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Trading Lessons

Why I Traded AMC

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Written by Timothy Sykes
Updated 5/16/2022 3 min read

Listen up, people! This market is special …

And I mean that in the best way possible. But the truth is, trading’s been tough.

Don’t feel bad if you’re struggling.

Over the past two weeks, I profited $1,837. That isn’t a lot for me.

To put it in perspective, during the same time last year I profited $22,811

If you’re disappointed with your current results — don’t beat yourself up. I’ve been doing this for 20+ years and even I’m underperforming.

It’s because of the overall markets. They’re getting slammed right now. Take a look at the S&P 500 ETF Trust (NYSE: SPY), it’s down 16% since the start of the year…

SPY chart 1-year, 1-day candle (Source: StocksToTrade)

But there’s hope for us yet!

By looking carefully, I’ve been able to find volatility in the market. Keep reading, I’m gonna teach you how…

My AMC Trade

If you’re familiar with my trading, you know I usually like to play OTC penny stocks.

Here’s why … 

But recently, there haven’t been as many opportunities in that niche. So I’ve adapted to follow the volatility.

I’m not worried, OTC runners will come back. It’s just a matter of time.

Learn how to trade these volatile spikers before the sector heats up again.

But while I’m waiting, I can take advantage of other market volatility. Like my AMC Entertainment Holdings, Inc. (NYSE: AMC) trade …

Source: Profit.ly

When I can’t find plays in my favorite niche (OTC penny stocks), I expand my search to listed stocks. Sometimes, I’ll even look for stocks that trade above $5 if that’s where the volatility is.

After minting 20+ millionaire students, I learned that my patterns show up elsewhere in the markets.

I always focused on what I was most comfortable with. But my students have shown me that my strategies are much more versatile than I initially thought.

Take Mark Croock for example. He uses my patterns for options trading.

Or Roland Wolf, he’s always been more comfortable trading listed stocks.

Learn to Trade

There are a bunch of different patterns that traders use.

Here are the ones working for me right now.

But what’s even more important than the patterns is the process I use to trade them.

Once you learn the process, you can apply it to whichever trading pattern you want.

If you’re serious about trading …

Start the journey all my millionaire students took.

Oh, I almost forgot!

I’m going on a live tour with other millionaire traders to answer questions live and in person! Don’t miss out on this learning opportunity. I’m coming to a city near you!

Find all the info right here!

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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”