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Trading Lessons

When to Add to a First Green Day

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Written by Timothy Sykes
Updated 3/11/2022 7 min read

You might not know this, but I go into every trade with a plan. A trading plan is a key part of the process.

Usually when I review trades, it’s about sticking to the plan. Along with this question…

“What Broker Should I Be Using?”

One of the most frequently asked questions I get is…

“How do you know when to alter the plan?”

Sometimes you have to adapt during a trade.

That’s exactly what happened on March 8 when I traded Clean Vision Corp. (OTCQB: CLNV).

In this trade review, I’ll explain my thought process during the trade. Check it out…

Another Perfect OTC First Green Day Play

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On Tuesday, CLNV was a perfect OTC first green day.

What do I mean? This is what I look for…

  • A big percent gain — usually a morning spike.
  • Higher than average volume.
  • A news catalyst. (Keep reading, because the catalyst was comical.) And…
  • The stock is at or near its highs going into the close.

That’s the basic setup.

First, check out the CLNV intraday chart from March 8…

CLNV chart: 3/8/22, perfect first green day setup (Source: StocksToTrade.com)

Inside the Thought Process of a Day Trader

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As you can see, CLNV had a morning spike and then consolidated. Around 1 p.m. Eastern, it hit new highs.

By then I was already interested. Why?

It was a big percent gainer — that always gets my attention.

I looked for news, but there wasn’t a press release. So, I used the StocksToTrade social media search tool to see if there was any chatter. Sure enough, the company had been tweeting about a new facility in India since March 2.

You can see where it started on the three-month chart…

CLNV chart: 3-month, multi-week breakout based on Twitter hype (Source: StocksToTrade.com)

With a constant barrage of tweets from Clean Vision, CLNV slowly ramped between March 2 and March 8.

Before the question comes…

When Is a Green Day a First Green Day?

Technically, it wasn’t the first green day. It had already started spiking a little bit. But with first green days, we’re talking about the biggest volume, the biggest spike, and the best catalyst.

What was the catalyst? Believe it or not … the company’s tweets. What did the tweets contain?

All those tweets created a sketchy news catalyst for CLNV. Even without a press release, company Twitter hype works in 2022. Welcome to penny stocks.

CLNV Trade Review

Let’s get to the trade and I’ll explain my thought process as it was happening. First, here’s the chart with my entries and exit…

CLNV trade with entries and exits
CLNV chart: 3/8/22, when to add vs cut losses on a first green day (Source: StocksToTrade.com)

I tried to wait until nearer the close. My usual way of trading a first green day is to buy near the close and hold overnight. But it was a high of day breakout and I didn’t want to miss it.

It’s also important to understand how I was feeling based on my personal schedule…

I’m trading from a weird time zone right now. I missed the first part of the trading day and felt crappy about missing big energy plays like INDO, CEI, and IMPP.

So I was feeling a little guilty. I didn’t want to miss another good opportunity.

My guilt — combined with the setup and high-of-day breakout — convinced me to come out of retirement.

My goal was to sell into the $0.07s or $0.08s. Instead, CLNV only reached the high $0.06s before pulling back.

This is where it pays to know how to adapt… 

My #1 rule is to cut losses quickly. So why didn’t I cut losses when CLNV dropped?


My Thesis Was Intact

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CLNV fit the OTC first green day pattern to a T. (Plus, I actually felt better buying the dip.)

It’s important to note that when I bought the dip, I adjusted my goals. I wasn’t thinking $0.07s or $0.08s anymore because it would have to break out again. My new goal was the high $0.06s or $0.07s.

I was prepared to hold CLNV overnight. But then the company CEO tweeted a picture of himself with two people from Hyderabad, India. The tweet said…

“[…] Nothing happens in India in renewable energy that they don’t know about. I’m signing off, big day tomorrow.”

My first thought was…

What does that mean? Does it mean a big day for him and these two renewable energy experts? Does it mean a lot of meetings or a press release?

The truth is, the answers to those questions don’t matter. What matters? The market’s reaction to the tweet.

CLNV ramped into the close. Since the market was ugly and the trade came close to my goals, I sold when it double-topped near the previous high of day. The outcome? +$3,371 in profit.

Trading Is More Than Patterns

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Wealth is in the nuances. Anyone can learn patterns. But the nuances can turn you into a formidable trader.

That’s why getting inside the head of a successful trader can make all the difference.

If you want more information on my thought process…

Apply for the Trading Challenge Today 

Every week I make video lessons reviewing trades. During live webinars, you get to ask questions. You’ll even see me trade while I explain my thought process in-depth, in real time. It’s a powerful way to learn the nuances of trading penny stocks.

Want more ‘inside the trade’ posts? Comment below. I love to hear from all my readers! 

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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

* 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”