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Trading Lessons

6 Trading Lessons This Summer:

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Written by Timothy Sykes
Updated 8/19/2024 9 min read

You need to pay attention right now!

2022 and 2023 were slower years for trading … But in 2024 we’re seeing MASSIVE opportunities to profit.

For example, one of my most successful students, Jack Kellogg, landed a whopping $375k profit from one trade on Serve Robotics Inc. (NASDAQ: SERV).

Take a look below:

Source: Profit.ly

Now, understand that Jack’s trade on SERV is an extreme example.

Don’t expect to make $300k on your first trade … At this point, Jack is a seasoned veteran. He joined my Challenge back in 2017.

But Jack and the rest of my millionaire students are perfect examples that there IS a process for success in the stock market.

And during this 2024 summer, the opportunities are larger than usual.

Here’s how you can capitalize right now!

Summer Trading Lessons

Summer’s aren’t usually hot like this …

In the last 90 days, I’ve grown my trading account by $103,053.

To contrast … During all of 2023 I grew my trading account by $82,304.

In the last 90 days in 2024, during a traditionally slow period of the market, I’ve profited more than all of 2023.

And compared to heavy weights like Jack Kellogg, I trade with a smaller account.

You don’t need a ton of cash to start. But there ARE some rules that you DO need to follow.

Take it from me, I’ve been in the market over two decades and I’ve mentored over 30 traders before they crossed the $1 million milestone.

This is what you need to know for more summer trade setups:

#1: Pay Attention When It’s Hot

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We haven’t seen a market like this for years.

The last time we experienced bullish volatility like this was in 2020 and 2021.

I don’t know how long the volatility will last! We need to take advantage of these setups while they’re here.

For an example of the opportunities that we’re working with, let’s take another look at SERV, Jack’s biggest trade of the year.

This stock spiked 810%* in less than two weeks. From less than $3 per share to more than $20 …

Take a look at the chart below, every candle represents 15 minutes:

SERV chart multi-day, 15-minute candles Source: StocksToTrade

And this isn’t the only runner we’re watching …

  • Starting August 15, Cingulate Inc. (NASDAQ: CING) spiked 1,000%*.
  • Yesterday, on August 19, Alzamend Neuro Inc. (NASDAQ: ALZN) spiked 640%*.

Pay attention right now! These opportunities are on another level.

#2: Focus On What Works

We’re not trading spikers at random.

There’s a specific process that my millionaire students and I use for success.

The most volatile stocks in the market can follow this trading framework because people are predictable during times of high stress. Like when they’ve got a few thousand dollars in a stock spiking +100%.

But for new traders, memorizing the whole framework AND applying it is a big task.

Instead, you can focus on one or two profit angles that work best right now.

For new traders, I suggest a setup like my weekend pattern …

  • You only have to trade it once or twice a week.
  • It sets up at the same time every week.
  • There’s a perfect tutorial video to help traders understand the right price action from the wrong price action.

Below I included some recent examples of trades that I made using this pattern:

Source: Profit.ly
Source: Profit.ly

Watch my pattern video to prepare for this weekend’s upcoming setups:

I’ve also been trading the panic dip-buy pattern quite a bit this summer. But it’s not what I would consider a ‘beginner pattern’.

Focus on what works, and try not to overwhelm yourself.

#3: Use The Right Tools

Trading stocks is a lot like going to war:

The side with the best tools usually wins.

That’s partly why Wall Street has always outperformed individual traders.

They have teams of math wizards to build trading formulas. They have high frequency trading bots. They build and utilize black boxes to hide massive trades and capitalize on market inefficiencies.

Ever since I started trading, I realized the disadvantage of being a small-account trader.

That’s partly why I trade small-cap stocks: Wall Street doesn’t bother with small-account liquidity. There’s less competition in our niche.

But I’ve also worked to build tools that help me level the playing field.

One of the most important tools that I use right now is the Breaking News service from StocksToTrade.

Breaking News sifts through the hottest news every day and alerts traders of potential spikes BEFORE the chart turns vertical.

Without Breaking News, I would have missed out on A LOT of trades this year.

Here are some recent examples of runners that Breaking News alerted:

  • Richtech Robotics Inc. (NASDAQ: RR)
  • Nano Nuclear Energy Inc (NASDAQ: NNE)
  • Greenlane Holdings Inc. (NASDAQ: GNLN)
  • Lumen Technologies Inc. (NYSE: LUMN)

It’s not about having the most expensive trading tools, it’s about having the RIGHT tools for your trading process.

Breaking News sends a lot of trading opportunities my way, and that’s made it an integral part of my process.

>> Get the next Breaking News alert! <<

#4. Everybody Loses

Nobody’s perfect.

Make sure you have the right mindset when you’re trading these stocks …

I can never impose my will on the stock market. All I can do is focus on the best setups and protect my account from the worst case scenario.

Anything can happen in the market at any time in the market. And chances are, you’ll lose a few trades here and there.

I only win 76% of the time.

But my wins outweigh my losses in number and size … That’s how I stay on top.

Don’t be afraid to cut a loss if the chart stops following your trade plan. That’s good discipline.

Not all losses are bad trades.

#5. Follow The Rules

Even during hot markets, we have to follow the rules.

There are more opportunities to profit right now. But it doesn’t matter how much money you make if you give it all away in one trade.

Don’t get greedy! Follow the process and trust in the long-term trade journey.

My biggest loss this year was on Comtech Telecommunications Corp. (NASDAQ: CMTL). Take a look below:

Source: Profit.ly

My laptop got soaked, I was working with spotty WiFi, I added shares to an already sketchy loss when I should have just cut it.

I broke my rules, and as a direct result, I took my biggest loss of the year.

Make a trading plan and stick to it! Even if that means taking a small loss.

#6. None Of Us Are The Best Case Scenario

My students and I are taking the meat of the move.

Sometimes it’s only a few percentage points out of the +100% move.

For example, Jack’s best trade of the year, his $375k profit … That was a 95% profit (outstanding) on a 810%* move.

Here’s my point: Even Jack’s best trade of the year was far from ‘perfect’.

Stop trying to trade perfectly. And stop thinking that you NEED to be perfect to trade.

  • Make a trade plan.
  • Get in.
  • Get out.

I know, trading success comes with a lot of pressure. Even successful traders can get clowned online for missing a majority of the move.

It’s happened to me … Lol.

But sketchy promoters can ride most of the move because they’re literally engineering the spike. You’ve got to tune out the toxicity.

As small-account traders, it’s best for us to focus on the meat of the move.

Take what you can get and get out!

Then we move to the next spike …

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”