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Trading Tips-Tim Sykes Penny Stock

Can This Tool Give You An Unfair Advantage?

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Written by Timothy Sykes
Updated 6/6/2023 7 min read

A lot of you guys still don’t get it.

The reason why I have so many millionaire students isn’t because I’m the world’s best trader—far from it.

It’s because I’m still in the trenches.

Most “gurus” aren’t active traders. And if they do trade, they trade completely differently than what they teach their students.

I teach people a process and strategies for building a small account. 

I show them how to find opportunities and ways to play them.

Believe me…I’ve accumulated enough wealth that I never have to place a single trade again.

But how can I teach effectively if I’m out of touch with the market?

And show you where opportunities lie if I’m not searching myself.

Like the AI-themed play I had yesterday that delivered a quick 13% winner.

I’ll show you why I liked this play and how to find others like it.

 

Find Opportunities In This Market

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My charitable foundation has me traveling all over the world.

The fact that I’m in a position to give and help others is what motivates me.

But non-stop traveling can be tough, and I’m often unsure if I’ll have wifi, and if I do, will it be good enough to trade?

With just a laptop at my disposal, I don’t have screen space or time to open multiple browser tabs looking for news and trade ideas online.

That’s why I like to use this chat service for all my breaking news 

It gives me real-time news and curates it, making it easier for me to make fast decisions.

If you’re new to trading, this tool is invaluable. 

Why?

Because you will quickly discover what headlines move stocks, the hot themes in the market, and where traders are finding action.

That right there is super valuable.

As an experienced and profitable trader, I’m always looking for themes in the market.

Themes come and go…but the hottest sector today still is AI.

And while I don’t trade the “mainstream” AI stocks like NVDA, MSFT, and AI.

I will play the penny stock version.

 

My Play In AITX

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Although I’m a short-term trader, that doesn’t mean I don’t look at the history of a stock.

For example, I believe it’s very useful information to know if a stock has a history of making large price spikes, as well as looking back to see how it’s reacted in the past after it issued a press release.

The Breaking News Team alerted me about this headline on Monday:

AITX’s Subsidiary, Robotic Assistance Devices, Prepares RADDOG™ 2LE’s Launch as Its Introduction on FOX Entertainment’s ‘Stars on Mars’ Approaches

Detroit, Michigan, June 05, 2023 (GLOBE NEWSWIRE) — Artificial Intelligence Technology Solutions, Inc., (the “Company”) (OTCPK:AITX), a global leader in AI-driven security and productivity solutions, along with its wholly-owned subsidiary Robotic Assistance Devices, Inc. (RAD) have announced that complete details, features, and specification of RADDOG 2LE will be announced the day after the quadruped robot premieres on the all-new TV series “Stars on Mars,” which will debut on FOX on Monday, June 5 (8:00-9:00 PM ET/PT).

Knowing that AI is the hottest theme, I felt this had a shot at going.

When I looked back at my charts, I saw that it was a former Supernova in 2021.

In fact, if you look at profit.ly, I’ve had a great deal of success trading the symbol, as well as, many of my students.

Source: Profit.ly 

I knew the stock had a history of running…and it’s a symbol I’ve had success with.

Now, that’s all good.

But that alone does not justify a trade.

What I really liked about it was the company announced a catalyst.

Its robotic dog would appear on the new FOX show “Stars on Mars.” And that they would be revealing new details about their AI dog.

I decided to get into the trade late on Monday at the price of $0.0119.

Source: StocksToTrade

Which was off its morning highs of $0.0146.

I thought more people would see the news and possibly bid the stock up in the pre-market on Tuesday.

And my goal was to make a quick 10-20%.

The stock did gap up a little in the pre-market thanks to this news it had:

AITX’s Subsidiary, Robotic Assistance Devices, Unleashes RADDOG™ 2LE, the Robotic Dog for Law Enforcement Applications

Artificial Intelligence Technology Solutions, Inc.

Detroit, Michigan, June 06, 2023 (GLOBE NEWSWIRE) — Artificial Intelligence Technology Solutions, Inc., (the “Company”) (OTCPK:AITX), a global leader in AI-driven security and productivity solutions, along with its wholly-owned subsidiary Robotic Assistance Devices, Inc. (RAD) today announced that it is now accepting orders for RADDOG 2LE, the robot dog purpose-built for law enforcement agencies. Limited quantities are available as early as July 2023.

It wasn’t a massive spike, but it was good enough for me to get out at $0.0135, a gain of 13.4%.

Sometimes traders will hold to see how a stock opens up. I prefer to get out in the pre-market. It allows me to lock profits and gives me a chance at a potential re-buy if it sells off.

Final Note

jack kellogg and sykes in italy
© Millionaire Media, LLC

Use tools like this one to help find your plays. 

Look at things based on risk vs. reward.  I liked this trade later in the day on Monday vs. trying to trade it early. If I am gonna take a trade in the morning, it will most likely be a panic dip buy.

I’m aiming for singles. I prefer to stack small wins vs. going for that one big trade.

Focus on high-quality setups, and don’t forget to cut losses quickly if a trade isn’t working.

Want to find plays like AITX?

Use this…it works for me.


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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

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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 (205) 851-0506 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”