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Patterns To Watch

My #1 Pattern On THIS Stock

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Written by Timothy Sykes
Updated 7/26/2024 4 min read
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The stocks that we trade, volatile runners, they don’t spike forever.

Eventually they crash.

But …

These spikes can last for days and weeks. On a single stock we could see multiple opportunities to profit.

Serve Robotics Inc. (NASDAQ: SERV) is a perfect example. This stock is on a multi-day run that measures 530%* so far.

And it’s still in play!

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

SERV chart multi-day, 1-minute candles Source: StocksToTrade

The price is still up!

And as a result, there’s a very specific pattern that I’m looking for right now.

If the price action looks like THIS … I’ll make a trade.

My #1 Pattern For SERV

© Millionaire Media, LLC

I’ve already traded this move six times since the spike started …

I’ll share my most recent trade in a second, but first:

Understand the opportunity for multiple profits from a single stock.

These volatile runners like to follow a common framework. And within the framework there are a few different setups that we can trade.

Study the entire framework!

But in the beginning, it’s best to focus on a single pattern so that you don’t get confused.

There’s A LOT going on in the market. And it’s easy to get distracted.

A new trader with an arsenal of trade patterns that they don’t fully understand, is a lot like giving a monkey a grenade … Dangerous.

That’s why I encourage you to focus on one setup.

More Breaking News

Right now, one of the best patterns to use on SERV is the morning-panic dip buy.

My students are always surprised at the accuracy of these plays. I was trading SERV on Friday morning and one of my students posted a chart of the exact pattern that I used.

Take a look below:

Source

Here are my trade details from the same time:

Source: Profit.ly

This is a simple pattern that traders can use to trade SERV!

Watch the pattern tutorial on YouTube.

Simple? Yes.

Easy? Not exactly.

There’s still risk involved when we trade these stocks, even with the best patterns. There’s a decent amount of human error when traders are first learning this process.

That’s why my newest students use AI to track the hottest stocks.

They’re the same patterns over and over again … Even AI can track this price action.

>> Use AI To Build Smart Positions On SERV Starting Monday <<

This AI trading tool knows how to follow our framework.

Take advantage of that!

Cheers.

 

*Past performance does not indicate future results

 

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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”