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Why $RDHL Isn’t Done Just Yet

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Written by Timothy Sykes
Updated 11/29/2023 6 min read

Traders often fixate on the sheer number of trades they make, believing it’s the key to success.

But here’s the truth: success isn’t a numbers game; it’s about the quality of your trades.

Yesterday, I let a perfect trading opportunity slip through my fingers. No regrets. Instead, I turned it into fuel for my next move.

Preparation is the backbone of trading. Despite missing out on yesterday’s opportunity, I’m optimistic there’s a better one in the coming days.

Today, I’ll break down what my plan is to capitalize on this multiday runner as soon as the market opens.

Let’s begin!

Be Ready For The Next Opportunity

There’s something that we haven’t seen in this market for quite some time, until just recently…

And that’s seeing these penny stocks run for multiple days.

Earlier in the week, XGPT nailed RedHill Biopharma Ltd. (NASDAQ: RDHL) as it soared from nearly $1 per share to over $4…

Here’s the chart!

Source: XGPT

So many of my students are taking advantage of the opportunities we see daily…

And nothing makes me happier than seeing them find success, even when I don’t!

Most of my students have learned to become self-sufficient traders…

They don’t rely on me to tell them what to do every step of the way.

Once they started to understand the process and my trading strategy, it helped them grow as a trader and become who they are today.

Early yesterday morning, there was a perfect dip buying opportunity with RDHL…

And even though I was ready for it…

Source: Profit.ly

I missed it…

Source: Profit.ly

Now, there will be times when you’ll miss a trade, no matter how prepared you are.

I knew better not to chase it, but the reason I missed it was that I took my eye off it for a quick minute to look at another stock.

Even though I alerted traders about it, there were still plenty of them asking me if it was still worth watching…

And my answer to them was YES!

Earlier I mentioned that we’re starting to notice these multiday runners come back to life…

And if you look back at the monthly chart of RDHL, you can see that!

Source: StocksToTrade

Looking at this chart, I expect there to be plenty of opportunities left with RDHL.

Here’s why…

Understanding The Framework

Time and time again I remind students to study my 7-Step PennyStock Framework…

As it helps give you a better idea of what could happen next on these recent runners.

I numbered RDHL for you to see where it stands within my framework.

Source: StocksToTrade

Looking at the chart above, RDHL started pulling back from the $3 range, but that doesn’t mean it won’t continue to run higher because of how many over-aggressive short sellers there are!

At this point, it’s very over-extended, and looking at the chart above reminds me of Safety Shot, Inc. (NASDAQ: SHOT)

I want you to be ready for when there’s a good play to take advantage of…

More Breaking News

That’s why I’m going to dive into what I’m focusing on in the coming days, to help you learn and have a better understanding of how this strategy works. 

What I’m Focusing On

After Monday’s run-up, RDHL broke through its previous high of day (HOD) after the market closed…

Source: StocksToTrade

I want you to look at where I drew that white line…

That’s the area in which RDHL broke out and it has become a new support level for this recent runner.

Trust me when I say there are plenty of short sellers looking around to hammer this stock back into the ground…

But that’s not a reason for me to ignore it.

Right now, I’m closely watching that key support area, which I drew for you in the image above.

If RDHL goes below that level, the next area of support will be around the $2 mark, and I’ll be looking for a solid morning panic near that price mark.

When it comes to trading, nothing is ever an exact science…

And we all know eventually these short sellers will be right with their thesis.

So as we wrap up our discussion for today, here are some educational videos for you to watch to better understand my dip-buying strategy and what to look for when you continue to spot these over-extended or multiday runners in the future.

(VIDEO): How To Dip Buy With Less Stress

(VIDEO): Multi-day vs. First-Day Runners 

(VIDEO): Support and Resistance 

If you haven’t yet, don’t forget to sign up for our FREE Trading Sessions!

So many traders have thanked me for helping them better understand how the stock market works and what they can do differently to help them spot some of today’s top opportunities!

👉Click here to reserve your seat today! 👈

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”