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Why $NRDS Was A Perfect Over-The-Weekend Trade

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Written by Timothy Sykes
Updated 10/30/2023 6 min read

Confession: If you’ve been following my trades for a while, you’re likely aware that I usually avoid holding onto trades for too long.

With over two decades of trading experience, I’ve had my fair share of mishaps where I clung to a trade for longer than I should have.

But here’s the silver lining: Every mistake is a lesson in disguise!

Yesterday morning, I locked in a solid win on NerdWallet, Inc. (NASDAQ: NRDS)!

Typically, you hear me talking about dip-buying a recent runner…

But here’s the catch, I didn’t dip-buy NRDS yesterday morning, I bought it Friday before the closing bell.

Want to know how I recognized that NRDS was a play worth holding onto over the weekend?

Let me show you!

Finding The Best Opportunities

Every morning I’m scanning the market for some of the biggest percent gainers out there.

No matter what day of the week it is, it’s my starting point for every trade I make.

As you continue to grow throughout your journey, there’ll be multiple strategies you will learn, and you’ll need to adapt to what works best for you…

But most importantly, you need to understand how this market works.

Penny stocks are incredibly volatile…

And my strategy is designed to help those traders who are just starting their journey and have a small trading account.

That’s why I share all of my trades and thoughts with you every single day!

 

You can see all of my trades right here!

You don’t need to risk a lot to make a lot when it comes to trading penny stocks, that’s why I love them!

Yesterday morning, I locked in a solid win on NRDS when the market opened…

Here’s how I was able to do it.

Putting Everything Together

Just a few moments ago I mentioned that there are multiple strategies you can choose from…

But there is one specific strategy I want to share with you today…

My over-the-weekend strategy. 

With this strategy, I typically ask myself a few questions to help me gauge whether or not this strategy is truly worth it.

Some of those questions are…

  • Is it a big percent gainer?
  • Does it have news?
  • Is it holding its early morning gains?

So why are those questions so important?

Let me explain…

Question #1 – Is it a big percent gainer?

Time and time again I remind my students to focus on stocks that are spiking early in the morning, so this should be nothing new to you.

Take a look at NRDS…

Source: StocksToTrade

Here you can see that NRDS had a solid run-up early in the morning on Friday and the last thing I wanted to do was chase it.

If this was a runner earlier in the week, I’d be looking to dip-buy it…

But since it was Friday near the close, I had another plan in mind.

Question #2 – Does it have news?

If you want to spot some of the best news catalysts out there you need to have StocksToTrade Breaking News…

 

Time and time again, it has helped me nail some of my best trades in 2023! 

On Friday, NRDS was soaring higher thanks to its recent earnings report…

Which was the reason for its early morning gains in the chart above!

I do want to mention that not all positive breaking news plays will have a positive outcome…

That’s why you need to pay attention to the price action to help you determine what to do next.

Question #3 – Is it holding its early morning gains?

 

In the chart below you can see that NRDS was able to hold onto its early morning gains into the close…

Source: StocksToTrade

So why is that important?

Over the last several months, we’ve seen multiple stocks that were getting squeezed higher early in the morning thanks to these over-aggressive short sellers…

But most ended up falling back to its lows as the day went on.

Here are a few examples for you to look at to prove my point…

  •  INVO Bioscience, Inc. (NASDAQ: INVO)
  • Nuvve Holding Corp. (NASDAQ: NVVE)
  • BIO-key International, Inc. (NASDAQ: BKYI)

When it comes to applying my over-the-weekend strategy, there are multiple checkboxes you need to check before moving forward with your trade…

And looking back at the three questions I recently asked, I was able to answer ‘yes’ to every single one…

More Breaking News

So my next step was to trade it.

Trading NRDS

With this strategy you want the stock to be closing strong into the evening hours, with higher volume because that typically means buyers are in control…

And more often than not, most traders don’t see this news the day of, so FOMO kicks in.

When that happens, you have traders buying this stock during the after-hours or early Monday morning, giving you that quick spiker higher at the market open.

Here’s how I traded NRDS…

Source: StocksToTrade

I entered my trade on Friday at $9.29 and exited it at $9.65 on Monday morning for a $540 win! (Risked $13,935). 

I know there are some haters out there who will say that’s not a lot of money from an over-the-weekend trade…

And I sold my trade too quickly, which I’ll admit, I did…

But this circles back to the main point I mentioned earlier!

I’ve been burned multiple times by holding onto trades longer than I should, and I’m just simply looking to take the meat of the move.

There’s no need to be greedy here, and there will be plenty more opportunities in the days ahead!

So as we continue to head through the week, remember to focus on those big percent gainers…

And when Friday rolls around, keep an eye out for any over-the-weekend opportunities.

Trading is all about being prepared, so be sure to take advantage of these FREE trading sessions every week!

Stay safe, and if I see anything, I’ll be sure to alert 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”