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Patterns To Watch

A Simple Stock Pattern — K.I.S.S.

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Written by Timothy Sykes
Updated 1/18/2024 6 min read

Don’t complicate this process.

Stock trading isn’t rocket science. A lot of people are doing too much.

Let me explain: there are only a handful of decent trade setups every week. Excluding this Friday, I’ve only made one trade this week.

Granted, the market was closed on Monday in observance of Martin Luther King Jr. Day, but you get my point.

You don’t need to trade a bunch of stocks to profit.

Our time is better spent focusing on the best setups using one pattern.

You can add patterns to your arsenal as you progress. But at first, too many profit angles are confusing for new traders.

All my millionaire students started with a single pattern.

There are only a few to choose from, I suggest you focus on the popular Friday strategy right now.

Keep your day job. You don’t need to trade all week long, just tune in on Fridays.

So far in 2024 I’ve already used this pattern twice. Take a look at the results below …

Source: Profit.ly

Source: Profit.ly

$5,000 before the month is over aint too bad. But …

Attention: This is NOT a get-rich-quick scheme.

I can only profit as much as the market is willing to give me.

You need to have the right mindset when approaching these plays. There are real opportunities. However, the wrong mindset can cause losses.

I’ll explain the process in today’s blog post.

Make sure to follow this process …

Afternoon Price Action

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Maybe you noticed from my trade screenshots, I entered these trades in the afternoon.

I’m banking on weekend hype.

That means: when the stock market is closed on Saturday and Sunday, market news still circulates. The hype can build for certain stocks, and that can lead to a Monday spike.

Sometimes, the stock breaks out before the market closes on Friday.

That’s why it’s important to set alerts in the StocksToTrade software. If the price spikes before the market closes, it’s best to cash out early.

Here’s the interesting part …

Every stock chart is unique. Like a snowflake.

They can follow the same patterns, but the charts will always look a little different.

It’s an inexact science. But a science nonetheless.

I’ve been using the same framework to trade volatile stocks for over two decades. I’ve got $7.5 million to show for it and over 30 millionaire students that use the same process and framework.

Here’s how I find the best Friday spikers …

Key Factors

kyle williams and Sykes in Utah
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Only a few stocks will fit this pattern.

That’s a good thing. Imagine watching 30 different stocks and trying and pull a profit. No, thank you.

Simplicity is key. Don’t overcomplicate this.

There are a few factors that will narrow down my Friday watchlist. I use StocksToTrade to build this scan …

  • Recent news/bullish catalyst.
  • +20% spike on the day.
  • Volume above 1 million shares.
  • A float below 10 million shares.
  • A price below $5.
  • History of spiking.
  • Price consolidation mid-day.

It seems like a lot of factors. But remember there are thousands of stocks moving every day. These factors narrow it down to a handful of bullish runners.

Once I find the stock, I still have to trade it.

It’s ESSENTIAL we trade with a pattern. Nothing is 100% guaranteed in the market. The Friday play could fall apart.

And our trade plan can protect us from that risk.

A few losses are unavoidable in this niche. I only win 76% of the time. My trade plan helps me control those losses.

It’s still a good trade if I take a small loss.

That means I’m protecting my larger account.

This is a marathon. Not a sprint.

Let’s get to the specific trade plan I’m using. Depending on when you read this, there’s still time to profit from this Friday’s runner!

Key Examples

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I already mentioned that every stock is a little different.

I started to recognize these patterns once I gained enough market experience.

If you want to effectively profit from these moves, you need to look at past examples.

My two Friday trades in 2024 are a great place to start.

  • MAIA BIotechnology Inc. (AMEX: MAIA)
  • Applied UV Inc. (NASDAQ: AUVI)

Plus, I created a full tutorial to show students this profit process, front to back.

The information is right here.

There are 52 weeks in a year.

Aim to trade less than 52 times this year. That will keep you on the right track.

K – Keep

I – It

S – Simple

S – … Student

And, as always, if you have questions drop them in our live chat.

2024 is well underway and there are new profit opportunities every week.

There’s no time to waste!

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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”