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Patterns To Watch

5 Rules For Trading The Hottest Trading Pattern 🔥

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Written by Timothy Sykes
Updated 11/10/2023 8 min read

I know I posted this a few days ago:

But it’s worth repeating.


Because it’s still working…and pumping out some massive gains for traders.

What’s even more impressive…is that it’s rather simple to learn.

Now, I don’t know how long this will continue…but if you’re in search of making quick short term profits…then this is something you must try to master.

Here are my top five rules.

The Hottest Pattern Worth Trading Right Now

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I’m not the world’s biggest fan of trading short squeezes.

They’re volatile, not always clean, and they sometimes make me feel uncomfortable.

However, this is where the largest opportunities lie right now.

And last I checked I don’t control the markets…so I’ve forced myself to adapt.

You can find out how I’ve been trading these short squeeze plays when you visit my Profit.ly. 

Now on to my five rules for trading them.

Rule #1: Look For The Worst of The Worst Stocks

Tim Sykes checking his top penny stocks list in Italy
© Millionaire Media, LLC

If you’re coming from the investing world this will completely surprise you.


Because some of the biggest short squeezes are occurring in the absolute worst stocks.

The reason is because we’re seeing an overabundance of short sellers pile into these stocks.

That’s right…

What was once a very easy trade…short selling crappy stocks…has gotten flipped around.

Now, the risk-reward has shifted…and it’s actually better to play the long side.

Take the ticker APLD for example…

During the day two short reports came out trashing the company.

You’d think with all the negative news it would crash, right?

Source: etrade

It actually did the opposite.


That’s what happens when shorts are overcrowded, and shady brokers are over allocating shares to borrow.

We’re seeing squeeze after squeeze.

Even AMC…which is notorious for rug pulls, created a dip buying opportunity a few days ago.

Source: etrade

Rule #2: Look For Big Percent Movers + Heavy Volume

Most people when they think short squeezes…they assume it’s a stock with high short interest.

But I’ve never been able to find accurate data pertaining to it. And because of that…I don’t use it.

I think price action is KING.

Look where the volume is…and you’ll likely see what stocks shorts are being trapped in.

Because we all know…it’s not fundamentals moving these stocks.

Rule #3: Don’t Trust These Stocks

risks with position trading
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When you are trading the trashiest stocks you don’t want to keep your eyes off them.

At any point they can fall off a cliff…announce a stock offering…or get exposed.

In fact, using stops in these kinds of stocks is often a bad idea because they can swing up and down so violently.

That’s why I’m never aggressive with my entries.

And I never try to get greedy.

Eventually the shorts will be right…they might be a day, two days, or even three days early…but these stocks will crash.

Rule # 4: Don’t Dip Buy The Backside

One thing newbies do that gets them wrecked is they buy the backside of a move.

What’s that?

Source: etrade

Source: etrade

Check out LIFW….it rallied hard for an entire day…

And the next day it gave a lot of those gains.

You don’t want to be a buyer on day two when the stock is puking.

That’s what it means to buy the backside.

It’s better to buy the dip on day one of the move…

Even better…buy as the stock is making a breakout high.

But stay away from trying to buy the dip after the stock has had a massive sell-off.

Remember, almost all these stocks will come back to their rightful place.

Rule #5: Don’t Get Overly Aggressive With These Trades

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I’m trading these setups relatively small.

I also understand that my timing might not be perfect the first time. In other words, I may get into the same stock 2 or 3 times.

In order for me to do that though, I must keep my losses small. And I must position size accordingly.

These are wild stocks making wild moves.

Be smart with your position size. Even though they are making massive spikes, I’m still trying to trade them conservatively.

Unlock the Secrets of Short Squeeze Mastery with Tim Sykes! 🔥

© Millionaire Media, LLC

Tired of missing out on the market’s wildest rides? Want to learn the patterns that lead to massive gains? Look no further!


🚀 Gain exclusive insights into the short squeeze phenomenon.

🚀 Discover my top rules that lead to trading triumphs.

🚀 Get actionable strategies for identifying and trading high-potential stocks.


With my team’s guidance, you’ll learn not just to trade, but to trade smart. We’re talking about strategies that have been refined in the heat of the market, proven to pinpoint opportunities like the ones that led to:


📈 A 370% rally in RNAZ

📈 A 2300% surge in VTGN

📈 An astonishing 3,733% leap in TPST


We’ll show you how to identify the worst stocks ripe for a squeeze, how to read volume and price action cues, and most importantly, how to manage your risk to stay in the game.


🔥 Learn why you should never trust these volatile stocks.

🔥 Understand why buying the backside could be your downfall.

🔥 Get strategies for sizing your trades to maximize gains and minimize losses.

If you’re ready to stop gambling and start gaining with the market’s hottest pattern, then you can’t afford to miss this.

Your chance to transform your trading approach and potentially rack up substantial profits is just a click away.

This isn’t about following the crowd; it’s about leading the pack.

Join the live training and get ready to take the market by storm.


👉 RESERVE YOUR SPOT for the upcoming live training session and get ready to conquer the market. 📈


This is your moment. Don’t let it slip away.



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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”