timothy sykes logo

Trading Lessons

The Best Small-Account Setups Right Now:

Timothy SykesAvatar
Written by Timothy Sykes
Updated 5/30/2024 6 min read
The Best Small-Account Setups Right Now: Thumbnail

Ladies and gentlemen,

This market is PERFECT for small-account traders.

There are more trade opportunities every week!

First of all, join me in congratulating my newest millionaire student.

I dropped some of my posts on X below …

Congratulations Juan:

Source

And congratulations Logan:

Source

Logan hasn’t made it past the $1 million milestone, but he’s proof that I have more students on the way!

And in this 2024 market, it’s only a matter of time until I get to congratulate another trader-turned millionaire.

Pssssst … Keep an eye on AEye Inc. (NASDAQ: LIDR).

My students and I are banking off of this multi-day runner right now. It just broke to new highs yesterday, on Tuesday when the market opened.

See the post on X that I embedded below:

Source

Here’s an example of a profit that I pulled from LIDR late last week, with a starting stake of $22,490:

Source: Profit.ly

The best part about these plays: The massive percent gain is accessible for small-account traders due to the cheap share price.

For example, LIDR spiked above $5 on Tuesday. A trader could start with $10 in their brokerage account.

Here’s how I teach my students to trade:

Focus On The Percent Gain

© Millionaire Media, LLC

Big Wall Street fat cats live on hedge-fund interest.

Maybe they’re positions only gain 10% – 20% per year … But when they’ve got $5 million sitting in the stock market, that’s a yearly interest of $500k – $1 million.

For small account traders like us … Maybe we have $5,000 to put into the market.

And using the “fat cat” method, that’s only an extra $500 – $1,000 a year … It’s going to take a while to build wealth like that.

The percent gain of the stock is a key limiting factor.

Big stocks on Wall Street only move about 3% in either direction on any given trading day. That’s why it takes a full year to realize a 10% or 20% gain.

But smaller stocks can spike at higher percentages.

Small-account traders should focus on smaller stocks:

  • The shares are cheap.
  • The price can spike +100% intraday.

>> This is what the biggest percent spikers look like <<

I’ve been teaching students to trade for over 15 years.

To date, I have over 40 millionaire students, and counting!

But there are countless traders who stumbled upon my trading content, tried to replicate it, and failed.

My +40 millionaire students were successful …

Here’s How They Did It:

© Millionaire Media, LLC

My students who failed … They were too focused on the dollar gain.

Instead, it’s key to focus on the percent gain.

That means two things:

  • Focus on stocks that are spiking with BIG percent gains.
  • Focus on the percent gain of your trading positions.

A lot of people are good at the first instruction. It’s pretty easy to find a +100% spiker in the market if you know how to work a trading scan.

But following the second instruction truly separates the strong from the weak …

A lot of traders see a stock that’s spiking +100% in the market and they think about all the money they could make. That greed will push them into bad positions. They’ll force trades and ignore the rules. And ultimately they’ll blow up their trading account.

Stop focusing on the money!

Instead, start with a small position size and focus on the percent gain. Then increase your position size as you find success.

Stay strong! It’s easy to get sidetracked in this niche.

I think that’s why all of my millionaire students come from the Trading Challenge.

It’s a trading community hell-bent on personal growth and REAL profit opportunities. All my Challenge students have access to:

  • Live trade streams.
  • My AI trade bot.
  • The Challenge chat, where my existing millionaire students hang out.
  • A complete and in-depth breakdown of the trading process we use.

>> Apply to join my trading Challenge today <<

There’s a lot of volatility left in 2024, take advantage of these small-account opportunities!

Cheers.

Oh … Also,

Good luck finding ANY of these plays (like LIDR) from Yahoo Finance or CNBC … They’re too busy following the Wall Street fat-cat news.

Join me and my students for REAL profit opportunities.

 

 

*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”