Breaking News-Tim's Trading Challenge

20-Year Old Student Makes $110 Million In 3 Weeks On Meme Stock

Written by Timothy Sykes

Updated 9/4/2022 2 min read

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Bed Bath and Beyond (BBBY) has become the crown jewel of the stock market this week…

…trading more volume than any other stock in the entire market, including the SPY!

And while you may have heard about the catalyst to its recent run-up, GME Chairman, Ryan Cohen picked up 9.4 million shares and 1.6 million call options, causing a massive short-squeeze and Supernova in the process…

…there’s one story that hasn’t been talked about much.

And that’s the story of Jake Freeman, a 20-year old college student at the University of Southern California, who accumulated a 6.2% stake in BBBY.

Using his TD Ameritrade and Interactive Brokers account he built a $27 million position in late July. He cashed out of his position on Tuesday for a reported profit of $110 million.

Yes! He did this all with a retail brokerage account.

And here’s how it played out for him.

Jake got the money from friends and family, who I’m sure are thrilled about his Supernova returns.

More Breaking News

I love hearing stories like this because it just shows how much opportunity there is.

Its Supernova season…and meme stocks are hot right now.

It doesn’t matter how young or old you are, the current market offers opportunities for life-changing wealth.

And while the move in BBBY is probably over for now…

Another one is waiting around the corner.

The best place I’ve found to catch fast-moving stocks is the StocksToTrade breaking news platform. Not only do they deliver the news fast, but they outline the catalysts and give color. This allows me to make quick decisions without having to do my own news search. I trust them that much.

There are more Supernova’s like BBBY on the way…

Will you be ready for the next one?

I’ve helped over 20 of my students become self-made millionaire traders. If you’d like to discover the process that took them to the next level, click here to find out 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 (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”