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Watchlists-Penny Stock Investment Strategy

Watch These 3 Trump Stocks!

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Written by Timothy Sykes
Reviewed by Jack Kellogg Fact-checked by Ellis Hobbs
Updated 11/6/2024 6 min read

Welcome traders,

There are three stocks showing us volatility related to Donald Trump.

And since Tuesday’s election results overwhelmingly lean toward the former President … Now President Elect …

These three stocks could continue to show us volatility this week.

Plus, we already watched the S&P 500 ETF Trust (NYSE: SPY) shoot to new all-time highs as a result of the election.

Take a look at the chart below, every candle represents one trading day:

SPY chart multi-month, 1-day candles Source: StocksToTrade

This is good volatility!

Three out of four stocks follow the market. Which means, when the market shows us bullish momentum like this, we’re more likely to find strong stock spikes in our low-priced niche.

The volatility isn’t over for these three Trump stocks … And the trajectory of the overall market increases our odds of profitable price spikes.

Make sure you’re watching the price action on these stocks!

How To Trade Volatile Stocks

© Millionaire Media, LLC

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

Like when they have a few thousand dollars in a stock that’s spiking +100% intraday (a common occurrence in our niche).

Essentially, we’re trading human psychology.

And luckily, the patterns that we use to trade don’t change!

People have always behaved similarly when they’re stressed. Since the dawn of time. And as a result, these patterns will always stay the same in the market.

Attention traders who are looking to use my patterns: You have two main options.

  • STUDY: Study the overall pattern framework. Follow my past trades. Watch the live-trading webinars that I stockpile for student use. Tune in for future live-trading sessions.

Or …

  • Use my AI-trading bot to build smart positions that follow these patterns!

After AI rocked the world in early 2023, I knew the technology had massive potential to help traders follow my process.

So I started feeding it trade examples and live data to help train it. Like it was one of my students.

Sure enough, it started to catch on. Remember that these patterns are always the same. It was only a matter of time until the AI started to call trade setups all on its own.

Let’s take a look at an example from earlier this week. SIMPPLE LTD. (NASDAQ: SPPL).

The price started to spike on Monday, November 4. It ran 140%* by noon!

My AI-trading bot, XGPT, scanned the intraday volatility and alerted a trade setup into the afternoon.

On the chart below you can see when the position was alerted. From Monday to Tuesday, every candle represents one trading minute:

SPPL chart multi-day, 1-minute candles Source: StocksToTrade

Get the next AI trade alert from XGPT!

Trump Stocks

Trump Runner #1:

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The most obvious Trump-related stock is Trump Media & Technology Group Corp. (NASDAQ: DJT).

The stock has shown us a lot of volatility leading up the election. Even bouncing off of the $30 support level this week.

Above all things, it’s important for traders to understand that DJT is NOT a good stock.

The company that it represents, Truth Social, is a laggard in the social media industry. But that doesn’t matter for our trading, we’re only interested in the volatility created by the election hype.

Take a look at the chart below of DJT in recent weeks. The price is still up, and that means we can expect intraday volatility.

Every candle represents one trading day:

DJT chart multi-month, 1-day candles Source: StocksToTrade

Trump Runner #2:

The second Trump-related play is Phunware Inc. (NASDAQ: PHUN).

This company helped Trump run his former campaign against President Joe Biden. And ever since, we’ve seen volatility from the stock with relation to Trump.

The price didn’t bounce as much as DJT this week, but the price is still up.

Plus, StocksToTrade shows that the float is only 11 million shares. That’s close to our goal of 10 million shares or fewer.

The low supply of shares helps prices spike higher when demand increases.

Take a look at the PHUN chart below, every candle represents one trading day:

PHUN chart multi-month, 1-day candles Source: StocksToTrade

More Breaking News

Trump Runner #3:

And last but not least, the most recent Trump runner, DatChat Inc. (NASDAQ: DATS).

On October 31, a subsidiary of the company announced that it was launching a ‘Trump Trivia’ podcast.

Now … I don’t know if this podcast will be successful. If I had to guess, I’d say probably not. These penny stocks are always promoting new profit avenues that eventually implode on themselves.

But again, I’m most interested in the hype surrounding the election, not the actual business metrics.

Trump won on Tuesday night/Wednesday morning. And when the market opened on Wednesday, November 6, DATS launched past $2 resistance from the last few months.

Take a look at the chart below:

DATS chart multi-day, 1-minute candles Source: StocksToTrade

Plus, StocksToTrade shows that the float is only 2.5 million shares.

As long as the price stays up, we could still see profitable volatility from these stocks.

Keep them on your watchlist!

Cheers.

*Past performance does not indicate future results

 


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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”