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Is This Volatility Causing You To Reconsider Your Strategies?

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Written by Timothy Sykes
Updated 10/20/2023 6 min read

A lot of traders keep asking me if the recent events that are happening around the world are impacting my trading strategy…

And my answer is no.

Over the last 25 years, I’ve learned to adapt based on what the market gives me…

And those who refuse to do so are the ones who typically fail.

I hate to be harsh, but it’s true, and I don’t want anyone here to fall victim to the wrath of the market…

That’s why today, I’m going to share with you three things that my most successful millionaire students share… 

Are you ready?

Motivation

Let me ask you a quick question…

How badly do you want to be my next millionaire student? 

I hope all of you said, “me”!

But unfortunately, I have to hit you with some truth…

99% of traders fail, not because they want to, it’s because they think trading is easier than it is.

They don’t study, they randomly buy stocks based on what they hear…

They simply don’t have any clue what to do and they put forth zero effort to understand what’s happening.

I didn’t profit over $7.5 million simply by luck…

I did it through countless hours of studying, researching, and practicing different strategies…

And every day I share with you what I see that’s happening in the market so you can better understand and learn what’s happening.

Many of my students who joined my challenge are thirsty for success and failures are not an option.

I want all of you to be successful, but you need to understand that it’s going to be a marathon and not a sprint…

So be sure to take advantage of these FREE trading sessions to get a better understanding of what’s happening in the market.

Consistency

How consistent are you with your trades?

Are you risking more than you should?

Right now in this market, I wouldn’t be overly aggressive with any trade…

And it’s perfectly fine to have small losses along the way and I’ll show you why that is in just a minute.

Every day we’re seeing a ton of over-aggressive short sellers out there…

And I plan to take advantage of them every chance I get, and so do my students.

On Friday, I made a trade where I lost twice…

But that’s ok, because I’m being consistent with my trades and I’m still up over $7,000 this month.

Take a look at HUB Cyber Security Ltd. (NASDAQ: HUBC)

Source: StocksToTrade

A few weeks ago, HUBC spiked roughly $0.20 up to $0.80. That’s a 300% move!

On Friday, HUBC was spiking again and I wanted to see if I could buy the dip…

Take a look at this chart.

Source: StocksToTrade

HUBC was batted down from $0.80 during the premarket hours…

As soon as the market opened, HUBC bounced off of the $0.65 mark again, the same thing happened earlier in the morning.

When I saw HUBC bounce and retest the $0.80 mark, I was waiting for it to fall back down and bounce off that same level.

In my first dip buy attempt, I bought HUBC at $0.70 and sold it at $0.675 for a -3.57% loss.  (Risked $5,250).

My second dip buy attempt was at $0.603 and sold it at $0.595 for a -1.33% loss.  (Risked $11,758.50).

My strategy was right, but unfortunately, not every trade will work out the way you intended it to.

I was fine with locking in another small loss here, but seeing the overall market selling off, I knew I needed to focus on the best dip-buying plays…

And this wasn’t one of them.

It’s fine to make a speculative trade, it helps you become more familiar with the process…

More Breaking News

But remember, never hold and hope!

Preparation

My strategy is designed for traders who are just starting off and have a small trading account…

And a lot of the time I get asked how I have a 76.49% win rate.

There is a lot that goes into my trading strategy, and unfortunately, I can’t go into all the details with you today…

But one of the biggest reasons is being prepared.

Every day my students and I scan the market for some of the biggest percent gainers…

We use StocksToTrade Breaking News…

We talk about what stocks have the biggest potential in chat…

Being prepared helps all of us take advantage of what’s right in front of us…

And that’s why I continue to harp on all of you to be prepared!

So I ask you today…

Will you be prepared to take advantage of the best opportunities this week?

Be sure to tune into this week’s FREE trading session…

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”