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Patterns To Watch

The #1 Trade Setup Today

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Written by Timothy Sykes
Updated 4/30/2024 5 min read

All it takes is one stock a day …

You don’t have to trade multiple stocks every day to pull a profit from the market. Actually, traders are better off sitting on their hands.

Wait for the best setup to profit. Then get in and get out.

We can use yesterday as an example:

There were thousands of stocks moving. But I was focused on AGBA Group Holding Limited (NASDAQ: AGBA).

The price spiked 80% in total and matched my framework perfectly. I managed to pull two profits from the price action. My trade notes are below.

With a starting stake of $13,900:

Source: Profit.ly

With a starting stake of $10,710:

Source: Profit.ly

All it takes is one stock.

To prove my point even more, I traded a second stock yesterday …

Global Mofy Metaverse Limited (NASDAQ: GMM), with a starting stake of $6,156:

Source: Profit.ly

Luckily, I noticed the trade was going south so I cut it for a small loss. I stayed green on the day.

But I could have focused solely on AGBA and then went about my business.

Focus on the #1 runner, and don’t get greedy!

Today’s #1 Setup

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We’re looking for stocks with a low float that are spiking with a news catalyst.

  • AGBA has a float of 15.7 million shares. That’s close enough to the 10 million share goal. Anything less than 10 million shares is considered a low supply. And the low supply helps prices spike higher when demand increases.
  • AGBA announced a $4 billion merger with Triller. That’s our catalyst that spikes the demand.

I got an alert from Breaking News right when the price started to move.

Take a look at the alert details on the chart below. Every candle represents one minute:

AGBA chart intraday,1-minute candles Source: StocksToTrade

And this is a chart of the entire move:

AGBA chart intraday, 1-minute candles Source: StocksToTrade

Breaking News finds the hottest catalysts in the market right when they’re announced. That’s how I have eyes on these plays so early.

>> Here’s where I’ll get the next alert <<

Once I see the notification, I have to wait for the stock to match my framework.

Trading Framework

© Millionaire Media, LLC

The most volatile stocks in the market can follow popular trade patterns because people are predictable during times of high stress.

In the market, it’s a balance between fear and greed.

When someone from the general public has a couple thousand dollars in a stock spiking 80% intraday … There’s a decent amount of fear and greed. Thus, they tend to behave predictably.

Our goal is to recognize the patterns and capitalize on them. My Tweet below has more information:

The entire framework is 7 steps.

You’re welcome to trade whichever angle of the framework you like.

But at first: I recommend a trader focuses on one pattern.

After a trader masters one setup, they can branch into other profit strategies. Like Jack Kellogg did …

Jack is one of my most successful millionaire students. In a fraction of the time, he surpassed my $7.6 million trading profits and is sitting at $12.5 million (including losses).

Jack plays every angle of the 7-step framework. That’s my goal for YOU.

But let’s take it one step at a time.

>> Maybe start with Jack’s #1 trade setup right now <<


*Stock trading is inherently risky.

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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”