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Trading Tips-Tim Sykes Penny Stock

A $6,476 Reason to Watch Former Runners

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Written by Timothy Sykes
Updated 10/8/2021 7 min read

Former Runners: Key Takeaways 

  • Why former runners have the potential to run again…
  • How I traded a recent former runner and profited over $6,400!*
  • Why studying the past is a MUST — especially for new traders…

Get the “proprietary” detector for spotting HUGE spikes in penny stocks

Former runners that have gone supernova in the past can do it again. That’s why I always tell students to STUDY THE PAST! A stock’s history can tell you whether it has the potential to spike. Learn from these two examples and one of my trades here.

What’s a Former Runner?

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A former runner is exactly what it sounds like — a stock that’s run before. It could have been last year, last month, or last week.

These stocks have the potential to go supernova again, so you have to dig in to understand why the stock spiked. What was the catalyst? How much volume did it trade? How big was the spike, and how long did it last?

Remember, history doesn’t repeat, but it often rhymes… 

Why Studying the Past Is Imperative for Future Success

Before you take any trade — ALWAYS look at a stock’s history.

Stocks have personalities. It’s like how athletes have muscle memory. Stocks have a memory too. That’s because traders often remember former big runners. They know what’s possible with a stock. And with enough momentum, it can become a self-fulfilling prophecy.

The past can also show you which indicators and catalysts can move stocks. And when sector momentum comes into play.

Let’s dig into some recent examples so you can see what I mean…

A $6,476 Reason to Watch Former Runners

My recent Clean Vision Corporation (OTCPK: CLNV) trade is a great example of how I trade a former runner spiking on news.

First, look at the two-year chart…

CLNV chart: 2-year, daily candle — courtesy of StocksToTrade.com

You can see the stock had a huge multi-day run in April 2020. It went from 5–45 cents in a few days.

Then in January 2021, the stock spiked again. And before my recent trade, it ran from about 2–7 cents in four days. It was back to trading around 3 cents when the company released news on a Friday afternoon…

That’s when I recognized a pattern I’ve traded since college. And I made $6,476 on my trade.*

I break down my entire trade and weekend profit strategy in this video…

Notice that I didn’t swing for a home run. And I didn’t hold and hope the stock would go back to its former highs. I had a specific trading plan and I followed my trading rules.

Want to get an alert the next time I see a trade with weekend-profit potential? Learn more about Weekend Profits and sign up here.

Here’s another example of a former runner going full supernova…

Fernhill Corporation (OTCPK: FERN)

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FERN had a small spike in May. Then it had a big multi-day run in July after the company announced it will acquire a crypto mining platform.

Crypto was a hot sector at the time. Bitcoin (BTC) bounced from $30,000 to $40,000 that month.

Then in September, FERN spiked again. The company appointed a new executive vice president and provided an acquisition update on September 9. Then on September 29, it launched a website for its crypto mining platform. The stock hit new multi-year highs.

Check out FERN’s one-year chart. It’s beautiful…

FERN chart: 1-year, daily candle — courtesy of StocksToTrade.com

FERN was one of my Supernova Alerts in September.* It was also on my daily watchlist sent to Profit.ly subscribers. Choose the right Profit.ly subscription for your dedication level here.

How to Find Former Runners

Finding former runners isn’t luck — it’s a skill. And it’s a repetitive strategy.

So what’s the best way to find former runners? Studying the past.

Use a platform like StocksToTrade to keep watchlists of former runners and see the catalysts that make them run.** The more you study, the easier it can be to recognize patterns.

Former runners are what my students and I look for every day. And I want to help you learn to spot them for yourself. That’s how you can become a self-sufficient trader.

Want to ramp up your trading knowledge? Find the right mentor for you.

Trading Challenge

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I teach students everything I’ve learned from my 20+ years of experience in my Trading Challenge.

I’m basically a glorified history teacher. That’s why I know to watch former runners. But this is just one part of the big picture of trading…

You need rules, discipline, strategies, patterns, and so much more.

It’s how I’ve made over $7.2 million in trading profits and lasted for 20+ years in the market.* You have the opportunity to learn from me and my top students — apply for my Trading Challenge today.

How do you watch and trade former runners? Let me know in the comments!

Disclaimers

*Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work.  Most who receive free or paid content will make little or no money because they will not apply the skills being taught. Any results displayed are exceptional. We do not guarantee any outcome regarding your earnings or income as the factors that impact such results are numerous and uncontrollable.

**Tim Sykes has a minority ownership stake in StockstoTrade.com.


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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. 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”