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Mentor Updates

Millionaire Mentor Update: Summer Trading Madness!

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Written by Timothy Sykes
Updated 4/18/2022 18 min read

Summer trading is supposed to be boring and slow. Enter the summer of 2020 with the coronavirus pandemic. Then add stimulus checks and uneducated newbie traders to the mix.

What do you get?

Summer trading has taken on a whole new meaning. I can’t keep up with all the opportunities. The past three weeks I’ve averaged roughly $70,000 per week in profits.**

I donate 100% of my trading profits to charity. And right now there’s a huge crisis you need to know about. This is where all my June profits are going…

Urgent: Help Save the Children of Yemen

Warning! Graphic Images: Some people may find the following content disturbing or offensive.

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⚠️WARNING: GRAPHIC IMAGES⚠️ Repost from @karmagawa WE MUST HELP THE CHILDREN OF YEMEN WHO ARE DYING EVERY DAY NOW! Click the link in the @karmagawa bio to see the fundraiser we started with the initial goal of raising $200,000 to help the millions of children in Yemen who urgently need food, water, medicine & shelter because right now one child is dying every 10 minutes every day right now! No child deserves to starve to death or be in this much pain so all donations, great and small, are most appreciated and the money will be donated to two hardworking charities already on the ground: Unicef Yemen and Save The Children Yemen. Even if you can’t donate much, sharing our new fundraiser with your followers helps tremendously too as we must all work together to spread awareness about this crisis all over social media to raise desperately needed funds to prevent any more children from dying RIGHT NOW! Please also share this post with your followers and tag people, celebrities, influencers & news media who need to see this too because sadly not enough people are talking about this crisis and if we continue to do nothing then many more innocent children will die in the next few week/months, SO LET’S GET HELP FOR THESE CHILDREN RIGHT NOW! #yemencrisis #saveyemen #prayforyemen #yemen #karmagawa

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At Karmagawa, we’re raising money to help the people of Yemen. They’re in desperate need of food, water, shelter, and medicine. The country’s civil war, combined with the coronavirus pandemic, has taken a huge toll. Children are dying of starvation.

Our goal is to raise $500,000. So far we’ve raised $303,391 — which is a great start. It’s crazy and it’s awesome. We raised over six figures in 36 hours. We’re more than 60% of the way to our goal.

But it’s only a start…

The war in Yemen isn’t ending. And now coronavirus is spreading fast. UNICEF spokesperson Marixie Mercado said they need $30 million by the end of June. That’s just to keep the water, sanitation, and hygiene infrastructure going. Unfortunately, this scenario will repeat in developing nations and war-ravaged countries.

So a few hundred thousand dollars is a good start. But they need millions by the end of the month. Even if they get millions, there will be more problems in July and August.

The money we raise is going to three amazing charities already on the ground in Yemen — Unicef Yemen, Save the Children Yemen, and Doctors Without Borders.

Please donate here:

Please Help Yemen Any Way You Can, This Is Tragic — a fundraiser by Karmagawa.

It’s kinda crazy that in 2020 children are starving to death. Most people aren’t aware of what’s going on in Yemen. So very few people do anything about it.

But what’s crazier is we’re engaged in this…

Military vs. Healthcare Spending Crisis

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The amount of money spent on the military versus what’s spent on healthcare is outrageous. Our country is secure militarily. But people are dying due to famine and a lack of medical care. Especially in developing countries. And especially with coronavirus.

With coronavirus … we need a vaccine. The only positive thing about this pandemic is that we’re spending more on health and medicine. But it’s a wake-up call as the world realizes the consequences of years of a lack of funding.

Which is why we need you to…

So please donate. Any amount helps. Whatever you can find in your heart to give, give today. Please support Karmagawa’s ongoing mission to make the world a better place. Read this post on the Karmagawa blog. Then share it.

Then share the fundraiser, too. This is the true power of social media. At Karmagawa, we’re trying to create a culture where people give and then share on social. Not to get people to brag about giving — to help set an example for others.

Again, this is the power of social media. But you gotta take action. So give today. And if you can’t give, then share. It only takes one person sharing with the right person to make it go viral. You might be the one to trigger a tsunami of giving.

OK, let’s get to some…

Summer Trading Questions From Students

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The first question comes from a Market Mastery 2020 live trading webinar attendee. Every five weeks or so I host an all-day live trading webinar and Q&A.

(Get on the list for the next Market Mastery 2020 session here.)

The most recent was on Friday, June 12. It was summer trading at its best. Students watched as I had to adapt to get out of the trade in question…

“When you tried to exit SSFT on Friday morning, there was trouble with E-Trade. Your first order was 24 cents — which you changed to 21 cents when the order wasn’t getting filled. Was there a reason you chose 21 cents since it was a near 50% difference in profit?”

Let’s look at the stock and the trade and then I’ll answer the question. But first…

Summer Trading With StocksToTrade Breaking News Chat

A lot of people ask me where I get breaking news so fast. Use the StocksToTrade Breaking News Chat tool. It’s helped me have my best month of trading in the past decade …  over $262,434 in profits in the past 30 days. That’s crazy.

But it’s even crazier not to use it … because my SSFT trades all started with the Breaking News Chat tool.

Here’s what Profit.ly user Dee8988 has to say about Breaking News Chat…

12:19 PM Dee8988: “Really the STT Breaking news it’s your eyes on the market, I really love it.”

Use StocksToTrade … and add Breaking News Chat to your subscription. Need more information? Read about the best tool to get penny stock breaking news here.

Back to SSFT…

Sonasoft Corp. (OTCQB: SSFT)

Sonasoft went full supernova on June 11. The catalyst was this SEC filing announcing an agreement with Google (NASDAQ: GOOGL). The 8-K filing says Sonasoft “will be involved in the development of services and products for Google Cloud Learning Systems.”

Check out the SSFT chart from June 11–12. I noted two SSFT trades:

SSFT stock price spike
SSFT chart: June 11–12, 1-minute candle, breaking news play, FGD play — courtesy of StocksToTrade.com

The reason I mention the first trade is it was my biggest single trade in a while. As you can see on the chart, the stock was already spiking. Some students were saying “Tim, why are you chasing?” As if a 20-cent stock gets a deal with Google every day.

It blows my mind more people don’t know what a solid setup looks like. I locked in safe profits, selling for a $16,975 profit.**

(**My results are not typical. I have exceptional knowledge and skills developed over time. Most traders lose money and trading is risky. Do your due diligence and never risk more than you can afford.)

The trade mentioned in the question is the other trade on the chart. It was a beautiful…

OTC First Green Day Setup

Here’s how it happened…

The entire market was selling off. It was almost like what I’d normally think of with summer trading. Based on experience, I thought Sonasoft would issue a press release about the Google deal. If not that day, then the next day.

So I bought the dip thinking it would spike into the close and/or gap up overnight. When there was no press release, I trimmed my position and locked in profits. The rest I held for a first green day overnight play.

On Friday morning, I tried to sell right at the open into a 20% gap up. But E-Trade was having issues. (Find out why I use these brokers here.) Still, it was a solid overnight profit. And as it turns out, most of my shares sold closer to my original limit order than 21 cents. It was a solid $6,705 profit.**

The key thing to remember is…

A Profit Is Still a Profit

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I don’t look at it like “Oh, my profit just got reduced by 50%.” I care more about what the stock is gonna do next. Yes, I put targets on my trades. But I don’t necessarily get them.

So when the sell order didn’t look like it was going through, I just tried to get out at any price. Sometimes that happens. Especially with fast-moving stocks.

I tell my students to focus on the process more than whether they win or lose. The thing about this trade is, I tried to sell at the open. My process was solid. My thesis was solid. Under the circumstances, I traded well. And that’s more important than the slippage.

One final note on SSFT … I only showed two of my seven SSFT trades on June 11–12. If you add up all my SSFT profits it comes to $33,649.** It’s one of my best trades in quite a while.

(**My results are not typical. I have exceptional knowledge and skills developed over time. Most traders lose money and trading is risky. Do your due diligence and never risk more than you can afford.)

Next question…

“Tim, volatility is off the charts. It almost feels safer watching than trading. At the same time, I don’t want to miss out! How can I take advantage of the volatility while minimizing risk?”

First, if this volatility is scaring you, it’s time to watch (or rewatch) my “Volatility Survival Guide.” The reason I created it was to help you through this crazy time. This isn’t normal summer trading. This isn’t normal trading period. The closest thing to it is holiday trading.

Get No Cost Access to “The Volatility Survival Guide” Here 


Trade these stocks. Get used to the volatility. Don’t let FOMO get in the way of your education.

But also understand you can control your position size. It’s so much better than just watching. Buy 100 shares … or 200 shares .. or paper trade on StocksToTrade.

People seem to forget that. They’re so scared about trading … they don’t realize if you risk $10 on a trade it doesn’t really matter. Understand you can modulate your position size.

Here’s an example…

Modulate to Hit the Moving Target

I’ve been modulating with bigger position sizes because I see so many opportunities. But you can also pull back. And again, you can paper trade. You can just watch if you want … it’s all part of your education.

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Even someone like me who’s been trading for 20+ years still modulates. Sometimes in hotter markets, I’m more aggressive. In colder markets … I’m less aggressive. Not because I’m scared, but because I’m trying to get in tune with the market.

Remember, trading is kinda like a moving target. And you’re trying to move in rhythm with the moving target.

Let’s wrap this up with the…

Trading Lesson of the Week

This is a ‘fire at will’ market. There are so many plays every day I can’t keep up. So the big lesson is…

Enjoy it. Enjoy all the lessons the market is giving you. And enjoy all the trades and opportunities both long and short. Summer trading may never be like this again. It’s the best market in years.

Join the Trading Challenge

tim sykes challenge students
Pictured Left to Right: John Papa, Jack Kellogg, Dominic Mastromatteo, Timothy Sykes, Don Mastromatteo, Matthew Monaco, Kyle Williams

How do my top students learn to take advantage of hot stocks and hot markets? It’s really simple — but not easy. Ready?

They study their butts off. Period.

What do they study? Everything. Every video lesson, archived webinar, DVD, and manual that Trading Challenge students get. They do it all. Obsessively. Are you ready? Don’t even bother to apply unless you’re willing to do whatever it takes. Because you’ll have to dedicate hours to the grind … at first.

But the potential freedom that comes after one year, two years, three years… there’s nothing like it.

Here’s what Profit.ly user @kicsaknn had to say on Friday:

11:43 AM kicsaknn → timothysykes [private]: “Thank you for pulling this Challenge together. It is unbelievable how much us students can learn with not only all the material, but also so may Traders giving back, helping others. GREAT community we have here, and you started it all. thankful for you, your few top students and your team. in this Challenge for a lifetime. #marathon”

I love that mindset. It’s a marathon and not a sprint. It’s my honor and privilege to be the mentor to you that I never had.

Want to work with me? Apply for the Trading Challenge now.

Millionaire Mentor Market Wrap

What a crazy month so far. For me, it’s my best month in years. So far I’ve made $222,605 in profits in June.

It’s been a great month for trading and a great month for teaching. I’m so proud of my students who are learning and profiting.

But I’m most proud of the fact that we’re raising money to help in Yemen. I’m donating my profits this month to the three charities mentioned above. I hope you get involved. Financial freedom is awesome. But it’s even more awesome to give back.

What do you think of this crazy summer trading? Comment below, I love to hear from all my readers!

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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”