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Trading Recap

Third Trade In A Row: Learn This Pattern!

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Written by Timothy Sykes
Reviewed by Jack Kellogg Fact-checked by Ellis Hobbs
Updated 9/23/2024 4 min read

Welcome traders,

You NEED to understand my weekend-trade pattern in this 2024 market.

Last weekend marked the third trade in a row that I profited from a stock that spiked Friday to Monday.

The first was Laser Photonics Corporation (NASDAQ: LASE). Here are my trade notes:

Source: Profit.ly

The second was Azul S.A. (NYSE: AZUL):

Source: Profit.ly

And last weekend was Verb Technology Company Inc. (NASDAQ: VERB):

Source: Profit.ly

You don’t need to trade all day every day.

One good trade a week can make all the difference for your account!

Learn my weekend pattern before trading starts this Friday.

Plus, last weekend’s runner, VERB, is set to spike higher this week …

Here Are All The Details:

The weekend strategy is a solid setup for new traders.

But there are more profit opportunities this week for traders who have some time.

For example, I’m still watching VERB right now. The company has a history of pumping its stock.

Take a look at the monthly chart below, every candle represents one trading day:

VERB chart multi-month, 1-day candles Source: StocksToTrade

Past spikers can spike again!

The stock won’t spike the exact same way as last time, but we can look at former spikes to get an idea of possible price action

Notice that the past spikes on VERB only lasted one trading day … Already I’m wary that VERB won’t be able to spike without another definitive promotion.

We have to think practically about these stocks! It’s possible that this fades like the last two spikes.

With that said, it’s also possible we see another promotion highlighting the company’s TV show …

The first episode aired last week. The show features stars like UFC fighter Micahel Chandler and actor James Maslow.

It’s called ‘Go Fund Yourself!’. And from what I gather, it’s an investment show that could appeal to a similar audience as the popular show ‘Shark Tank’.

A second episode will introduce the opportunity to build more hype around this stock.

But … To truly capitalize on a secondary spike, we have to determine areas of support and resistance from the most recent spike.

Intraday Levels

On Monday, prices fell below two major levels from Friday.

On the chart below we can see areas of resistance at $0.065 and $0.07. These are levels that VERB bumped up against frequently on Friday.

Take a look below, every candle represents one trading minute:

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

Every trader who bought above these levels, they’re potential bagholders right now.

These people are hurting to let go of their shares. Even if it’s a break-even trade. Which means the stock will face significant bearish price action when it hits these levels.

For a truly bullish trade on this stock: I want to see another press release and I want the price to AT LEAST spike above $0.065. Above $0.07 would be most ideal!

Set an alert in StocksToTrade, you’ll get a notification if the price moves above these levels.

And for anyone who struggles with trade plans, use my AI trading bot!

The patterns that I use to trade are always the same. It was only a matter of time until the AI caught on …

Enter the VERB ticker into the AI and it will spit out a trade plan as if you asked me directly.

Look alive this week! The 2024 volatility isn’t over yet.

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”