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Trading Tips-Tim Sykes Penny Stock

Where To Look Before Everyone Piles In

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Written by Timothy Sykes
Updated 1/28/2026 4 min read

Every day, the market hands us life-changing trades.

We don’t even have to catch the entirety of each move. Just a fraction of the right stock spike could flip our account from broke to baller.

And it can happen faster than most people think …

The problem is, most people spread themselves too thin. They watch too many tickers, pour through piles of headlines, and scour sketchy chat rooms to try to gain an edge.

You’re working too hard.

Already this week, I alerted multiple stocks hours before the crowd piled in. They each became some of the day’s biggest runners.

  • This isn’t luck.
  • It’s not rocket science.

My millionaire students and I use a repeatable process to find the best trade setups everyday. No multi-page watchlists, no media headlines, and we’re definitely not blindly following chat pumps 😆

Feeling burnt out? Spread thin? And still missing the biggest runners?

How I Find The Hottest Stocks Every Day

The strongest stock spikes exhibit a specific set of factors.

Every day, thousands of stocks move in the market. With these few factors, we can whittle down that list to a handful of runners to choose from and possibly trade.

If a ticker doesn’t check these boxes, skip it. It’s not worth risking our account.

With this process, you might find that you’re trading less than you were previously, that’s good.

This market is volatile. And there’s a lot of opportunity. But that doesn’t mean we’re trading all the time.

The best traders wait for the perfect moment to strike. Where risk is at a minimum. Then they rinse and repeat on the next setup.

Here’s what we’re looking for every day:

  • Cheap share prices: Small caps move the fastest.
  • Volume above 1 million shares: We want real demand, not an illiquid spike.
  • Float below 10 million shares: A low supply fuels giant squeezes.
  • Fresh catalysts: Earnings, PR, contract wins, filings, sector sympathy, short squeeze momentum.
  • Already up 20% on the day: A stock that spikes 20% can spike higher.

Anything outside this framework is a distraction.

As a perfect example: ENvue Medical Inc. (NASDAQ: FEED) spiked 190%* on January 28.

StocksToTrade flagged it during premarket. The spike hit our scans before the opening bell. Look what happened next.

On the FEED chart below, every candle represents one trading minute:

FEED chart intraday, 1-minute candles Source: StocksToTrade
FEED chart intraday, 1-minute candles Source: StocksToTrade

StocksToTrade shows the float is only 1 million shares. It traded more than 250 million shares on the day. The company announced a distribution agreement with U-Deliver. And the rest of the factors are evident on the chart.

It’s a cookie cutter stock spike that we see over and over again.

Early on, you don’t need to find these setups on your own …

We Outsource The Heavy Lifting

Most traders burn out trying to read every headline and babysit 50 tickers. That’s a losing game.

StocksToTrade funnels all of the market’s hottest catalysts into one place.

And FEED is only the latest runner that StocksToTrade alerted. It also alerted these three stocks a day earlier, on January 27:

These alerts save traders time while they learn the process.

As you might have noticed, the strongest stock spikes are also quick. Timing is everything.

Faster information is the difference between chasing and leading these moves.

Until you learn to recognize the best setups in real time, use StocksToTrade to find the strongest stock spikes every day.

I’m a millionaire trader, and I still use StocksToTrade to find these plays. It saves me time even after two decades in the market.

Work smarter. Not harder.

Cheers

 

*Past performance does not indicate future results



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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”