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Trading Lessons

How I spotted this +568% One-Day Gainer

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Written by Timothy Sykes
Updated 6/22/2022 5 min read

If trading was baseball, I’d consider myself a contact hitter, aiming for singles and doubles.

However, when you make as much contact on the ball as I do, occasionally you’ll hit some home runs.

And that’s exactly what happened yesterday in the market…

Now, if you’re only trading NYSE and Nasdaq-listed stocks … then you probably didn’t even see this trade … let alone capitalize on it.

Thankfully, the StocksToTrade platform contains a unique tool specially designed for active traders … and it caught this one early…

Take a look at Clubhouse Media Group Inc (OTC: CMGR).

This isn’t some mystical tool only financial institutions can use.

It’s available to anyone of any experience level.

And I’m going to show you how I use it every day to find setups just like CMGR.

Once you see how it’s done, you’ll be able to locate potential movers before the market even opens.

Markets Open Before They Open

tim sykes in yosemite
© Millionaire Media, LLC

Early on in my trading career, I realized there were enormous opportunities in premarket.

There were stocks that had news releases, sending them soaring tens if not hundreds of percentage points in minutes.

Back when I started, news feeds were hard to come by. And even if I could get the news, the spreads and costs to trade in the premarket were cost-prohibitive.

Today, technology and brokers have made this far more accessible to retail investors like you and me.

And I think the greatest tool available is our Breaking News chat room on our StocksToTrade Platform.

This feed isn’t just news pushed without any context.

Our Breaking News analysts go through the news and highlight what actually moves markets.

You can see how that came through the feed below.

Not only did the analysts explain the news and provide links, but they also highlighted Twitter pumps along with what’s going on in major chat rooms.

This information is extraordinarily valuable when it comes to trading the news.

It works both premarket and during the regular session.

The chart below highlights where the team broke the news and how far it ran thereafter.

Even though the news broke at 9:36 a.m. Eastern, I was able to use this news to enter a trade just past 11:00 a.m.

Here’s what’s neat about the trade I took.

I didn’t have to try and force an entry. I simply had to wait for my setup to happen.

The bullish trend that underpinned the move was more than enough to give the stock a nice bounce that I used for some quick profits.

Not All News is Created Equal

Tim Sykes giving top tested trading tip from Venice, Italy 2021
© Millionaire Media, LLC

One thing to keep in mind is that not all news is the same.

There’s a difference between a company that announces results of a drug trial and one that talks about the CEO speaking at a conference.

A good example is Kraig Biocraft Lab Inc (OTC: KBLB). I traded the stock earlier this week on news the company achieved the desired results in its spidersilk products.

In this case, the market didn’t react much when the news hit the wire.

That gave me an additional catalyst for a morning panic trade as I expected more buyers to come into the stock as they digested the news.

Around 8:30 a.m. Eastern, there are usually a lot of press releases that get dropped, especially by promoters.

I read through the ones I’m interested in to make sure they aren’t garbage announcements.

The Breaking News Team is great at pinpointing the ones worth checking out. Plus, as the earlier image showed, they’ll highlight any pumps from promoters on Twitter or in chat rooms.

It takes some practice to decide which news is worthwhile.

A great question to ask yourself is whether the information is new?

I see plenty of press releases that highlight some event that’s been well-known for months.

They use this to pump up a stock in the premarket.

That’s fine by me since these are great to use for morning panic buys.

Now, I’m so confident that you’ll love this service that we offer a 2-week trial for less than $2 a day.

Do yourself a favor and see what opportunities await.

Click here to access this special offer.

—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

* 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”