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Trading Tips-Tim Sykes Penny Stock

What I Look For In My Over-The-Weekend Trades

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Written by Timothy Sykes
Updated 12/5/2022 5 min read

Picture this…

It’s Friday afternoon, and you spot a beautiful setup.

You know the weekend is right around the corner, but decide to take a position anyways.

Monday rolls around, and your position is in the red.

Early in my career, I went through this same situation countless times.

I couldn’t figure out how to make these work consistently.

Rather than give up, I went back to what I knew best – finding an edge.

As I explained in a podcast interview with Brad Lea a few months back, I KNOW I trade garbage companies.

I assume promoters try to manipulate price and pull in suckers.

Rather than fight against them, I ride their tactics to profits.

I did it when I played Evofem Bioscieces Inc. (OTC: EVFM) off the Roe v. Wade reversal, which you can see here in my live webinar available on YouTube.

And it all comes down to this one critical factor that helps a stock move higher over the weekend.

Here’s what it is and how I applied it.

Consider The Catalyst

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The majority of my trades in 2022, and most of my career, rely on some news catalyst.

With EVFM, I performed a simple logic exercise.

  • Roe v. Wade overturned is a big deal
  • People would want alternatives to birth control and related items
  • EVFM develops products to prevent pregnancy
  • People would buy EVFM

Since this all happened on a Friday, traders and investors would have the weekend to digest the news.

By Monday, I expected them and promoters to pump the name.

Sure enough, the stock skyrocketed over the weekend and I made a healthy profit.

Now, I was tipped off that this particular name could run on Friday.

You’ll notice that shares rose slightly on heavier volume.

That at least told me there was potential.

But, the play needed a true catalyst to push it over the top.

Dissecting Headlines

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Learning how to read headlines can be tricky.

It’s why I dedicated a huge section of my Millionaire Challenge education to this very topic, with lessons on everything from reading SEC filings to share offerings.

However, it all starts with the headlines themselves.

For that, you have to be on top of your game.

Now, we’ve made it simple with our Breaking News chat room on our Stocks To Trade platform.

Our team delivers the headlines traders want that move the stocks we play.

For my money, it doesn’t get any easier.

When I read through headlines I ask myself the following questions:

  • Does this matter?
  • Is it new information?
  • Is it timely?

A headline about a CEO speaking at a conference the following month isn’t a game changer.

But a biotech that receives FDA approval is.

These catalysts combined with chart setups are what create spectacular weekend trades.

That said, catalysts are just one leg to a trade’s foundation.

Bringing it All Together

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A headline is only as good as the setup that goes along with it.

Two weeks ago, I bought shares of CGrowth Capital Inc. (OTC: CGRA) based on this tweet.

This purchase was on Tuesday, but it was still an overnight swing trade.

Now, the announcement wasn’t completely new information. There had already been news weeks ago about the acquisition.

However, this tweet teased its immediacy.

I entered the trade in the afternoon as volume picked up and bullish price action formed after the tweet.

The chart looked something like this:

My expectation was the stock would try to push through the recent highs and keep going.

However, I ended up closing the trade the following day, locking in a modest gain.

Over the years, I learned that red days that follow big green days tend to precede more red days.

If this was 2021, where everything would eventually run, I might have given it more time.

However, 2022 is the year of locking in profits when you get them.

So, I took this win and walked away… apparently a bit too early.

Since then, shares ripped and kept on going.

As this follows a recent pattern of runners, I will test a bit more aggression in the future.

However, the point here is that I stuck to my methods and strategies.

Sometimes it may leave money on the table.

But, the hardest part of trading isn’t winning…

It’s keeping your profits.

So, take trades that offer the best odds and cut losses quickly.

Slow and steady compounds greatly over time.

—Tim


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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”