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How I Locked In A $1,710 Monday Morning

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Written by Timothy Sykes
Updated 9/25/2023 6 min read

Picture this…

It’s Friday afternoon, you place a trade, close your laptop, and forget about it.

Come Monday morning, you feel refreshed, and you happen to notice that your trade is spiking higher just a few minutes after the market opens!

There’s no better feeling than kickstarting your week off with a win…

And that’s exactly what happened to me!

On Monday, I locked in a $1,710 win on Mondee Holdings, Inc. (NASDAQ: MOND)…

All thanks to my over-the-weekend strategy!

If you happened to miss this play, there’s no need to worry…

Because in just a few seconds I’m going to break down this trade from start to finish to help you better understand what to look for when Friday rolls around.

Let’s dive in!

Is There A Catalyst ?

Over the last several weeks, we’ve seen a handful of stocks soar 50%, 100%, or even 250% in just a day…

And most of those plays happened simply due to these over-aggressive short sellers…

But before we started to see that shift in the market where short sellers were the main reason behind the spikes we’ve been seeing…

The majority of my trades revolved around some type of news catalyst.

That’s why I’m always reminding my students to keep an eye on StocksToTrade Breaking News because, in the past, we’ve seen how powerful news catalysts can be.

You never know when there’s going to be a news play…

And when you spot a big percent gainer, there can be multiple reasons behind its move…

Maybe it’s news related, from promoters, short squeezes, whatever it may be…

You must understand the big picture when it comes to trading, and I’ll show you why that is in just a minute.

On Friday, MOND spiked based on the news of its repurchase program… 

But before that news, the stock dropped nearly 50% in just a week!

Take a look at this chart…

Source: StocksToTrade

MOND has been beaten down over the last several months…

Something we’ve seen a lot lately, but just because the stock is being hammered down doesn’t mean there won’t be any opportunities for you to take advantage of down the road…

You just need to have all of the right pieces come together.

Every day I’m scanning the market for big percent gainers…

And when I saw MOND spiking early in the morning, I knew I couldn’t chase it…

Instead, I was closely watching it to see if this strategy would come into play.

First Green Day

Since all this happened on a Friday, traders would have the weekend to digest the recent news on MOND…

And by Monday, I expected this stock to bounce higher, and here’s why I thought that.

Looking back at the past few days, MOND has been hit hard…

Nothing really good has been happening, but when I dove into it a little bit more, here’s what I saw…

Source: StocksToTrade

Take a look at where I drew the circles and the arrows…

Historically, when there was a First Green Day, MOND continued to move higher over the next several days…

So I was a little bit optimistic it could do it again based on the chart history.

Now, with that being said, I wasn’t necessarily expecting it to run for multiple days…

Instead, I was simply looking for MOND to run up early on Monday morning.

Even though MOND was a First Green Day with news, I still wasn’t fully convinced that I should trade it…

More Breaking News

I still look at one more thing to help have a better understanding of when to buy and sell.

Putting It All Together

Looking at Friday’s chart, MOND was a little bit choppy, especially towards the end of the day…

But it was trading between $4.30 and $4.50 for most of the afternoon, take a look…

Source: StocksToTrade

In the chart above, I noted where the support and resistance were and that’s going to play a key role in when I decided to sell on Monday morning.

MOND was spiking in an ugly market, and it was able to hold its gains going into the close…

Seeing that, I finally had enough confidence to trade MOND.

I bought MOND at $4.38, but then it started to fade as we headed into the close, but that’s when the overall market started to tank, too.

Now, it’s not always an exact science, but I felt confident based on how solid the support was around $4.30, the history it has had on a First Green Day, plus there was a news catalyst that could help push the stock through its recent highs on Monday and keep going…

So I added a few more shares at $4.31.

Come Monday morning, you can see where MOND sold off a little at the market opened, but bounced off that key resistance level from Friday…

I sold MOND at $4.63 into strength for a $1,710 profit! (Risked $26,070).

Most newbies tend to get caught up in the moment and hold onto their trades longer than they should…

Or just simply panic and sell without understanding the big picture…

But here you can see how diving into the bigger picture helped me realize where a key resistance area was so I could be more confident in when I was going to buy and sell MOND.

Trading is all about being prepared, that’s why I encourage all of you to attend this FREE trading session.

Remember, the market is always changing and if you want to succeed, you need to know how you can spot some of the best opportunities out there and how to trade them.

Stay safe and I’ll see you in chat.

 

-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”