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My Trading Plan For Monday

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Written by Timothy Sykes
Updated 9/22/2023 6 min read

Ever heard the phrase, “Go big or go home?”

Trust me, in the trading world, that attitude can drain your portfolio fast.

I consistently remind my students about one thing: successful trading isn’t about making big, reckless moves.

As we transition from September to October, it’s crucial to stay alert and informed as to what’s happening.

This week, I’ve highlighted three key pointers for my students to consider before their next trade.

Ready to trade smarter?

Dive in to see the insights I shared.

History Matters

History matters more than you think when it comes to trading.

It absolutely blows my mind how clueless some traders are when you ask them questions about the history of the market.

Every trader needs to be aware of what’s currently happening in the market…

And you also need to be aware of what has happened in the past.

Right now, these early morning squeezes are happening left and right…

Typically I would be looking for a morning panic, but that’s not what’s working right now…

So I changed my strategy around based on what the market was giving me.

You can see all of my most recent trades right here! 

Not only did I adapt to what’s working right now, but I’m also fully aware of how ugly September and October have been in the past.

When it comes to trading, there are a lot of variables you need to understand…

And the more you know, the better prepared you’ll be for the days ahead.

Back in 2020 and 2021 I was way more aggressive with my trades because of how the overall market was performing…

Now it’s not the best idea.

Just because we’re seeing a sell-off over the last couple of weeks, and we should expect that to continue throughout a part of October…

That doesn’t mean there won’t be many opportunities for you to take advantage of.

We’ve seen so many opportunities over the last few weeks, despite the sell-off, all thanks to these over-aggressive short sellers!

So as we are starting another week, be cautious of how the overall market is performing and be cautious before you make your next trade.

Just Trade Small

With the market looking the way it does, there’s no need to be overly aggressive with your trades.

Every time I get too aggressive, I get punched right in the gut by the market.

I trade conservatively because I’ve been gut-punched in the stomach way too many times from being overly aggressive.

I learned my lesson, and in a market like this, I hope you can learn from my mistakes and understand the importance of trading small.  

The great thing about trading with a small account is that we’re finding some amazing squeeze plays…

And you truly don’t know how high they could go, so therefore, you don’t need to risk a lot to make a lot!

YTD I’m up over $44,000…

I’m not doing anything great, not locking in huge wins…

I’m simply trading scared, locking in singles, and cutting my losses quickly.

Remember, just as quickly these stocks go up, they can come back down just as fast…

So don’t do things like HODL…

Instead, I want you to trade scared, cut your losses quickly, and take singles like me.

HODLING is so dangerous, you need to understand that.

Just take a look at how choppy MSP Recovery, Inc. (NASDAQ: LIFW) is…

Source: StocksToTrade

Up, down, up, down….

Imaging HODLING through this?

Aye, aye, aye, I can’t!

I would have way too much anxiety seeing my PnL statement fluctuate that much.

That’s not my style, nor should it be yours….

There’s not a good reason behind these spikes, other than these over-aggressive short sellers.

More Breaking News

So be safe, trade small, and just be meticulous with your entries and exits!

Be Meticulous With Your Entries And Exits

Take a look at my comments on one of my latest trades, Novo Integrated Sciences, Inc. (NASDAQ: NVOS)…

Source: Profit.ly

I was alerted about this play, thanks to StocksToTrade Breaking News…

And I had a goal of 10-20%.

I don’t just dive into any trade head first, I like to look back at the chart to get a better understanding before I do…

Plus I’m also focused on the current price action.

Looking back at the chart, I can see it has a history of spiking, but failing relatively quickly, so I had an idea of where my exit would be by looking for some key support and resistance areas. 

Source: StocksToTrade

Based on what I saw, I had a set goal in mind…

And despite the overall market tanking that day, I had to give this trade a shot because I would’ve felt too guilty about missing it based on its price action, solid news, and with there being so many over-aggressive short sellers in here.

I bought NVOS at $0.295 and sold it at $0.322 for a 9% profit!

Source: StocksToTrade

When I saw the stock running higher, volume increasing, solid price action based on the news…

These are the types of plays you want to look for!

I didn’t buy and hold…

I just took the meat of the move and sold into strength.

I want you to have a plan, so focus on what’s working and be willing to change your strategy if needed.

Every day there are FREE trading sessions to help you better understand where the opportunities are.

Keep studying, stay safe, and I’ll be sure to alert you in chat based on what I see next. 

-Tim

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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.
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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 (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”