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Patterns To Watch

A Textbook Trade Setup — Watch For The Next One!

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Written by Timothy Sykes
Updated 1/17/2024 7 min read

Everyone wants to make money.

And for a lot of people, the stock market is an attractive opportunity.

There are real profits to be made here.

Check out my trade from Friday of last week. I posted it below …

Source: Profit.ly

I wasn’t the only one to bank … And there are more opportunities ahead!

We’re currently in the middle of a shortened trading week. Markets were closed on Monday in observance of Martin Luther King Jr. Day.

Pay attention during short trading weeks.

Part of the reason Applied UV, Inc. (NASDAQ: AUVI) spiked 110% on Friday is because traders knew that we were headed into a long weekend and a short trading week.

This hype will continue!

$AUVI could spike higher. But don’t limit yourself to one stock. We’re using the same patterns to trade the hottest runners in the market every day.

There’s still time to profit this week. And the opportunities are so ripe they’re practically falling off the tree!

I’ll explain how to find the next move …

Textbook Play

Tim Sykes holding An American Hedge Fund in Italy after creating his top penny stocks list
© Millionaire Media, LLC

We can use $AUVI as an example.

Everyone had eyes on this stock. And by everyone, I mean everyone in the Challenge chat.

Let’s take a look at some of the messages from Friday …

I had to omit certain aspects of their trades to keep the lawyers off my back. If you want to know the specifics of our setups, you should join the Challenge chat room.

You also could have watched LIVE as Jack Kellogg outlined this trade.

Jack is one of my most successful millionaire students. He’s been trading since 2017 and already has recorded $12.4 million in trading profits.

Now and then he holds live streams for other students.

There’s a screenshot of the replay below. Jack is showing traders an intraday chart RIGHT when the stock takes off.

Source: Profit.ly

We all had eyes on this because it was an obvious play.

And it started to spike during premarket hours. We had all day to track this price action.

StocksToTrade Breaking News alerted the ticker at 8:17 A.M. Eastern. More than an hour before the market opened. Take a look …

But maybe you don’t know what a perfect setup looks like.

That’s OK. I can break it down.

Perfect Setup

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The stock fits our trading process perfectly …

  • Morning news.
  • Initial spike above 20%.
  • Low float.
  • Share price below $5.
  • Large intraday trading volume.
  • Price consolidation.
  • Short squeeze setup.

And some of you were STILL distracted by lazy blue-chip movers. It blows my mind!

Friday’s Tweet illustrates my point. $AUVI followed this pattern to a T!

If you’re a small account trader, you need to focus on the setups that maximize profit potential.

Stocks like Tesla Inc. (NASDAQ: TSLA) only move a couple of percentage points per day. How am I supposed to pull 10 – 30% profits if the stock only moves 8%?

There’s NO room for error on those stocks. And for minimal gains!

Conversely, I pulled 45% from $AUVI because there was 110% on the table. Make sense?

I outline my trade in the video below …

It’s not rocket science.

But it can be difficult to get the hang of. That’s why the chat room is so important for new traders. The chat room and …

  • My live trade alerts.
  • Trading live streams.
  • Weekly video lessons.
  • Access to multiple millionaire traders.

All of this stuff is in the same place. And it’s available for small-account traders who want to profit off the market’s hottest runners.

It’s called the Trading Challenge. It already spit out over 30 millionaire students and there are more on the way.

If you want in, start with a trading livestream.

There’s no pressure to trade!

But I can’t let you wander around the market without this necessary information. 90% of traders lose because they’re not familiar with this niche.

Don’t make the same mistake!

Here’s a link to the next livestream.

No Excuses

© Millionaire Media, LLC

My students used to be on their own.

  • I record video lessons and live streams.
  • There’s a HUGE library of content for traders to sift through.

But there was still a disconnect. I can’t stand next to every trader all day long and answer questions.

If I did, there’s no doubt in my mind that I’d have more millionaire students right now.

And that’s why 2023 was such a pivotal year …

I’m always looking for new ways to speed up the learning process. And AI is the latest advancement.

Over the last few months, I’ve worked to condense my trading process into an AI that’s accessible to my students. The robot does most of the grunt work, all we have to do is follow the rules.

Understand: The rules are the most important part.

My little AI bot alerted $AUVI the morning of the spike.

There aren’t any more excuses.

My AI is accessible morning, noon, and night. Log on, drop in a ticker, and it spits out my trade plan.

Or just wait for the next alert …

How much has this post helped you?

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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”