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Patterns To Watch

An Obvious Setup To Watch Right Now

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Written by Timothy Sykes
Updated 1/30/2024 6 min read
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There are predictable spikes in this niche RIGHT NOW.

But your average trader approaches the market incorrectly. Most people comb through popular news services to try and find the next big move.

Places like …

  • CNBC
  • CNN
  • Yahoo Finance

But there are two main issues with that strategy:

  • By the time these companies report it, the setup is over.
  • They don’t even cover the best plays in the market.

Yesterday’s hottest trade opportunity spiked 60% before 10 A.M. Eastern.

There were clear opportunities to profit. But not if you waited to hear about it from CNBC.

There’s a new play like this every day.

  • Yesterday it was PXLW.
  • Monday it was NEXI (and the spike continued on Tuesday).
  • Friday it was CRBP.

The market is one fire right now! On Monday the S&P 500 ETF Trust (NYSE: SPY) surged to new all-time highs.

There’s an updated chart below …

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

I know that I talk about this every day. That’s because there isn’t anything else to talk about.

Small-account setups are the most important aspect of the market right now. The larger market is hot and that momentum trickles down into cheaper stocks.

We can load up on cheap shares and ride the momentum for substantial profits. That’s the whole idea behind my process. And it’s how I’ve pulled $7.5 million in trading profits to date.

There’s always a play to make in this niche.

But when the market is hot like this, you have to lay your foot on the gas. This momentum won’t last forever.

The market ebbs and flows … Pay attention while we have this insane bullish influence!

Pixelworks Inc. (NASDAQ: PXLW)

© Millionaire Media, LLC

These spikes are “predictable” because the companies rarely announce bullish news.

When they do, there’s often a volatile response.

In the case of PXLW:

On January 30 during premarket hours, the company announced a new multi-year agreement with Walt Disney Studios. Disney would like to utilize PXLW’s TrueCut Motion technology.

The stock started to spike right away.

PXLW chart 1-day, 1-minute candles Source: StocksToTrade

The TrueCut Motion software boasts higher video quality and a better viewing experience.

  • Is the technology truly groundbreaking?
  • Will this change the industry?
  • Will PXLW spike even higher?

I don’t know. And I don’t care.

This is a crappy company that miraculously secured a multi-year deal with Walt Disney Studios, a company that’s known in households globally.

It doesn’t matter what the technology does: I’m here to trade hype. And a Walt Disney contract invites A LOT of hype.

It’s possible PXLW spikes higher, but I don’t want to gamble on that.

I use a few popular patterns to trade the market’s hottest stocks. If the price action matches my pattern, I’ll make a trade.

I’m not holding shares of PXLW with my fingers crossed. There’s a process for profits in this niche.

My Trading Framework

tim sykes pointing at chart
© Millionaire Media, LLC

I’m not the only one who caught this runner.

A lot of my students banked. Every day we cover the hottest runners and the best trade setups. It’s only a matter of time until people start to catch on.

I’ve been teaching for over 2 decades. And I already have more than 30 millionaire students. With more on the way …

There’s a lot of opportunity to profit in the market right now!

And thanks to my trading framework, there are a few different ways to trade spikers like this. It all depends on what works for you.

For an example, I traded PXLW twice:

PXLW chart 1-day, 1-minute candles Source: StocksToTrade

Yesterday I was buying the break outs and selling into strength. That’s one of the patterns that my students and I use to profit.

But every stock chart is a little different.

Now that yesterday’s move is over, this strategy might look easy. The chart won’t look exactly the same today. That means we have to plan a new trade.

My students eventually learn how to do this for themselves. Until then, they attend my trading live streams.

New traders need experience! There is a process for profits, and we only use a handful of patterns. But the stocks are different every week, and the charts never look exactly the same.

The more live streams that you attend, the faster this will start to click. Follow along until you catch up to speed.

Don’t miss this week’s profit opportunities.

These stocks will spike whether you’re watching or not!

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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”