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Trading Tips-Tim Sykes Penny Stock

Today’s Top Trade Opportunity: 10/25

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Written by Timothy Sykes Reviewed by Jack Kellogg Fact-checked by Ellis Hobbs
Updated 10/24/2024 3 min read
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Welcome traders,

There’s a science to this!

My millionaire students and I follow a specific process for wins.

And it starts with the hottest stocks …

We focus on the hottest stocks in the market because they give us a greater chance of success.

In our niche, the best spikers always have a catalyst to push share prices higher.

For example: Earlier this week I traded two earnings winners for profits.

My trade notes are below:

Source: Profit.ly

Once we find stocks that are spiking higher with a catalyst, we can trade them using my framework.

Stocks like to follow this framework because people are predictable during times of high stress. Like when they have money in a stock that’s spiking with intraday volatility …

We’re essentially trading human psychology.

Let’s look at some examples:

Here’s my position on Upwork Inc. (NASDAQ: UPWK) from earlier this week, every candle represents one trading minute …

UPWK chart intraday, 1-minute candles Source: StocksToTrade

And on La Rosa Holdings Corp. (NASDAQ: LRHC) the same day …

LRHC chart intraday, 1-minute candles Source: StocksToTrade

We can apply this process over and over on the next hottest stock in the market.

And today, Friday, there’s a very specific trade we’re watching …

There’s Still Time To Get In

My trades on UPWK and LRHC were in the morning.

But the trade that I’m watching today won’t start to set up until around 3 P.M. Eastern. You’ve got tons of time!

See, Friday’s are special because of the incoming weekend.

A volatile stock that closes on Friday could gain additional attention on Saturday and Sunday. Any weekend buy orders will pile on top of each other, resulting in a  Monday-morning spike.

Our goal is to buy on Friday before the market closes and sell into the Monday spike.

Last weekend I used this exact pattern to profit off of Firefly Neuroscience Inc. (NASDAQ: AIFF). You can see my trade notes below:

Source: Profit.ly

I entered that trade at 3:39 P.M. Eastern.

You’ve got time …

>> Look For THIS Price Action On Today’s Hottest Stocks <<

Not sure which stocks are running right now??

Browse my recent posts on X, lol. I’m always posting the hottest stocks!

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.
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* 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”