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When the Upside Makes Trading Worth It

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Written by Timothy Sykes
Updated 8/27/2026 6 min read

Surprise, surprise, my favorite patterns are working morning, noon, and night.

It would be easy to think every big spiker is worth a trade, right?

The question is…

Are you prepared to capitalize?

And what about all this end of summer choppiness?

I believe you can prepare for most situations, as long as you keep one thing in mind.

Always go for…

Quality Over Quantity

Especially as we come to the end of a slow month and a slower week, this is the normal summer lull with lower trading volume.

But also, the Fed Chair will give his keynote address from Jackson Hole at 10:00 a.m ET today.

So, the markets will probably be slower until after his speech.

Regardless, we have seen a LOT of Supernovas in the past month. For example…

FCUV, AMIX, PLAG, VCIG, Summer Supernovas
FCUV, AMIX, PLAG, VCIG, Summer Supernovas

That’s four stocks that spiked at least 400% in the last month alone (and we’ve seen MORE Supernovas).

You gotta love penny stocks, right?

Just remember that we’re still in this summertime choppiness.

So, as much as we all want to nail another trade, don’t force it.

Let’s look at two trades from earlier this week that show when there’s enough upside to make trading worth it.

The setups are similar, but the outcome was different…

A Tale of Two Premarket Runners

VCI Global Limited (NASDAQ: VCIG) was a big premarket spiker on Wednesday (August 26) after the company announced “the launch of Galatron AI Factory.”

I have to thank the STT Breaking News guys for the heads-up.

When the news alert dropped, I remembered that VCIG is a former Supernova…

VCIG, May through August, 2026, former Supernova
VCIG, May through August, 2026, former Supernova

As you can see, it ran from sub-$1 to the $11s back in May.

VCIG had a lot of potential upside:

  • A history of spiking (and multi-day runs)
  • An AI-related press release
  • A micro-float of 956K shares (which increases potential volatility)

Here’s my premarket trade…

VCIG, 8/26/26, 1-min candles, premarket breakout with news catalyst
VCIG, 8/26/26, 1-min candles, premarket breakout with news catalyst

VCIG was moving so fast I only got a partial fill.

My goal was 10%–20% and I would’ve cut losses if it didn’t hold $4. It was a rocketship!

It looks like the first fade caught shorts off guard, and the bounce trapped a lot of them.

I’ll take a trade like that any day of the week. It was the right idea, the right plan, and solid execution.

That’s a perfect example of when the upside makes trading worth it.

Now for yesterday’s premarket spiker…

Youxin Technology Ltd (NASDAQ: YAAS) was a premarket earnings winner on August 27.

The earnings announcement also leaned heavily into its AI-PaaS (Platform-as-a-Service) story.

I dip-bought YAAS off its high in the $4s.

My goal was anything from 5%–15% and I was willing to cut losses fast if it didn’t bounce (it was SO choppy)…

YAAS, 8/27/26, premarket dip buy
YAAS, 8/27/26, premarket dip buy

Like VCIG, YAAS had a lot of potential upside:

  • It was an earnings winner
  • AI-related press release
  • Small-float: 6.7M shares (small enough to amplify volatility)

YAAS ended up being a snoozer for me. Zzzzz…

It had a small bounce, but there were lots of sellers at the key level of $3.50.

I was hoping shorts would get squeezed for a solid follow-up spike.

When it looked like shorts were in charge, I locked in the small gain.

Even though it did spike to the $3.70s a few minutes later, I would’ve cut losses when it dropped to the $3.20s.

Again, YAAS had enough upside to make trading worth it.

The biggest lesson from these two trades is that you have to adapt and change, even day to day.

Also, prepare for any situation…

How To Prepare for After-Hours Trading

By now you SHOULD be receiving the Night Tape emails with my after-hours watchlist.

It’s CRAZY how many winners we’re seeing.

Want to know one of the best things about releasing my new tool?

It has opened SO many traders’ eyes to more opportunities.

Sign Up For My FREE Night Tape Watchlist Here

You’ll also get INSTANT ACCESS to my new guide that explains everything.

On My Radar

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Sign up to jump start your trading education!

Where am I off to next? Watch this space…

Key Takeaway

Remember, successful trading is about optimizing your trading process over time.

Learn as much as you can (a little more every day).

Over time, you can gain the knowledge AND experience to size up and truly capitalize on these setups when they appear.

It’s not an exact science, but the upside makes it worth it. Especially if you are willing to be fast and cut losses (or small gains) quickly.

Cheers,

– Tim Sykes


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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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* 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”