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Why This Trading Niche Is The Best!

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Written by Timothy Sykes Reviewed by Jack Kellogg Fact-checked by Ben Sturgill
Updated 9/11/2024 4 min read
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Our profit opportunities don’t depend on the larger market!

When traders see bearish price action in the market, it sometimes scares them out of decent setups.

But all this week, my students and I are finding trading opportunities despite the sketchiness of major indices.

Most recently, the market showed us a volatile reaction to Wednesday’s CPI inflation data.

The CPI slowed to 2.5% year-over-year. At face value, that’s a good catalyst in an economy trying to bring inflation between 2% and 3%.

But digging deeper, the core CPI showed a slight uptick to 3.2% … The core CPI excludes groceries and energy costs.

Take a look at the S&P 500 ETF Trust (NYSE: SPY) chart below. The price dipped yesterday morning and then rallied back in the afternoon.

Every candle represents one minute:

SPY chart multiple days, 1-minute candles Source: StocksToTrade

The market is VOLATILE right now.

And for the traditional investor, that’s scary.

But for me and my students, it’s a dream, come true!

Traders need volatility to find solid profit opportunities. Like the insane run on Quhuo Limited (NASDAQ: QH) on Tuesday afternoon. See my post on X below:

Don’t worry about the larger-market turmoil.

Instead, join me and my students as we snipe the hottest stocks in the market for short-term trades.

My Trading Framework

© Millionaire Media, LLC

We’re not trading at random …

There’s a process for success in this niche, and it comes with specific rules.

Some of my students follow my rules, that’s how they find success. Some of my students ignore my rules, they quickly grow frustrated.

Trust the rules. Trust the process.

My millionaire students and I are proof that my framework works! See my post on X below for an example of two brand-new millionaire students:

This is the framework that we follow!

And I have countless students using this framework to work toward $1 million in trading profits…

That’s the Challenge. If my students can make $1 million in trading profits, it’s a sign that they’ve mastered this process as a trader.

Anyone can get lucky in the market … But it takes a real trader to build their small-account over time.

And it’s never too late to start!

Here’s an example of a student who’s still learning in this market:

Source

Plus, in 2024, my students can use AI to track these plays.

I taught my trading framework to an AI bot … 

The patterns are always the same. So it was only a matter of time before the AI caught on.

The bot is called XGPT, and my students can either …

  • Wait for the afternoon watchlist.
  • Enter their favorite ticker at any time for a comprehensive trade plan.

This interactive trading bot gives my students the ability to trade as if I was in the room with them!

>> Use XGPT to follow my framework and build SMART positions <<

There will be more opportunities to trade this week!

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. 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”