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7 Crucial Reasons Small Account Traders Need This Strategy Now

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Written by Timothy Sykes
Updated 11/22/2023 6 min read

I’m constantly hounded on social media from folks looking for shortcuts.

What should I learn first? What is the fastest way to make money trading? Is there one strategy that can give me big results right away?

I’m usually honest and respond with: there are no shortcuts in this game.

However, I do believe with the right training, you can potentially reach your goals faster.

In fact, if there’s one strategy I believe every trader with a small account should master…it’s my weekend strategy (take advantage of this Black Friday offer here).

Not only has it been one of my most consistent strategies this year…it’s also responsible for a large portion of my $7.5 million in career trading profits.

Here are 7 crucial reasons why small account traders should learn this strategy.

#1: It’s Repeatable

position trading the bottom line
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Becoming a better trader requires putting in the reps. However, if you’re constantly trading random setups and without a trading plan…it’s nearly impossible to improve.

The reason why my weekend strategy is so great for traders of all skill levels is because it’s repeatable.

The setup occurs around the same time on Friday’s.

Which is critical if you want to measure your progress and later scale up.

#2: Teaches You The Foundation of Catalyst Trading

sykes and kyle williams on laptop
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If you want to be successful at day trading then you must become comfortable trading fast-moving stocks.

In most cases, stocks will move more when there’s new information AKA catalysts.

Traders digest that new information while trading the stock.

That’s what creates a lot of the volatility. As a short-term trader, you want to see volatility because that’s what creates the opportunity to get in and out quickly.

My weekend strategy focuses on catalysts…but in a sneaky way which “slows down” the action…making it an ideal catalyst trade to learn for newer traders.

#3: Works In All Kinds of Market Conditions

e-trade penny stocks to watch in 2020
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Tends come and go in trading.

Some strategies work well in certain market conditions and can be worthless in others.

That’s just how markets work…they’re dynamic.

But one thing that is pretty consistent is catalyst trading. There’s always new information coming into stocks…creating the volatility and opportunity we need for trading.

#4: Opportunities For Potentially Big Gains

I have a tendency to get out of plays too early.

It’s not uncommon for me to take profits at 15% on a trade…and then later see that stock move up 40%, 50%, or even 100%.

That said, my weekend strategy puts me in a position where I’m “forced” to hold because the market is closed on Saturday and Sunday…giving me a potential chance to make substantially bigger gains on Monday.

 

#5: Helps Improve Trading Discipline

frequently asked questions about penny stocks to watch
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One thing newbie traders struggle with is sticking to their trading plan. They’ll jump into a trade…get in and out…without any rhyme or reason.

Or they’ll have a plan…and then completely abandon it.

My weekend strategy makes it a lot easier to stick to the plan.

You know when you’re getting in and out. And because the market is closed on Saturday and Sunday…it’s easier to follow through.

#6: Ideal For Those With Full-Time Jobs

stock catalyst examples conclusion
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Finding time to trade can be difficult when juggling a full-time job.

The beauty behind my weekend strategy is that it’s once a week at around the same time.

This allows you to prepare for it…and doesn’t  force you to be glued to your screen all day.

#7: Small Account Friendly

If you have a small account then you have to deal with the pesky pattern day trader rule.

This can be extremely challenging if you want to actively trade.

However, my weekend strategy is just one trade per week, making it an ideal setup for those who are worried about the pattern day trader rule.

 

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  • Spot lucrative low-priced stocks 📈
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  • Potentially improve your profit-taking timing ⏰

This is the strategy behind some of my biggest trading wins of my career.

It’s been a cornerstone of my $7.5M trading journey and a strategy I’ve taught all my millionaire students.

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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

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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 (205) 851-0506 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”