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Trading Lessons

The Right Stocks To Trade Today

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Written by Timothy Sykes
Reviewed by Jack Kellogg Fact-checked by Ben Sturgill
Updated 8/27/2024 4 min read

There have already been solid profit opportunities for traders in our niche this week.

There will be more!

And yet … This is historically the slowest week of the year for the market.

See my post on X below:

This 2024 market is different!

Usually the summer months are slow for trading. But all summer we’ve seen A TON of profitable volatility.

Yesterday we watched two stocks shoot higher after announcing obvious catalysts. They were perfect setups!

But there are thousands of stocks moving everyday. And probably hundreds that announce some kind of news.

How are we supposed to know which stocks to watch?

Don’t worry, I can teach you that …

The Next Spiker

Yesterday’s runners are listed below.

We’re using these as recent examples:

  • VOXX International Corporation (NASDAQ: VOXX) spiked 90% on Monday.
  • N2OFF Inc. (NASDAQ: NITO) spiked 120%*.

First of all, both of these stocks are low priced and were trading with a low share count (anything near or lower than 10 million shares).

But what causes these stocks to spike so high is the news catalyst.

Without any news, there isn’t fuel for the rocket.

On Tuesday we got trade alerts for VOXX and NITO that detailed their respective news catalysts.

Take a look at the charts below, every candle represents one trading minute:

VOXX intraday chart, 1-minute candles Source: StocksToTrade
NITO intraday chart, 1-minute candles Source: StocksToTrade

Our Breaking News alert system ensures that we have eyes on the hottest runners with bullish catalysts.

And we get the alert BEFORE the price goes vertical.

Here’s where you can find the next Breaking News alerts!

Even though it’s the slowest week of the year … We’re still seeing MASSIVE trade setups.

At the very least, grow familiar with this system before the Holiday season. And before the FED lowers interest rates …

The last few months of the year WILL be volatile. Traders who are prepared are free to take profits.

The Patterns We Use To Trade

Finding a hot stock and then trading it for a profit are two different things.

  • We can’t profit on a hot stock if we don’t know the patterns.
  • We can’t use our patterns on the wrong stocks.

As traders, we need to:

  • Find the right stock.
  • Trade the right pattern.

I already showed you how to find the correct stocks, use Breaking News until you grow more self-sufficient.

When it comes to trading patterns, this is the framework that my millionaire students and I use to trade.

Stocks can follow these patterns because people are predictable during times of high stress. Like when they have a few thousand dollars in a stock that’s spiking +100%.

We’re essentially trading human psychology as it manifests on the hottest stocks.

And since people have always behaved similarly when under stress, these patterns aren’t likely to change.

I’ve been trading with the same framework since I started during the dot com boom over 20 years ago.

Study the framework and start looking for patterns on the Breaking News alerts.

There will be more opportunities to trade this week. And don’t even get me started about the rest of the year …

Cheers.

 

*Past performance does not indicate future results

 


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Author card Timothy Sykes picture

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. Read More

* 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”