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Patterns To Watch

The Same Pattern Over And Over Again …

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Written by Timothy Sykes
Updated 2/20/2024 7 min read
The Same Pattern Over And Over Again … Thumbnail

The short squeeze is alive and well!

Don’t miss your next opportunity to profit …

Yesterday we watched Intuitive Machines Inc. (NASDAQ: LUNR) extend its 2024 spike to 470%.

There’s a chart below:

LUNR chart multi-month, 1-day candles Source: StocksToTrade

I missed the main part of the move and still managed to pull a profit.

Here’s how:

The most volatile stocks in the market can follow popular patterns. The pattern that I used on LUNR yesterday, I also used it to profit on Beamr Imaging Ltd. (NASDAQ: BMR) and Datasea Inc.(NASDAQ: DTSS). All three of them are short squeezes.

I bet you want to see how I did it …

For free?

OK deal, let’s do it.

I am a teacher first and foremost.

If I was in it for the money I would keep the patterns for myself. And I wouldn’t spend every waking moment trying to share obvious profit opportunities with up and coming traders.

My life would be more relaxing if I wasn’t mentoring thousands of students. But hey … We can’t all live like the Kardashians.

I’m in this niche to spread awareness.

And it feels good to be a transparent trader in an industry full of fakes. All of my trades are recorded right here.

I’m not selling stock picks, I’m showing you how to profit on huge runners!

There’s one pattern that I used to profit on LUNR, BMR, and DTSS. The next time you see a giant short squeeze, watch for THIS price action:

Beamr Imaging Ltd. (NASDAQ: BMR)

© Millionaire Media, LLC

On February 12, BMR announced a partnership with NVIDIA Corporation (NASDAQ: NVDA) for ‘automated video modernization’.

NVDA is the star of the U.S. stock exchange right now. The +$1 trillion tech company makes high-demand microchips necessary to support sophisticated technology like artificial intelligence.

The announcement of a partnership with NVDA is huge news for a penny stock. But that doesn’t mean BMR is prime to become the next tech giant. The resulting 1,500% spike was unsustainable.

Short sellers knew that and they blew up trying to ride the price lower.

If we’re wise to the move, we can profit before the price eventually crashes.

There is a way to profit on the way up. There are actually a few profit angles within the penny stocking framework.

But one of my favorites is dip buying on the way down.

That’s how I played BMR, starting stake of $16,710:

Source: Profit.ly

Here it is overlaid on a chart:

BMR chart intraday, 1-minute candles Source: StocksToTrade

The price never made it back to $34. But that was never my goal.

I played a very specific strategy and got out with profits before the price continued lower.

Let’s see it again …

Datasea Inc.(NASDAQ: DTSS)

© Millionaire Media, LLC

On February 13, the company announced Q2 revenue numbers. The data was fairly bullish, but prices hardly reacted.

The next day, February 14, the price spiked in premarket.

Short sellers saw it as an opportunity to short a crappy stock spiking late after earnings.

But the short squeeze catalyst is alive and well.

Too many short sellers piled in, and as they were forced to exit and buy back shares into bullish momentum, the price launched 1,200%.

Again, I used a back-end pattern to profit. Here are my trade notes, starting stake of $14,470:

Source: Profit.ly

And the trade overlaid on a chart:

DTSS chart intraday, 1-minute candles Source: StocksToTrade

That looks kind of familiar … Doesn’t it?

I’m not done.

Intuitive Machines Inc. (NASDAQ: LUNR)

© Millionaire Media, LLC

You already saw that LUNR is on a HUGE multi-day run:

It was already on my watchlist. That’s why I had eyes on it.

But for new traders, there’s a tool that alerts these moves before they go vertical. Breaking News alerted LUNR at 8:27 A.M. Eastern. Way before I entered my trade.

See the Tweet below:

Here are my trade notes for LUNR, starting stake of $16,140:

Source: Profit.ly

And here it is overlaid on a chart:

LUNR chart intraday, 1-minute candles Source: StocksToTrade

Every stock will move a little differently. Every spike is unique, like a snowflake, but they follow a general pattern.

This is an inexact science. But a science nonetheless.

There’s a process for profits. It just takes some experience before a trader can recognize the plays on their own.

That’s why I hold trading live streams.

My students get to experience the market first hand and in real time WITHOUT the account exposure.

Watch the next livestream and this trading process will start to click.

Cheers.

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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”