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Was $LIFW The Easiest Trade of The Year?

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Written by Timothy Sykes
Updated 10/26/2023 6 min read

Yesterday, I held a LIVE trading event in Las Vegas with hundreds of traders…

And before I headed downstairs, I got an alert about a trading opportunity that was too good to miss!

You may often hear me say to come out of retirement when a play is so good you would feel guilty missing it…

Well, that’s exactly what happened yesterday!

Today, I’ll be breaking down why I would’ve felt so guilty ignoring this trade…

Plus how I anticipated this stock to react the same way as another trade I made earlier in the week.

Let’s dive in!

Coming Out Of Retirement

I keep getting asked how I’m able to find all the trades that I do…

Listen, I don’t do anything fancy and all of you can find the same opportunities as me!

All I do is scan the market for some of the biggest percent gainers, use StocksToTrade Breaking News…

And when I spot a stock soaring higher, I decide what strategy fits best.

I get it, it sounds easier said than done…

But the more you practice and study, the easier it will become for you to spot some of the best opportunities in ANY market!

There’s a lot of opportunity out there for us right now as traders…

And even though we may not spot the same opportunities as each other, you still need to know how to trade them.

To be honest, I don’t want you copying my trades…

I want you to learn from them and I want you to understand how I spotted them, what my thought process was, and how I traded them so you can do it on your own down the road…

That’s why today I’m going to show you how I spotted this early morning winner yesterday before I headed down to my conference in Las Vegas.

Spotting The Best Plays

Yesterday morning as I was in my hotel room, I got an alert from StocksToTrade Breaking News on MSP Recovery, Inc. (NASDAQ: LIFW)…

Here it is.

Source: StocksToTrade Breaking News

Here’s how the chart performed after the news broke.

Source: StocksToTrade Breaking News

Shortly after the alert came out, the stock started to take off.

LIFW went from $1.11 to $1.60 for a 44% gain!

Now remember, you don’t want to buy a stock once you see the alert immediately, you want to watch how the stock reacts overall.

Let’s take a look at the bigger picture…

Source: StocksToTrade

This isn’t the first time I traded LIFW, I traded it back on its initial squeeze in September.

Knowing how LIFW had a history of spiking, and now we factor in a positive news catalyst with a probably First Green Day, I knew I had to take a chance with it…

Or I’d feel guilty missing out.

Source: StocksToTrade

I entered my trade at $1.19 and exited shortly after at $1.33 for an 11.76% win! (Risked $3,570).

More Breaking News

This was a solid start to my day, but there’s something else I remembered from earlier in the week that made me feel more confident about buying LIFW yesterday morning that I need to share with you…

Staying Aware Of What’s Happening

Way too many newbies don’t like to know what’s happening in the overall market and they tend to forget about previous trade.

I like to remember every single trade I made, and even the ones I missed out on!

Earlier in the week I traded Nuvve Holding Corp. (NASDAQ: NVVE) here’s the chart…

Source: StocksToTrade

You may ask why this matters…

Well, NVVE had the same insider buying news that LIFW had and they both reacted very similarly.

They both spiked higher on the news, then started to fade.

These aren’t the types of plays you should just buy and hold…

And I felt more confident that LIFW would spike from this news and fade just like NVVE did throughout the day…

Which is why I took the meat of the move and got out within a few minutes.

I want all of you to fully understand how you can capitalize on these opportunities…

That’s why I encourage you to attend these FREE trading sessions every week.

If you want to be successful, you need to understand what’s happening in the market and realize that patterns do repeat…

So keep practicing, focus on those big percent gainers, and most importantly, stay safe!

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”