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Trading Lessons

The Next Profitable Livestream!*

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Written by Timothy Sykes
Updated 6/12/2024 4 min read

On Wednesday this week I held a trading live stream for all of my challenge students.

And LIVE … On camera … I snagged a profit from the 390%* day-one spike on DDC Enterprise Limited (NYSE: DDC).

On the chart below, every candle represents one trading minute:

DDC chart intraday, 1-minute candles Source: StocksToTrade

See the post on X below:

Here are my trade notes. I pulled 12% from DDC with a starting stake of $10,950:

Source: Profit.ly

I already mentioned in an earlier blog post this week: We look for the same stock spikes every day.

And sure enough: DDC followed the same framework as the 70% spike on Airship AI Holdings Inc. (NASDAQ: AISP) from a day earlier.

See my post on X below with more details:

You should have been prepared for this!

Don’t miss the next live-stream trade opportunity:

LIVE Profit Opportunities

timothy sykes in matera in 2022
© Millionaire Media, LLC

These small-cap runners (DDC and AISP) are short squeezes.

Short sellers see a crappy stock that’s spiking, then they short the price action hoping that it will crash.

It’s a decent trade strategy in theory. But we’re in the middle of a red-hot 2024 stock market that continues to make new highs. Plus, the short selling strategy is overcrowded right now.

When there are too many short sellers in a stock, any bullish momentum could cause a domino effect of short sellers blowing up.

We’re not interested in the fundamentals of these crap stocks.

Instead, we play the short-term volatility using support and resistance levels. Focus on technical analysis for these runners!

In the stock market, there’s a time to trade volatility, and there’s a time to trade fundamentally bullish stocks.

DDC and AISP are examples of volatile profit opportunities.

But  … there’s a live stream tonight to discuss stocks with groundbreaking fundamentals.

The AI sector is switching avenues.

This technology is evolving quickly! And the surrounding market environment is evolving too.

For example, no one could have predicted the meteoric rise of stocks like NVIDIA Corporation (NASDAQ: NVDA) when the AI sector burst on the scene in early 2023.

Since February 1 of that year … NVDA spiked 540%*. And it just made new all-time highs yesterday.

This market is DIFFERENT.

And the AI sector is about to switch gears in a BIG way.

My friend and student, Tim Bohen, has all of the details surrounding this market shift. See his post on X below:

AI is the biggest force pushing the market higher right now.

And we’re about to hit the reset button! Don’t miss this opportunity to get-in-early on AI’s next evolution*:

>> The live stream is tonight, June 13 at 8 P.M. Eastern <<

Cheers.

 

 

*Past performance does not indicate future results


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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”