timothy sykes logo

Watchlists-Penny Stock Investment Strategy

The Stocks We’re Watching Right Now

Timothy SykesAvatar
Written by Timothy Sykes Reviewed by Jack Kellogg Fact-checked by Ellis Hobbs
Updated 12/2/2024 4 min read
The Stocks We’re Watching Right Now Thumbnail

It’s Tim Sykes here.

Already this week …

Senti Biosciences Inc. (NASDAQ: SNTI) spiked 680%* on Monday.

Purple Biotech Ltd. (NASDAQ: PPBT) spiked 310%* on Monday as well.

These stocks share a few things in common. Which means: We know how to identify the strongest spikers in the market …

And we can trade this volatility using popular patterns.

Take a look at one of my student’s posts on X below:

Source

Here’s another one:

Source

I can teach you how to trade these stocks.

The patterns are always the same because people are predictable during times of high stress.

We can track this price action using AI!

But to truly capitalize right now, you have to be willing to make one sacrifice …

Wake Up Early!

sun coming in on Sykes - arms out
© Millionaire Media, LLC

These stocks start to spike in premarket.

Traders who show up at 9:30 A.M. Eastern, when the market opens for regular hours … They’re leaving profits on the table.

Take a look at the spikes below from Monday on SNTI and PPBT:

SNTI chart intraday, 1-minute candles Source: StocksToTrade
PPBT chart intraday, 1-minute candles Source: StocksToTrade

Both of these spikes started at 7 A.M. … And there were textbook trade opportunities during premarket.

There were opportunities after the market opened for regular hours too …

But you only had a few minutes before the stock started to spike again.

You need to wake up early to ensure that you’re prepared to profit.

You don’t even have to find these plays on your own … StocksToTrade alerts the hottest spikers in the market when they announce news!

Here’s the alert we got for SNTI.

Here’s the alert for PPBT.

Go to bed earlier if you need to. Just make sure that you’re up in time to get situated.

The early bird gets the worm.

Our Top Stocks Right Now

Tim Sykes checking his top penny stocks list in Italy
© Millionaire Media, LLC

There are at least three sectors of stocks showing us strong spikes right now …

  • Quantum computing/AI stocks.
    • QMCO
    • PDYN
  • Drone stocks.
    • PRZO
    • UMAC
  • Biotech stocks.
    • SNTI
    • PPBT

All of these stocks spiked to insane heights in the last few weeks!

And it’s not just the fact that they’re in hot sectors …

All of these stocks announced news and have a low supply of shares in their float.

The low supply of shares will help prices spike higher when demand increases. We’re looking for anything below 10 million shares.

StocksToTrade shows that PDYN has 16 million shares. That’s close enough to 10 million!

This is an inexact science, we’re just looking for stocks that fit our framework the best.

Keep an eye on these runners for follow-up moves this week.

And keep an eye out for the next big runners! They’re right around the corner.

Cheers.

 

*Past performance does not indicate future results

How much has this post helped you?

(0 votes, average: 0 out of 5)
Leave a reply

* 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”