timothy sykes logo

Trading Lessons

Post-Election Volatility Continues!

Timothy SykesAvatar
Written by Timothy Sykes Reviewed by Jack Kellogg Fact-checked by Ellis Hobbs
Updated 12/9/2024 4 min read
Post-Election Volatility Continues! Thumbnail

It’s Tim Sykes here.

Stocks in the post-election market continue to rip higher.

We knew this would happen …

Post-election markets are always ripe with volatility. And history tells us that this volatility will continue AT LEAST for the next few weeks.

That means more spikers like Monday’s 490%* run on LeddarTech Holdings Inc. (NASDAQ: LDTC).

Take a look at the chart below, every candle represents one minute:

LDTC chart intraday, 1-minute candles Source: StocksToTrade

Get the next Breaking News announcement.

We can trade this volatility for profits. The most volatile spikes like to follow popular patterns that repeat in the market.

And the strongest spikes start in the morning!

That’s why we discussed waking up early to find profits. Rewatch my recent video for more examples.

I know that waking up early is tough …

But you’re not alone!

I’m waking up early. So are my millionaire students. And so are countless up-and-coming students in the chat.

Follow me on X! I like to post morning motivation on social media.

Take a look below:

 

Start paying attention to this post-election catalyst! And get ready for the next runner.

Here’s how we capitalize on these spikes …

Trade Setups

LDTC showed us a perfect setup on Monday, December 9.

The price started to spike at 7:30 A.M. Eastern, during premarket hours.

More Breaking News

We can trade premarket. And that’s where a lot of these spikes start.

Here’s a perfect example of my student recognizing the premarket setup on this 490%* runner:

Source

We’re not trying to catch the entire 490%* spike.

When LDTC started to push higher, there was no way of knowing that it would run as high as it did.

Instead, we wait until the chart matches one of my patterns.

I also traded this runner in premarket for a 15% profit:

Source: Profit.ly

Now … I’m trading with a larger position size than most of my new students.

You can start with as much or as little as you’d like. I actually encourage my students to start small and focus on the percent gain. Then they can size up as they get more comfortable.

LDTC never spiked above $2 in premarket. Theoretically, you could have bought one share to practice this process.

And you don’t have to buy at random or flounder as a new trader …

My newest students use AI to track this price action on the hottest stocks.

Ever since ChatGPT burst on the scene in 2023, I knew that AI could help my students learn this process more efficiently.

After months of prompting my AI with the same trade patterns over-and-over again, it can finally call these setups all on its own!

>> Get The Next AI Trade Alert <<

Plus, you don’t have to wait for the alerts …

Prompt my AI with your favorite stock at any time and it will spit out a trade plan as if you asked me directly.

My students can trade like I’m in the room with them!

Get ready for more volatile spikers this week … Push hard and relax on the weekends!

Cheers.

 

*Past performance does not indicate future results

How much has this post helped you?

(0 votes, average: 0 out of 5)
Leave a reply

* 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”