Press Alt+1 for screen-reader mode, Alt+0 to cancelAccessibility Screen-Reader Guide, Feedback, and Issue Reporting | New window
timothy sykes logo

Patterns To Watch

The Best Trade Setups In A Red Hot Market

Timothy SykesAvatar
Written by Timothy Sykes Reviewed by Jack Kellogg Fact-checked by Ellis Hobbs
Updated 7/7/2025 6 min read
The Best Trade Setups In A Red Hot Market Thumbnail

On Monday, July 7, we saw some insane profit opportunities …

The market’s in a frenzy right now.

For example, on Monday, CNN’s Fear and Greed index measured Extreme Greed in the stock market. Look at a screenshot below:

Source

We also saw another low-priced stock spike to insane heights on Monday …

A biotech company announced an orphan drug designation from The U.S. FDA for its MB-101 treatment of Glioblastoma (brain tumors) during premarket hours.

The stock spiked 480%* that morning.

Could this be this week’s BMNR?

Remember, BitMine Immersion Technologies Inc. (AMEX: BMNR) spiked 3,600%* last week! The move started on Monday, June 30, after it announced some hyped-up crypto news.

And the price reached its highs toward the end of the week …

Look at the price action of BMNR below. Every candle represents ten trading minutes:

BMNR chart multi-day, 10-minute candles Source: StocksToTrade
BMNR chart multi-day, 10-minute candles Source: StocksToTrade

This week’s FDA stock could follow BMNR’s lead …

Get ready for the next +100% surge!

How To Trade This Volatility

We’re in a golden era of trading right now, and it’s all thanks to the larger market volatility.

Look at this insane chart of the S&P 500 ETF Trust (NYSE: SPY) below.

Every candle represents one trading day:

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

Almost all the volatility is due to Trump’s tariffs.

And once again, we’re in the middle of a tariff deadline …

Trump’s 90-day tariff pause is set to end on Wednesday, July 9.

Currently the White House and U.S. trade partners scramble to find common ground and strike trade deals before the deadline expires.

Make no mistake, the events of the next 24-48 hours could send the market on a definitive boom or bust trajectory.

And this next part is very important …

As a small-account trader, I don’t care whether the market booms or busts.

I’ll never beat the larger market at timing these price swings.

Instead, I’m interested in the volatility among smaller stocks.

This is the volatility where my students and I profit.

And in this 2025 stock market, the volatility is booming!

Here’s how I find the best trades right now:

The biggest spikes in the market, on cheap stocks, can follow the same trade patterns over and over again.

It’s because the people trading the stocks are predictable during times of high stress.

For example, on yesterday’s FDA stock, Mustang Bio Inc. (NASDAQ: MBIO), we saw a textbook breakout trade setup and multiple dip buy opportunities.

This stock spiked 460%* as a result of the FDA news.

You can see the spike and trade opportunities on the MBIO chart below. Every candle represents one trading minute:

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

To put things in perspective …

  • The breakout trade offered a 130% gain opportunity.
  • The first dip buy trade offered a 20% gain opportunity.
  • The second dip buy offered a 45% gain opportunity.

Now, it’s unlikely that any trader times these trades perfectly.

But when the stock spikes 460%*, there’s a lot more room for error.

And there are setups like this almost every single day in this 2025 market.

On July 16, I’m going LIVE with a handful of students to teach you these setups in real time.

Watch my video below for details on how to attend:

The Next Surge On MBIO

I already mentioned it …

It’s possible that MBIO extends this spike into a full blown supernova, like BMNR from last week.

These huge spikes happen when too many short sellers try to profit from a crappy stock spike.

They have the correct thesis, the stock will crash eventually. But in the short term, as short sellers continue to squeeze each other out, there’s no telling how high it could go.

MBIO spiked to $7 per share on Monday, July 7 …

But BMNR spiked to $161 per share last week!

Now, with that said, there are a lot of +100% stock spikes that fail after the first day.

I’m not holding shares of MBIO in hopes that it spikes higher.

Instead, I wait for the stock to show me the price action that matches my patterns.

Right now on MBIO, I’m looking for a panic dip buy (if the stock collapses) or a breakout past $7 (if it surges).

The stock has everything that it needs to spike higher:

  • A news catalyst.
  • A low float.
  • A huge price spike to lure in short sellers.
  • A high trading volume.

All we have to do is sit and wait.

Plus … There are more stocks spiking in the meantime.

Follow me on telegram for free alerts!

Cheers

 

*Past performance does not indicate future results

How much has this post helped you?

(0 votes, average: 0 out of 5)
Leave a reply
Author card Timothy Sykes picture

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”

ts swipe photo
Join Thousands Profiting From Smart Trades!
TRADE LIKE TIM

We use cookies to provide you with the best online experience. If you continue browsing, we consider that you accept our Cookie Policy , and also agree to the terms of our Privacy Policy and Terms of Use.

notification icon
Subscribe to receive notifications