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When To Buy the Breakout

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Written by Timothy Sykes
Updated 8/19/2026 8 min read

This market is INSANE!

It doesn’t matter what time of day it is, I’m looking for plays.

Morning, midday, noon, afternoon, after-hours…

We are seeing SO many breakouts (and Supernovas).

That said, there are two times of day when I am absolutely dialed in.

It all kicks off at 4:00 a.m. ET…

Watch For Premarket Breakouts

Whether it’s a breakout over the previous day’s high, the after-hours high, or the premarket high…

Every morning when you log on to your brokerage account, look for breakouts.

Study the charts of the big movers to find key levels from the past few days (and if you’re up early enough, be ready to buy).

For example, on Tuesday (August 18) I took the premarket breakout on Profusa, Inc. (NASDAQ: PFSA).

PFSA 8/17/26 after-hours to 8/18/26 6:00 a.m. 1-min candles, premarket breakout
PFSA 8/17/26 after-hours to 8/18/26 6:00 a.m. 1-min candles, premarket breakout

I wanted to get in at the breakout over $10, but it was moving too fast. The breakout happened in seconds.

I was happy to get in where I did and take the single.

Outside of that breakout over Monday’s after-hours high, there’s no trade for me on the chart.

Of course I had no idea PFSA would be one of the day’s biggest runners

PFSA, 8/17-18/26, multi-day runner, breakout after breakout
PFSA, 8/17-18/26, multi-day runner, breakout after breakout

It does not get easier than my PFSA trade, okay?

Because at 4:00 a.m. or 5:00 a.m….

Shorts Are On Their Back Foot

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There are SO many overaggressive short sellers who try to stay short overnight and cover lower.

Some of them still believe that “go to zero” is a good strategy (it’s DUMB).

Guess what? With all the short squeezes lately they wake up from their troubled sleep and start covering.

Singularity Future Technology Ltd. (NASDAQ: SGLY) was a good example from after-hours on Monday (August 17) to premarket Tuesday…

SGLY, 8/17 after-hours to 8/18/26, 1-min candles, big premarket breakout
SGLY, 8/17 after-hours to 8/18/26, 1-min candles, big premarket breakout

Shorts covering is at least part of what’s setting up these big premarket breakouts.

I know your time zone makes a difference (and it can be tough).

Right now, though?

I don’t care what time zone you’re in or what’s going on in your life.

If you are up and prepared…

Buy the Damn Breakout

When there are plays, sleep less. Drink coffee (or whatever you want).

Because even though the SGLY chart above looks ugly, there was a perfect opportunity to buy the premarket breakout on Tuesday but you had to be EARLY…

SGLY, 8/18/26, premarket breakout

SGLY, 8/18/26, premarket breakout

I’m fortunate that I’m in Europe right now. Wherever you are, try to be up.

There’s not always going to be a breakout (sometimes you wake up and then go back to bed).

But if you’re there, you have to give it a shot.

I’m not going to lie and say…

“Oh, it’s just so easy. The stock is just going to wait there for you.”

That’s not how trading works.

It’s a Question of Preparation

I know that it’s fast, but this is the market right now.

Some people aren’t prepared. They’re logging into their brokerage account or trying to get coffee.

Speed gets rewarded in this market. My PFSA trade above took only seven minutes.

SGLY? Six minutes.

Six or seven minutes isn’t long (so you MUST prepare ahead of time).

The key is…

You’ve GOT to be there when there’s price action, volume, and volatility.

Do your best to be there, at least to witness it. And If you miss a breakout, don’t worry…

There’s another play around the corner.

Millionaire Moves

If you have ANY question about how crazy this market is…

Moderna (NASDAQ: MRNA) nearly doubled yesterday, spiking from the $62s to $117 in 20 minutes on positive cancer vaccine news.

We’re talking about a $25B company becoming a $50B+ company… in 20 minutes!

Do you understand how INSANE that is?

Wait, there’s more: By 11:00 a.m., MRNA was trading in the $160s…

MRNA, 8/19/26, 1-min candles, premarket breakout
MRNA, 8/19/26, 1-min candles, premarket breakout

MRNA is a little rich for me, so I didn’t trade it (I’ll stick with penny stocks).

That said, you could’ve bought the premarket breakout for solid gains…

MRNA, 8/19/26, 1-min candles, premarket breakout
MRNA, 8/19/26, 1-min candles, premarket breakout

Or you could have traded the breakout over premarket highs after the open.

There was more than one opportunity to trade it.

Whether you trade large-caps like MRNA, or penny stocks…

Now is the time to…

Learn To Trade Expanding Hours

Yes, expanding…

If you think things are crazy now, with so many premarket and after-hours breakouts, get ready:

Nasdaq just confirmed 23-hour trading starting December 6.

Source: euronews via yahoo!Finance
Source: euronews via yahoo!Finance

I’ll write more about it closer to the date.

In the meantime, I urge you to learn how to trade extended hours NOW.

Today, the best way I know to help prepare you is…

The Night Tape

When you sign up for The Night Tape, you’ll receive my after-hours watchlist (1-3 stocks with the potential to run) every trading day after the close.

The email includes a trade plan.

IMPORTANT: After-hours trading is not the same as regular hours. There are things you need to know before you make your first after-hours trade.

So, I’ll also give you instant access to my after-hours guide called “The Second Session.”

Get My Free After-Hours Watchlist PLUS: “The Second Session” Guide

On My Radar

Study Breakouts, Study Extended Hours, Study HARD!

The kinds of opportunities we’re seeing right now are unlike anything I’ve seen in my 25+ years trading.

But do you know what hasn’t changed?

The process.

It requires time, commitment (maybe a little obsession)…

And the ability to overcome obstacles.

The big difference is, almost everything in the market is faster right now.

You still have to learn, but you can compress the time thanks to the market.

Now go study. Hard.

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”