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Trading Lessons

The Best Stock Spikes Right Now

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Written by Timothy Sykes Reviewed by Jack Kellogg Fact-checked by Ellis Hobbs
Updated 2/14/2025 4 min read
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Last week we saw SO MANY stock spikes.

One of my favorite setups was the spike on Dominaro Holdings Inc. (NASDAQ: DOMH) after the company announced that Donald Trump Jr. and Eric Trump joined their advisory board.

The stock ran 120%* after the news was announced.

On the DOMH chart below, every candle represents one trading minute:

DOMH chart multi-day, 1-minute candles Source: StocksToTrade

I traded this spike multiple times.

Here’s an example:

Source: Profit.ly

Anyone can trade these stocks using my patterns.

You don’t have to be a math wiz or the next Warren Buffet …

My millionaire students and I use many simple patterns to trade the hottest stocks in the market.

Here’s how:

Trading +100% Stock Spikes

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The most volatile stocks in the market can follow popular patterns because people are predictable during times of high stress.

We see most of this predictability* occur around psychologically significant numbers on the stock chart. These are known as major support and resistance levels.

Take a look at the intraday chart of DOMH below, I included the most obvious support and resistance levels.

Notice how the price reacts around these levels, from left to right:

DOMH chart intraday, 1-minute candles Source: StocksToTrade

Sometimes the price bounces off of these levels, and sometimes it bounces through the levels violently.

That’s the price action that we like to trade.

How To Build Smart Positions

On stage with the brilliant Tim Bohen
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When we find a strong stock spike, our entry position is very important.

We don’t know what the stock will do next.

All we know is how the price might react around certain levels.

So, our goal is to buy shares above solid support with the hopes of a spike higher. And we only focus on the strongest stocks to give ourselves an even larger trading edge.

My AI trading bot, XGPT knows how to follow my process on the hottest runners in the market.

It even alerted a trade on DOMH before the Trump news came out!

On the chart below, we can clearly see that XGPT was using $6 as a potential support level after it started to spike through the resistance.

On the DOMH chart, every candle represent one trading minute:

DOMH chart multi-day, 1-minute candles Source: StocksToTrade

New traders: Lean on my AI trading bot until you grow self-sufficient in the market.

There’s a science to this. Use XGPT as your tutor!

>> Get the next AI trade alert from XGPT <<

Cheers.

 

*Past performance does not indicate future results

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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”