was one of the best morning spikers on September 8, 2020. I actually missed this play. But you can ALWAYS learn something from trades — even if you didn’t take a position.

Props to my students who reported buying the breakout during the morning spike. There was a great opportunity to buy in the low $0.70s then sell in the high $0.70s, $0.80s, or even higher…

But as you can see by the chart, it happened fast — then faded into oblivion. In a market like this, you can’t stay in trades too long!

BASA stock chart
BASA chart: Early spike on September 8, 2020 — courtesy of StocksToTrade.com

Galaxy Next Generation Inc. (OTCQB: GAXY)

I dip bought this former runner with news, hoping to make 10%–20%. The bounce exceeded my expectations and I made $1,035.* But I didn’t stick around.

In retrospect, I could have made more … but I didn’t want to get greedy. At the time, the Dow was dropping like crazy. I don’t need that kind of stress in my life.

GAXY penny stock chart
GAXY chart: Early spike on September 8, 2020 — courtesy of StocksToTrade.com

Don’t miss more commentary on these penny stock trades and more — it’s all in this video:

Don’t Miss My 30-Day Bootcamp

If you want to become an informed trader who understands how to adapt, you’ve gotta check out my low-cost 30-Day Bootcamp.

It’s priced at less than $100 — traders need to take advantage of this incredible tool.

‘30-Day’ doesn’t mean you have to do it in a specific period of time. You can watch it on your own schedule — some people finish in a week, others take longer than 30 days.

I made this with one of my most promising students — Matthew Monaco. At the time we filmed it, he was just finishing college. Now, he’s up over $300K in profits.* I knew he had potential, but he’s exceeded my expectations!

Trade Like a Vampire Slayer…

When the market has these momentum-sucking moments, you’ve gotta approach the market like a sniper … All right, it’s October, so a vampire slayer.

You can’t overstay your welcome with penny stock trades in the current market. If things go your way, get out fast and take profits. And if things go bad, get out even faster. Cut your losses quickly! Otherwise, your account could get sucked dry.

Wanna be prepared when promising penny stock trades come along? Educate yourself. Understand the patterns. If you’re ready to get serious, consider applying for my Trading Challenge.

Have you adjusted your trading strategy during the recent market shifts? Leave a comment and tell me how you’ve adapted!


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Author card Timothy Sykes picture

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”