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Patterns To Watch

Overcome Your Fear: Trading Supernovas

Timothy SykesAvatar
Written by Timothy Sykes
Updated 5/2/2025 3 min read

In this article

  • KIDZ-26.46%
    KIDZ - NYSEClassover Holdings Inc.
    $4.78-1.72 (-26.46%)
    Volume:  3.10M
    Float:  4.88M
    $4.75Day Low/High$6.53

Last week, Classover Holdings Inc. (NASDAQ: KIDZ) spiked 800%* after the company announced a $400 million equity-purchase agreement with Solana Strategies Holdings.

It spiked from less than $2 per share to over $10!

The larger Wall-Street media barely covered the move. But we did.

I was posting about this stock on X when the share price was still below $4. And some of my students had already traded it by then.

Look at my post below. I had to redact some of the values because X doesn’t verify trades:

tim sykes twitter post
Source

KIDZ is just another supernova spike in a long line of 2025 runners.

Here are more examples of stocks that matched my supernova framework this year:

  • MLGO spiked 1,100%* to end March.
  • JNVR spiked 1,800%* in April.
  • AREB spiked 1,300%* in April.
  • UPXI spiked 860%* on April 21.
  • SBEV spiked 1,200%* in April.
  • CEP spiked 460%* between April and May.

The biggest mistake that traders make when they play these setups: They’re scared.

They’re scared of losing money or scared of missing out on profits. And those emotions will destroy your chance of profiting.

Don’t worry, I have a solution to help traders overcome their fears.

How To Approach The Next Supernova

tim sykes in sedona arizona with laptop of stock chart
© 2025 Millionaire Media, LLC

We see a couple of supernova moves every month.

And that’s the first aspect that traders need to come to terms with: There aren’t supernova opportunities every day.

Traders who fear that they’re missing out on profits are prone to overtrading. No matter how much money they make, they’ll give it all back, and more, while trying to squeeze out extra profits.

Watch my Supernova trading video below. Only trade when you see price action that looks like this:

More Breaking News

On the other end of the spectrum, there are people who fear that they’ll lose money.

As a result, they enter too late or fail to make a trade at all.

You don’t have to swing for the fences.

Start with a small position at first and focus on the percent gain.

Remember, KIDZ started to spike below $2 per share. You could buy one share at a time until you get this process down.

Then scale up your position size as you gain success.

Trust me, everyone gets scared the first few times they trade a supernova.

But the traders that learn how to be successful are the ones that overcome their fears through experience.

Look for this setup on the next supernova spike. Take a small position if you have to.

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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In this article (YTD Performance)


* 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”

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