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Why Missing The Day 1 Runner Isn’t A Bad Thing

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Written by Timothy Sykes
Updated 1/11/2023 7 min read

Over the last 20 years, I have been in this market, and I have studied it inside and out…

And the most important thing I learned is that you don’t need to be glued to your chair while the market is open to find the best opportunities.

You see, the beautiful thing about penny stocks is that you can see some of the best plays happen on days 2, 3, and 4.

Trading is all about finding what works, and by studying the market, I was able to develop a few trading strategies that can work in any market…

And I want to share it with you today.

If you are wanting to know how you can change your financial situation, even with part-time work…

Here are some steps you can take to help achieve financial success.

Lack Of Preparation 

Preparation is one of the most important steps a trader needs to learn.

90% of traders lose due to a lack of preparation.

Doctors have to study for years before they become residents…

Professional athletes have to practice and train for years before they potentially make it to the big leagues.

But it doesn’t just stop there.

All doctors will still have to do the leg work before they make a diagnosis…

Every professional athlete will have to study films, and continue to practice multiple days a week so they can continue to perform at a higher level than their competition…

And I want all of you to have that mindset today when you are looking to trade.

Turning on your computer and just looking at a stock isn’t going to help you to buy or sell…

It’s just a step in the right direction.

Every morning I have a list of hundreds of stocks that I have traded over the year that I have kept track of…

And I am always preparing myself for my next move.

This market is constantly changing and this is why you must adapt.

Recently we have started to see early morning spikers happen, and once one starts to spike…

More can start to follow.

Just because you missed the initial run-up on day 1 isn’t the end of the world…

You need to be prepared to capitalize on what the stock may do next.

What’s Working In This Market

Since we started 2023, I’ve mentioned that we are starting to see a lot of previous Supernovas start to spike. 

In fact, I am starting to notice several stocks that are starting to spike, especially early in the day.

As we start to see the January Effect come into play, I am starting to see a lot more opportunities.

Remember, if you missed these on day 1, the trade isn’t dead with these penny stocks.

Let’s take a quick look at what is happening in this market so you’re aware.

Biora Therapeutics, Inc. (NASDAQ: BIOR)

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BIOR chart 1-day candles Source: StocksToTrade

Ebang International Holdings Inc. (NASDAQ: EBON)

EBON chart 1-day candles Source: StocksToTrade

Over the last few days, I have been seeing a significant amount of stocks spike on day 1, day 2, and now even day 3!

This is why I encourage all of you to focus on big percent gainers, because even if you miss the first green day…

There could be more profitable times ahead.

Why Day 1 Doesn’t Matter

If you miss the first day a stock spikes, it isn’t the end of the world.

But I always make sure I am prepared for anything that could happen on the first day the stock starts to move.

Let’s face it, none of us want to miss out on any golden opportunity to make money…

And with penny stocks, there could be multiple opportunities for you to profit during their life cycle.

For example, some of you may have remembered my trades on Meta Materials Inc. (OTC: MMTLP)…

I didn’t trade it on day 1, day 2, or day 3…

I actually did my first trade on this big red day where I traded one of my favorite patterns.

Here’s the chart.

MMTLP chart 1-day candles Source: StocksToTrade

This is all part of understanding my 7-step penny stocking framework.

Yesterday I dip-bought Vision Energy Corporation (OTC: VENG) and prior to that trade…

My first trade didn’t happen until December 29, 2023…

You can see all of my traders right here 

But take a look at the chart…

VENG chart 1-day candles Source: StocksToTrade

Notice how I missed several days when the stock was running, but I waited for what I thought was more predictable.

Here was my trade from yesterday where I was able to profit $625.

VENG chart 1-minute candles | *Risked $12,075 In Capital To Profit $625

The first day doesn’t always matter, there will be plenty of opportunities down the road…

And you can see that VENG had multiple dip buying opportunities over its course.

But eventually, we know how all of these plays will end…

With a long kiss goodnight.  

Start Small 

We have so many speculative spikers again, but you must be prepared!

Don’t think it’s game over when you miss day 1…

We haven’t seen these many spikes over the last few months, and we are already seeing a better environment than we saw in 2022.

These morning spikers continue to happen in the morning, so don’t miss what is happening in the chat as these are happening fast…

But remember, there are several other opportunities if you miss the initial start of its run.

I have hundreds of stocks on my watchlist, but they all aren’t worthy of a trade…

So as I plan to be quick on these early morning spikers, and also look for those multiple-day runners that are about to panic.

Until next time.

Study up!

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”