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Is This The Secret to Turbocharging Your Small Account?

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Written by Timothy Sykes
Updated 12/21/2023 8 min read

This month we’ve been witness to one epic short squeeze followed by another…

  • CCCC surged from $1.12 to an astounding $8.37
  • POL shot up from $1.05 to an impressive $10.85
  • ZJYL went Supernova…taking off from $11.20 and reaching a high of $509.86

You might be thinking, are these just black swan events?

Not at all…these types of moves are becoming a daily occurance.

In fact, right now is the prime opportunity for traders with small accounts to achieve substantial growth.

The question is: Will you seize this opportunity?

It’s true…most traders struggle and lose money. Primarily because they rely on the wrong strategies and have the wrong mindset.

Today, I’m going to unveil what I believe is the single most pivotal mindset shift you can make to turbocharge your small account growth.

Once you begin applying it…you’ll be astonished by how effortless trading can become.

Why The Market Is Heating Up

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It happens everytime around this year…that is the three elements that usually push stocks higher in late December and early January.

 The January Effect , Tax-Loss Selling, and Short Squeezes

As the year draws to a close, investors, both funds and individuals, often practice tax-loss selling.

This strategic move involves shedding underperforming stocks in the months of October, November, and December.

By doing so, they can report these losses on their tax returns.

If they defer selling until January or February, they would have to wait an entire year to claim these losses.

You see how it can be a tactical advantage?

That said, we start to see these beaten down stocks being rebought.

That’s why it pays to close attention to weaker stocks because they offer the possibility of being a good January effect candidate.

This in turn is creating some massive short squeezes. 

Take for example POL from the other day…

The catalyst was so ridiculous…and the stock had no business going up.

A shareholder of two whopping shares made a filing urging collaboration among shareholders and the company.

It was a non-event…yet stubborn short sellers couldn’t help themselves.

They knew the story was bs…so they started shorting away.

But here’s the thing…

It doesn’t matter if you’re right, because most short sellers are eventually proven right. What matters is can you manage the risk.

And POL went up to $10.85…

Imagine shorting it at $2, doubling down at $4, and tripling down at $6?

You see how easy it is to blow up your account as a short seller in this market?

That’s why you should never trust these short sellers.

Many of them have deals with shady brokers…many of them have multiple accounts and only share what a few are doing…and many of them have no clue how price action works.

There’s a reason why short sellers are being investigated…because they are shady…

But as much as I love to bash them, I hope they continue to act stupidly.

Because without them, we wouldn’t be seeing these epic short squeezes. 

The #1 Mindset You Must Inherit

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I’ll be the first to admit it…I’m not a huge fan of trading all these short squeeze stocks.

They’re super volatile and unpredictable.

However, I’ve had to adapt because this is where we’re finding the best opportunities.

So how am I able to trade them?

I trade scared. 

Have you ever heard the expression scared money don’t make money?

Well it’s BS.

Scared money does make money.

Here’s how:

First, I’m thinking about defense and protecting capital. Something short sellers are completely clueless about.

I’m focused on specific entries with specific outcomes. If my desired outcome doesn’t play out fast enough…I’m out.

I’m either cutting losses quickly or taking the trade off at break-even.

I don’t sit around, hope, wait, and pray.

In addition, I don’t size up on these trades because the swings can be volatile.

One of my students took 100 shares of POL at $2.57 and got out at $7.42.

That’s $485 back from an initial $257 stake…

Do you see how powerful these moves are and how quickly a small account can grow if you’re on the right side of them?

You don’t need a lot of shares when stocks are moving so much…

I’ve amassed over $7.5 million in trading profits not because I’m a big trader who takes wild swings…but because I trade conservatively and in a cowardly way.

Here’s how trading like a coward elevates your trading:

  • You’re thinking about risk management all the time and ready to cut losses quickly
  • You’re focused on keeping losses small and not letting them get away
  • It allows you to recognize failure and losing as an option…which leads to trading safely
  • You’re not constantly stressed and on the verge of having a heart attack.

You can trade these exciting stocks conservatively and without having to risk your account in the process.

Start by focusing on high probability setups and be strict with your risk management rules. 

None of my top students had success right away. You want to protect your capital until you figure out what works. And only look to scale up once you’ve proven that you’ve got an edge.

Ready to Turbocharge Your Small Account and Navigate the Market with Confidence? 🚀

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Discover the powerful mindset shift and strategies to seize opportunities like the ‘January Effect’ and short squeezes. Don’t miss out on potential gains!

🔥 Join our live training sessions this week:

🔥 Uncover actionable strategies for today’s market

🔥 Gain insights into unpredictable market behaviors

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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”