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You’re In The BEST Position To Profit RIGHT NOW

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Written by Timothy Sykes
Updated 2/24/2024 5 min read

A lot of people don’t realize the true opportunity for small-account traders …

Everyone wants to trade like Jack Kellogg.

He started my Challenge just before the 2020 rally and is currently sitting at $12.1 million in trading profits.

Some of his trades right now are CRAZY!

But before I show you, remember that we’re trading in a red-hot 2024 market and Jack is trading with a huge account compared to the $7,500 he started with

Here’s a profit Jack pulled last week, starting stake of $144,690:

Source: Profit.ly

He logged the trade on February 22 but the actual pattern was a gap up overnight into February 21.

Here it is overlaid on the chart …

LUNR chart multi-day, 3-minute candles Source: StocksToTrade

Making $23,000 in one day sounds nice. But do you have $144,000 to use for that potential profit?

Probably not … 

Like I said, everyone wants to trade like Jack Kellogg. But it’s not that simple.

You can use the same patterns and the same strategies, but here’s the reality:

You’re in a better position to profit than Jack.

I know that sounds backwards.

Here’s why it makes sense … Get excited!

Liquidity

© Millionaire Media, LLC

This strategy is only scaleable to a certain point. I learned that early in my trading career.

These small-cap stocks can spike +1000% and follow common trade patterns. We can make A LOT of money trading them.

My career profits of $7.5 million are proof of that. As are my millionaire students like Jack Kellogg.

But when we start to make a lot of money, our position size can only grow so large.

Jack likely had enough money in his trading account to buy more shares of LUNR if he wanted to …

But 13,000 shares is already substantial for a stock that only has 9 million shares in the float.

When Jack was buying LUNR on Thursday, the stock was only trading between 50,000 and 100,000 shares every minute.

To get out of a trade, we need enough demand for the shares we’re trying to sell. If we buy too many shares of a small cap stock, the price could drop as we sell into comparatively thin volume.

Big stocks like NVIDIA Corporation (NASDAQ: NVDA) are trading 3 to 6x the share count of small cap stocks, anywhere from 300,000 to 600,000 shares per minute.

Small-account traders can get in and out of +1000% small-cap stocks because we’re buying fewer shares.

It can lead to substantial profits for us. But from Wall Street’s perspective it’s small potatoes.

For those interested in higher liquidity plays …

There ARE opportunities for small account traders among higher priced stocks.

It all depends on what works for YOU!

Profitable Niche

top penny stocks list Tim Sykes on a cliff in Italy with a laptop
© Millionaire Media, LLC

I’ve used the same process to trade for over 20 years.

And over the last 15 years, I’ve taught the same process to my students.

I use these patterns to trade volatile penny stocks because that’s what works for me …

But my students have used these patterns in multiple market sectors!

  • Mid-cap runners.
  • Options.
  • Crypto.
  • NFTs.

This framework keeps manifesting in the market because human beings are predictable during times of high stress and mania.

It’s human psychology. All we have to do is recognize the momentum and build ‘safe’ positions around support and resistance.

Of course it’s easier said than done. But anything worth having never came easy.

Watch my trading live streams to accelerate your learning curve.

There are stocks following these patterns RIGHT NOW.

It’ll continue all week. And next week. And next month. And next year.

What are you waiting for?!

Start learning the process for small-account profits!

Cheers.


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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 (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”