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Watchlists-Penny Stock Investment Strategy

Stocks To Watch This Week

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Written by Timothy Sykes
Updated 7/5/2024 3 min read

Happy Monday!

There’s a whole week full of profit opportunities in front of us.

Last week we watched SO MANY runners:

  • Roadzen Inc. (NASDAQ: RDZN) spiked 100%*.
  • Ocean Power Technologies Inc. (AMEX: OPTT) spiked 190%*.
  • Senti Biosciences Inc. (NASDAQ: SNTI) spiked 120%*.
  • Annovis Bio Inc. (AMEX: ANVS) spiked 130%*.
  • Koss Corporation (NASDAQ: KOSS) spiked 180%*.

And this week we’ll see all new spikers. But not all spikes are created equal …

From the thousands of stocks moving every day, there are only a handful that give us true opportunities in the market.

Don’t worry, I’m here to show you what a GOOD stock looks like.

This week, only pay attention to these kinds of stocks:

What Makes A Spiker:

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Before we get into the details, you have to understand: This is an inexact science.

Every stock will look a little different. With experience, a trader can recognize the important commonalities.

This is what we look for every day in the market, a stock that:

  • Has a low share price, usually under $5.
  • Has a low float, below 10 million shares.
  • Is spiking +20% on the day.
  • Is trading at least 1 million shares of volume.
  • Has a news article or catalyst to push the price higher.
  • Has a history of spiking.

It seems like a lot of factors.

But when you consider that there are thousands of stocks moving every day, this list of factors whittles down that list to a handful of legitimate trade setups.

It’s important to keep in mind that this is an inexact science because sometimes we see solid setups from stocks just outside our factors.

For example: Ocean Power Technologies Inc. (AMEX: OPTT) was a solid trade setup last week.

Take a look at the spike below:

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

The float shows there are 55 million shares outstanding. That’s technically above our goal of 10 million shares or fewer.

But comparatively, it’s a far cry from much larger stocks in the market. Take Tesla Inc. (NASDAQ: TSLA) for example. That stock has a float of 2.5 billion shares.

You don’t have to guess whether the stock you’re watching is a good setup … These days, my newest students are using AI to track the hottest runners in the market.

The AI follows the tested framework that my millionaire students and I use to profit.

Use every tool at your disposal right now!

This bull market momentum won’t last forever.

It’s not like Jack Kellogg profits $100,000 all the time … This 2024 market is built DIFFERENT.

See his trade from July 1 below:

Source: Profit.ly

This is where Jack posts his top trade setups.

It’s time to hit the ground running!

Cheers.

 

*Past performance does not indicate future results


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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. 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”