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Lesson From This 2,050% Gainer! 🔥🚀🤑

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Written by Timothy Sykes
Updated 10/11/2023 6 min read

There’s one thing I’m incredibly grateful for…

And it’s these over-aggressive short sellers!

Almost every single day the market is open, there’s a short squeeze for traders to take advantage of…

Yet, I’m still seeing so many traders miss these amazing opportunities!

To help you be better prepared, I want to dive into how you can spot some of the best plays in the market before they happen…

What your plan should be…

And what your next steps are.

Let’s get to it!

How To Spot The Best Plays

So many people are messaging me about how they can find some of the best opportunities in the market…

Or how they can get the type of returns that most of my students did back in 2020/2021

You can’t go back in time to take advantage of missed opportunities…

But what you can do is learn from the past to help you better prepare for the future.

Trust me, there will be a hot market again…

The question is when…

As we can’t predict the future, and I didn’t even expect 2020/2021 to be as amazing as it was…

But when it happened, I was ready to take advantage of those opportunities because I was always preparing and studying the market’s past.

Yesterday, I was traveling and I missed an amazing opportunity…

And I hope some of you were able to capitalize on it.

Take a look at Tempest Therapeutics, Inc. (NASDAQ: TPST)

Source: StocksToTrade

 

TPST was spiking based on this news…

And StocksToTrade Breaking News was all over it!

Source: StocksToTrade Breaking News

Once again, we’re seeing the ugliest stocks giving us some of the best plays…

And I mentioned that earlier in the week.

If you want to spot some of the best plays you need to be prepared…

That’s why I tell all of my students they need to have StocksToTrade Breaking News and to continuously scan the market for big percent gainers.

Finding a big percent gainer is just the starting point for me, and once you find a stock moving higher, you need to know what to do next.

Your Next Step

I’m always thinking of what my next steps are going to be once I find a big percent gainer…

Every day I go through my list of stocks I’m watching to determine if they truly have an ideal setup…

And if they don’t, I don’t force any trades…

I just sit back and wait for the next best opportunity.

Even though I missed out on TPST, I wasn’t disappointed…

I know there could be a potential dip-buying opportunity down the road.

I even alerted my students about it in chat to show them what my thought process was.

Unfortunately, most newbies see a stock soaring and they just simply want to chase to get in on the action.

At the time I’m writing this, the last thing I would want to do is try and dip buy it because of how choppy it was…

Just take a look at this chart.

Source: StocksToTrade

Trying to dip-buy a choppy stock like this after the market opened would stress me out.

The stock kept getting halted since the market opened and just as quickly as it goes up, it could spike right back down…

And it probably will, but it’s the dip-buying opportunity I’m waiting for.

Before we continue on, I want you to take a look at where I drew the white line…

If I was ready for this play, I would’ve noticed it spiking earlier in the morning…

And I would’ve planned to buy it from its previous high of day breakout based on the surge of volume.

Now, I wouldn’t have held onto it to the $5 range…

I would’ve locked in my profits along the way…

More Breaking News

But these are the types of plays you need to look for and why it’s so important to understand the big picture.

One Last Thing

This is a year for learning, not for earning…

I’m not saying you can’t make any money, but it’s unlikely to be making record profits.

Everyone here needs to learn from these amazing plays we’re seeing…

And if you’re not studying the past, how are you going to become a better trader down the road if you don’t know what to look for?

I want all of you to be successful, and trading is a game of repetition….

So I apologize when I repeat myself, but I do it because this information is so critical if you want to be successful.

Who knows when the market will be as hot as 2020/2021 was…

But if you want to take advantage of it, you should start preparing today to be better prepared for when it happens.

If you are still unsure of where to start, I have some good news for you!

Be sure to sign up for this FREE trading session to get a better understanding of what’s happening in the market…

And what other millionaire traders are looking for. 

Keep studying and practicing…

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”