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Patterns To Watch

My Favorite Pattern to Trade

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Written by Timothy Sykes
Updated 3/3/2021 6 min read

I want to talk about my favorite penny stock pattern — the perfect morning panic. 

This special pattern is my favorite. In my opinion, it’s the best way for new traders to grow their small accounts. I know…

Everyone says penny stocks are ideal for small accounts, but…

This very specific pattern is responsible for a third if not half of my entire $5.5 million in trading profits.*

(*Please note: my results are not typical. I’ve spent years developing exceptional skills and knowledge. Always remember trading is risky. Never risk more than you can afford.)

If you’re prepared, you can potentially make 10%, 20%, 30%, 40%, or even 50%+ in less than an hour…

It’s that powerful. Sadly, not enough people understand this pattern or how to capitalize on it. Far too many people aren’t prepared…

I wish more people would focus on this one specific pattern rather than trying to chase morning spikes, or the latest promotion, or alerts from other traders.

The best part?

This unique pattern allows you to prepare ahead of time. Sometimes days in advance. For example, I called the best example of 2020 nearly 12 hours ahead of time. Anyway…

What’s this special pattern? It’s something I call…

A Morning Panic Dip Buy

If someone was holding a gun to my head and my life depended on a single pattern…

It would be a perfect morning panic dip buy. 

Honestly, this shouldn’t come as a surprise to anyone who follows me. I’ve been talking about morning dip buys for years…

The pattern hasn’t changed … AT ALL.

It’s the same pattern I discussed almost a year ago, and…

I’ve made countless free YouTube videos about this exact pattern. Here’s just one:

And yet … people refuse to study them. They think the videos are outdated and no longer relevant. But…

History repeats itself. I’ve been playing this pattern for nearly 20 years. Not every panic is the same, but the overall pattern hasn’t changed.

Here’s the latest example…

Yesterday morning (May 21, 2020), Transportation and Logistics Systems, Inc. (OTCPK: TLSS) had a perfect morning panic. And it became clear which Challenge students studied my 800+ dip buy video lessons and those who didn’t even touch them.

If you studied … you know who you are. Congratulations! You were prepared. If you weren’t prepared, let’s take a look at…

Transportation and Logistics Systems, Inc. (OTC: TLSS)

On May 21, I made roughly $2K on the TLSS perfect morning panic.*

It was a slower day for me in this crazy market. But my biggest play came on a perfect play. That’s key — waiting for those ideal setups and attacking. Then…

Wait for the next A+ play.

With my TLSS trade, I’m now up to $80,000 in trading profits this month — in only three weeks.*

This is my best month trading in several years. Last month, I made $42,071, and two months ago I made $39,060.*

In the last three months, there have been incredible plays nearly every day. It’s more important now than ever to be prepared. Enter each day with a trading plan and follow your trading rules. 

(*Please note: my results are not typical. I’ve spent years developing exceptional skills and knowledge. Always remember trading is risky. Never risk more than you can afford.)

But I want to specifically talk about TLSS.

TLSS perfect morning panic dip buy one day stock chart
TLSS chart: 1-day, 1-minute candle, perfect morning panic — courtesy of StocksToTrade.com

In 10 minutes, TLSS dropped from 8 cents to 5 cents. That’s a morning panic!

You need to focus on the bounce…

In under an hour, it bounced 50% from a low of $0.05 to $0.075…

The bottom of the drop was at 9:40 a.m. Eastern, and it topped out around 10:40 a.m. Eastern. Literally one hour. 

Can you afford to watch the market for one hour a day? I think so…

A ton of my top students nailed this move. Like therealmcdougal who tweeted about his trade. He nailed the perfect morning panic on TLSS because he was prepared.

Everyone needs to study these lessons. It’s only a matter of time before another morning panic opportunity arrives.

Why Do Morning Panics Happen?

Easy answer: stop losses!

Market markets take advantage of uneducated trader’s stop losses. Here’s another TLSS chart:

TLSS how stop losses create the perfect morning panic pattern 10 day stock chart
TLSS chart: 10-day, 1-minute candle — courtesy of StocksToTrade.com

The reason TLSS panicked from 8 cents to 5 cents in 10 minutes is because traders put in stop losses. Why? To protect themselves.

But they cause the morning panic.

TLSS was up from $0.016 to nearly $0.08 in four days. Traders wanted to make sure they locked in some of those gains, so they put stops at key levels…

I’m surprised TLSS didn’t break $0.05, which is a key psychological level for traders and a likely level for more stop losses.

Instead, there was a huge wall of buyers just above $0.05 at $0.0501 which is where I entered. I saw the huge bidders on my Level 2.

What do you think about morning panics? I want to hear from you! Comment below!

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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”