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Trading Lessons

How To Trade Like A Millionaire

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Written by Timothy Sykes
Updated 2/27/2024 4 min read

I’m minting new millionaire students at a faster rate than ever!

And it’s because my top students give back …

For example: Jack Kellogg held a LIVE webinar on Thursday, February 22 right after NVIDIA Corporation (NASDAQ: NVDA) broke to new highs with a bullish earnings report.

Here’s a chart of NVDA with the earnings gap:

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

The live stream was recorded and sent to Challenge students over the weekend on February 24 …

In the stream, Jack mentioned a HUGE potential play on a low-priced AI stock.

While explaining his strategy, he referenced the bullish momentum on NVDA and its potential to create sympathy plays in this red-hot market driven by AI.

All a trader had to do was identify this low-priced stock capable of building on the NVDA momentum.

As a result: Jack called a 100% spike on this former AI runner …

SoundHound AI Inc. (NASDAQ: SOUN)

© Millionaire Media, LLC

Past spikers can spike again.

That’s one of the reasons SOUN was an obvious trade (besides its connection to AI).

In 2023 prices spiked 410%.

SOUN chart multi-month in 2023, 1-day candles Source: StocksToTrade

SOUN works in conversational intelligence. Essentially it helps business people communicate across language barriers.

The company is set to announce earnings on Thursday, February 29.

But the market didn’t wait for that announcement …

SOUN prices already gapped up on February 15 when it was disclosed NVDA bought a stake in several low-priced AI plays, SOUN was one of them.

SOUN share prices consolidated after the announcement. And when NVDA announced bullish earnings, the momentum spilled into SOUN before the company could even announce its own earnings.

The total spike already measures 380% for the month of March. Look at the chart below:

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

Jack warned Challenge students two trading days before the breakout!

That’s a 100% move …

And it’s all because we know how to track the market’s hottest momentum.

The Next Big AI Trade

© Millionaire Media, LLC

More of my students are passing the $1 million milestone because there’s a growing number of mentors to showcase this process.

I didn’t catch the trade on SOUN. But luckily, there are other students, like Jack who show up in the Challenge chat and point out these obvious plays.

Check out the screenshot below of Jack logging his SOUN trade …

Source: Profit.ly

If you want to trade like a millionaire: Surround yourself with millionaires.

The information you need to dominate this niche could rub off once you start mingling with me and my top students.

>> Get in the Challenge <<

And get ready for the next LIVE trading session we’re holding for students. There are spikers every day in this 2024 market!

Cheers.


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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

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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”