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Trading Recap

Was This Trade Better Than LIFW? 📈

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Written by Timothy Sykes
Updated 11/7/2023 8 min read

Trading is not just a game…

It’s a psychological battle against the market– and yourself.

Trusting the process is vital…yet often elusive.

Patience is your companion, the quiet force guiding you to wait for the right moment.

Logically, it makes sense.

However, we have this incredible urge inside us to go out and trade, and try to make something happen. We sometimes want to make money so bad…that we force trades.

Which usually ends with pain and regret.

Remember LIFW’s wild ride from $3.05 to $17.48?

Sure…it was an epic short squeeze. But what if I told you there was a cleaner trade, more calculated, and incredibly lucrative?

I’ll show what that trade was, how it was responsible for one of my best trading days of the year, and how you can potentially take advantage of this recurring setup.

One Of My Best Days…Despite Difficult Conditions

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Believe it or not…some of my best trading days occur when I’m jet lagged and sleep deprived.

Monday was no different.

If you’ve been following me on social media then you know I’m in Japan right now.

Not only did I get a chance to meet up with one of my first millionaire students, Michael Goode…

But I got an opportunity to meet up with my inner circle student Cameron and his wife…

If you haven’t heard about my inner circle yet, you can learn more about it here.

So yeah…I haven’t gotten tons of sleep…but that actually works in my favor.

Why?

Because I’m not in a rush to trade.

Moreover, it allows me to focus and wait for the absolute best setups to trade.

And that’s what happened on Monday.

Was This A Cleaner Trade Than LIFW?

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I actually didn’t trade LIFW on Monday…however I did have it on my radar.

In fact, days before the epic short squeeze, I made an entire video about it.

It rallied by more than 1,000% from when I first got in earlier in the month.

But despite not trading it on Monday…I was able to get in on the action via a sympathy play.

What Is A Sympathy Play

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A “sympathy play” is a term for stocks that catch the momentum of a leading stock within their sector or sharing key traits.

These “sympathy” stocks often trend alongside the primary mover, reflecting sector-wide investor sentiment.

Take the meme stock mania of 2020: one stock’s gain would typically buoy others in its wake, demonstrating the phenomenon. In the crypto stock rally of 2021, a single stock’s positive news could trigger a widespread surge.

While this dynamic affects both positive and negative news, the initiating stock usually experiences more intense volatility compared to its sympathetically moving counterparts.

So what was the sympathy play for LIFW?

Was CANO A Better Play Than LIFW?

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I traded the ticker symbol CANO twice on Monday…making solid gains each time.

Why did I trade it?

Because I got a StocksToTrade Breaking News alert… It turned out that CANO had a 60% stake in LIFW. In other words, the higher LIFW went up…we should see some upwards movement in CANO.

And that’s exactly what happened.

My first trade I bought 2,500 shares at an average price of $12.57, which cost me $31,425…I got at $13.10…a profit of $1,325.

I got a chance to trade it on a panic dip buy again…

This time I bought 2,000 shares at $13.03, which cost me $26,060…I got out at $13.57…a profit of $1,080. 

Source: etrade

At one point the stock was up over 50%…

Now, I didn’t nail the entries or exits…

But when a stock makes such an impressive move…you don’t have to be perfect to profit.

And you know what else?

Traders are constantly looking for sympathy plays.

Why?

Because if something recently worked…they are trying to replicate that success.

They’re always trying to find connections and take advantage of similar situations.

That’s why I’m constantly telling my students to study hard.

Ready to Uncover the Psychology Behind the Trade? 🧠

sykes standing in airport
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The trading world is more than just numbers and charts; it’s a mental arena where patience and strategy reign supreme.

Remember the wild LIFW rally from $3.05 to $17.48? That wasn’t just luck—it was a psychological mastery and a perfect demonstration of timing and market sentiment understanding. 🚀

🔥 What if you could spot a “cleaner,” more calculated trade, just like the CANO play I mastered for a massive win, even under sleep-deprived conditions?

🔥 What if you could learn to harness the power of sympathy plays, riding the waves of market momentum for your gain?

📉 Too many traders force the action, resulting in loss and regret.

But you can shift the odds in your favor by learning to wait for the right moment, just like I do, even when every fiber of your being urges you to trade.

👀 Join us for our next live training where I’ll break down my trades, reveal the secrets behind successful sympathy plays, and show you how to patiently pull the trigger on trades with the highest potential.

🚀 Gain exclusive insights into actionable strategies that work in today’s complex market.

🚀 Watch over my shoulder as I analyze the market in real time and teach you to profit from the psychological battles of trading.

Are you ready to learn the art of patience and strategy in trading?

To capitalize on market movements and develop a mental edge over the competition? Your chance to be part of my inner circle of traders is just a click away.

Take the next step in your trading journey. Learn the ropes of winning psychological warfare in the markets. Your spot at my live training is waiting. 📈

👉 CLICK HERE TO GRAB YOUR SEAT NOW!👈

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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”