The Trade Setups Wall Street Won’t Tell You About

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Written by Timothy Sykes
Updated 11/6/2025 6 min read

Everyone’s preoccupied with the big names in the market right now: Apple, Nvidia, Amazon.

Blue-chip stocks like these, they’re well-known. Predictable. Boring.

Yes, the AI boom has lifted these giants. But there’s a dirty secret that Wall Street doesn’t want you to know about …

The real profit potential for individuals, people like you and me, doesn’t come from the stocks that Wall Street praises. But the ones they pretend don’t exist.

I’m looking for the stocks that Wall Street hates.

You know the type:

  • Small market caps.
  • Ugly balance sheets.
  • Questionable management.

On paper, these setups are the lowest of the low.

But under the right conditions, they explode 100%, 300%, even 1,000% intraday!

These are moves that NVDA can’t even dream of.

For example, already this week, a small-cap software company spiked 1,100%*. And it followed my patterns perfectly.

Most traders will never know how to spot these moves.

They’re usually too late. Or worse. They’re stuck bag-holding blue chips, waiting on measly gains.

Got a small account and a big work ethic?

These setups are made for you!

Good Companies V.S. Bad Companies

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Let’s get something straight, part of my trade process goes against a key rule that Wall Street stresses …

  • They buy stock in good companies.
  • I buy stock in bad companies.

But understand, our goals are completely different.

Wall Street is looking for long-term gains. They target companies that are most likely to grow in value over the next few months, years, and decades.

Small-account traders like you and me, we don’t have time to wait for long-term gains.

So instead, I focus on larger percent gains in a shorter time frame.

And without fail the largest stock spikes come from the worst companies.

For example, there were two promising runners this week from two different tech-related stocks:

  • Stagwell Inc. (NASDAQ: STGW)
    • This stock has a market cap. of over $1 billion. And on November 6 it announced a new partnership with Palantir Technologies Inc. (NASDAQ: PLTR).
  • MMtec Inc. (NASDAQ: MTC)
    • This stock has a market cap. of only $80 million. And before this week’s spike, the price hit new 52-week lows.

Which stock do you think spiked higher?

  • STGW is a more credible stock. It’s more valuable based on the market cap. And it announced news with a globally famous AI-related company, Palantir.
  • MTC is a fraction of the size of STGW. And it didn’t announce any news before the move.

STGW, spiked 80% during premarket on November 6. Then the price faded the rest of the day.

On the chart below, every candle represents one trading minute:

STGW chart intraday, 1-minute candles Source: StocksToTrade
STGW chart intraday, 1-minute candles Source: StocksToTrade

MTC spiked 1,100%* in less than two days. And the price is still up.

On the chart below, every candle represents one trading minute:

MTC chart intraday, 1-minute candles Source: StocksToTrade
MTC chart intraday, 1-minute candles Source: StocksToTrade

How Is This Possible?

Most traders don’t understand why the worst companies often make the biggest moves.

There are two simple reasons.

First, the size of the stock’s float.

These “crappy” stocks usually have fewer shares available to trade. When demand surges, even slightly, the limited supply can send prices vertical.

It’s basic economics: Low supply, high demand, big price spike.

  • STGW had a float of 244 million shares.
  • MTC had a float of only 25 million shares.

Second, there’s an overwhelming amount of short sellers in the market right now.

Crappy stocks attract a ton of short sellers because they look awful on paper: Bad financials, shady history, next to no news.

Shorts figure they can ride the bearish momentum for fat gains.

But when too many short sellers find the same stock, any bullish momentum can cause a few to scramble and buy-to-cover, closing their positions.

That fleeting bullish momentum can cause more shorts to panic.

And soon enough, we’ve got a full-blown short squeeze on our hands.

Look at MTC, a stock with almost no real business, terrible fundamentals, and a sketchy long-term chart.

It spiked 1,100%* in two days because it had a low float and the chart kept falling lower, luring in more short sellers day after day.

The low float met the high demand. Shorts got trapped. Boom. Supernova.

Now compare that to STGW, an actual business with a real AI partnership and positive news. It spiked 80% during premarket on a solid catalyst … But it slid lower intraday.

Why? Higher float. Less explosive potential.

It’s not about the quality of the stock. It’s about the quality of the setup.

More Breaking News

Small-account traders should stop chasing “good” stocks, and start following small-cap runners that have only just started to spike.

The Next Small-Cap Supernova

© 2025 Millionaire Media, LLC

The next MTC is right around the corner.

And the only question is, will you be ready?

When a low-float stock with high-squeeze probability starts to heat up, I don’t hesitate.

I send an instant Supernova Alert to my students, so they’re not chasing late.

Forget the slow grind of “valuable” stocks. That’s Wall Street’s game. Not ours.

This Supernova strategy is built for small-account traders.

  • Fast setups.
  • Big momentum.
  • Repeating patterns.

You just need the right timing.

And that’s exactly what my Supernova Indicator delivers.

I’ve used this strategy for over 20 years. My students have used it to flip small accounts into millions.* Now it’s your turn.

Watch my video below to find the next Supernova stock spike:

Cheers

 

*Past performance does not indicate future results


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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.
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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”