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Patterns To Watch

Study These Recent Trade Patterns!

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Written by Timothy Sykes
Updated 3/12/2024 5 min read

Let’s go over some recent trades so that you know what to look for.

There are profit opportunities every single day in this 2024 market. I made two trades on Friday. Both were profits from the same stock.

We’ll analyze the details of the spike, but before I show you my process for profits … You need to understand the reality behind these stocks.

They’re garbage.

We’re not investing in these stocks. We’re trading the volatile price action for short term profits.

The stock will eventually crash.

But before that happens, market news and hype can cause these tickers to spike anywhere from +100% to +1000%.

The momentum is jaw dropping.

Follow the rules and your account will stay safe.

Don’t Even Think About It …

risks with position trading
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“If the stocks are going to crash, let’s just short sell them.”


Lolol, trust me, there are already people trying to do that.

And sometimes it leads to huge short squeezes. That’s when short sellers buy shares back at higher prices as they panic to get out.

The dangerous thing about short selling is that you can lose more money than you put in.

For a long position: Let’s say you buy $100 of stock in the market. Worst case scenario the stock goes to $0 per share and you lose $100.

For a short position: Let’s say you borrow shares and sell $100 worth of stock. Now you have $100. The goal is to buy the shares back at a cheaper price and keep the difference. But if your position runs to a value of $300, now you have to buy those shares and you’re out $200.

I don’t teach my students to short sell because of the risk. And short squeezes are common right now in the market.

Instead, focus on these long strategies:

Psyence Biomedical Ltd. (NASDAQ: PBM)

Tim Sykes checking his top penny stocks list in Italy
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This stock started to spike on Wednesday March 6 after it announced approval from the Australian Health Research Ethics Committee (HREC) to begin a planned Phase IIb study.

It’s one of the psychedelic biotech-adjacent runners right now (another is Mind Medicine Inc. (NASDAQ: MNMD)).

The big spike on PBM was on Friday, March 8. That’s when I made my trades.

Take a look at the chart below. You’re seeing premarket trading hours on the left and regular hours on the right.

PBM chart intraday, 1-minute candles Source: StocksToTrade

Here are the links to each trade:

My profit amounts aren’t exactly necessary information. You can check the links if you like. But we’re most interested in the percent gain.

Once you manage consistent percent gains, that’s when you can size up to start making more money.

Here’s the general idea behind each trade.

#1: Breakout

I was already watching PBM because it spiked in premarket.

The price action put in a top around $3. When the market opened for regular trading at 9:30 A.M. Eastern, I was watching for PBM to break through resistance.

It halted after breaking premarket highs, and that always sketches me out a bit. So I sold for a ‘safe’ profit.

#2: Dip Buy

The stock reached day highs around $4 before noon.

Every spike has to pull back eventually. The only question is: How far?

We can use past price action to identify areas of support that the stock might bounce off of.

I saw PBM consolidate around support at $3.50 and I bought shares in anticipation of the bounce.

The support at $3.50 comes from the resistance it showed earlier in the morning.

Resistance can become support and vice versa.

When the stock bounced a bit, I sold my position.

Small Gains Add Up

Millioniare Mentor Update Avoid the Slippery Slope
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You don’t need to take the whole move!

We focus on big percent gainers so that there’s more room for error. Lean into that.

Nobody knows how high the stock will spike. If you swing for the fences, you’re essentially gambling. And gamblers get eaten alive out here.

I approach every single trade with this mindset. And I recently passed the $7.6 million profit milestone.

Granted, every stock looks a little different.

That’s why I hold trading live streams. My students can gain necessary trade experience without the account exposure.

Join the live streams this week to follow the market’s biggest runners.


*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

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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”