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Patterns To Watch

3 Ways To Take Advantage of The Hottest Pattern 🔥

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Written by Timothy Sykes
Updated 9/20/2023 5 min read

While the overall market has been an absolute snooze fest the last few weeks…

Traders like myself have been feasting.

All thanks to a wild new stock pattern.

The kind that took CCG from $12 to $200.

And AVGR from $4.41 to $15.25.

Today I’ll tell you how I’ve been trading this crazy pattern and the three ways to take advantage of it.


This Is Absolutely Wild

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Trading is all about adapting. If you want to make money, then you have to follow the money.

That means you have to remove your biases. Cause the market for sure doesn’t care what you think.

And right now…there’s nothing more profitable than short squeeze plays.

There’s too many short sellers out there…and too many shady brokers giving away easy borrows.

And because it’s such a crowded strategy…we are seeing one epic short squeeze after another.

I’m going to share with you the three things you must be on the lookout for to take advantage of this phenomenon.


#1 Focus On Short Squeezes in Weak Companies.

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We live in such a bizarre world. The weaker…the crappier the company…the more shorts that pile in…the bigger the squeezes get.

Trading is all about adapting.

And right now, the worst companies are the best trade.

What I’m focusing on is the largest percentage and volume gainers.

We’re seeing explosive moves in these stocks as aggressive shorts get sucked in and then scramble to cover their positions.

#2 Prioritize Risk Management

Just because shorts are easily getting squeezed doesn’t mean all longs will make money.

You need to have a trading plan.

I’m looking at these plays when there is a dip buy opportunity.

More importantly, I’m looking to make money off quick spike ups.

I understand that some of these stocks have triple-digit gain runups.

But I also know that these are the worst of the worst.

At any moment they can do an offering and tank the stock.

So while i do see massive opportunity, I’m strategic with my entries, and I’m focused on my risk.

That’s where the shorts fail miserably.

They are absolutely right in shorting these crappy stocks.

But most of them have no concept of risk management. And that’s why they shouldn’t be shorting.

Not only does your timing need to be perfect, you also need deep pockets to ride a drawdown.

It’s hard to get out of a trade when you are fundamentally right…and that’s why we’re hearing so many horror stories about shorts getting blown out.

If you can’t manage risk then your strategy sucks.

#3 Be Flexible and Open Minded

If you follow the blog then you know I love dip buying at or near the opening bell.

However, I’ve now looked at dip buying opportunities at various times throughout the day.

In other words, keep an open mind and don’t always be so rigid.

I know I talk a lot of smack about short sellers, but I used to be one of them. The reason why I’m not anymore is because I recognized the risk vs. reward shift.

Trading is all about adapting.

That’s the only reason why I’ve been able to stay consistently profitable after 20 years in this game.

You have to flow with the market, and go with where the trends are.

Right now there are so many opportunities with these short squeezes.

But you still need to have a trading plan, you still need to be smart, and you must keep an open mind.

What’s The Next Big Short Squeeze

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I pride myself on being a real trader with real results.

But more importantly, I pride myself on being a top coach.

With more than 30 of my students now millionaire traders, there’s a lot you can learn from us.

And now you have a front row seat. 

Everyday this week we’re hosting live training sessions.

They are spread out throughout the day, so you should be able to find a slot that fits your schedule.

It’s up to you to take the next step…no excuses!


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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”