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Should We Worry About A Market Crash?

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Written by Timothy Sykes Reviewed by Jack Kellogg Fact-checked by Ellis Hobbs
Updated 3/7/2025 5 min read
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Here’s how we left the market last week …

On the S&P 500 ETF Trust (NYSE: SPY) chart below, every candle represents one trading day:

SPY chart multi-month, 1-day candles Source: StocksToTrade

There’s no denying it, we’re on a bearish trajectory. And investors are fearful of another selloff.

The recent downturn in the U.S. market is attributable to three major catalysts:

  1. Trump’s tariffs and the resulting trade war with multiple major and global trade partners.
  2. The tech threat from China after its DeepSeek innovation.
  3. And I think a general selloff was already in the works due to the insane bullish momentum we’ve seen over the last two years.

Are we at the bottom of the selloff?

I don’t know. Nobody knows.

In our current environment: One day, the U.S. is threatening higher tariffs, and the next day, the tariffs are postponed for an entire month.

There’s a lot of uncertainty right now.

I’m here to set your mind at ease …

We don’t have to worry about the larger market selloff. Here’s why:

The Game Is Rigged

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  • “Is the market going to crash?”
  • “Should I get in now and wait for a rally?”
  • “Should I sell my positions and get back in when it dips even lower?”

These are common questions that traders have right now.

And they’re all the wrong questions.

In the time that it takes you to ponder your next market decision … Wall Street algorithms are exchanging millions of shares with sophisticated strategies and, in some cases, with access to order transparency.

Not to mention, privileged news notifications to learn of global updates before the larger public has any idea of a big story that’s about to hit the market.

Should you worry about the larger market?

Yes. But you should have been worried way before this market dip in 2025 😆

Don’t worry about a market crash. Instead, worry about your own ability to profit!

As small-account traders, the game is rigged against us. Wall Street preaches long-term assets like mutual funds and CDs to help us build wealth … All while lining their pockets with our gains.

Then, they hawk news stories about market crashes and tell us where to put our money so they can do it all over again!

Friends, stop the madness. Let Wall Street worry about a market crash.

We’re focused on much juicier fruits.

Where To Make Money In The Market

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My millionaire students and I look for calculated trades on the market’s hottest stock spikes.

  • The shares are cheap, so we can build larger position sizes.
  • And the spikes can easily reach over 100%.

That’s a perfect combination for traders with small accounts.

For example, last week, Plus Therapeutics Inc. (NASDAQ: PSTV) spiked 750%*!

The price ran from $0.35 per share on March 5, to $2.57 per share during premarket hours on March 7.

Yes, I know … Wall Street hates penny stocks. We’ve all been taught to steer clear of the volatile penny stock sector.

Here’s why:

  • Wall Street can’t trade penny stocks because there aren’t enough shares available for their billion dollar position sizes.
  • And if we trade penny stocks on our own, none of the money will go to Wall Street fat cats.

Now you’re seeing the market for what it really is … Take from the poor and give to the rich.

But not for me and my millionaire students. We’re flipping the script!

Meet my newest millionaire student below, Clay:

I have dozens of millionaire students by now. They come from all walks of life and have different initial account sizes.

But notice … We all trade the cheapest stocks in the market. PSTV never spiked above $3 last week.

You don’t need a ton of money to learn this trading process. Just buy one share in the beginning! You can even paper trade …

At the end of the day, there’s one thing that you need to do to grow your account in this market:

Stay disciplined and follow the process!

All of my millionaire students learned to trade stock spikes from The Challenge.

Follow their lead. And don’t worry about the larger market selloff.

Cheers.

*Past performance does not indicate future results

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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”