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The #1 AI Stock This Week

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Written by Timothy Sykes Reviewed by Jack Kellogg Fact-checked by Ellis Hobbs
Updated 10/25/2024 4 min read
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Welcome traders,

I pulled two profits from last week’s AI stock spike!

They were routine trades …

And the stock didn’t even spike as high as it could have. Back in November 2023, the price spiked 50%.

Last week it spiked 30% … and the price is consolidating near the highs.

That’s just one of the signs that it could spike higher …

I’m talking about Upwork Inc. (NASDAQ: UPWK). You can see last week’s price action below, every candle represents one trading minute:

UPWK chart multi-day, 1-minute candles Source: StocksToTrade

The patterns that I use are always the same! I’m going to show you my trade positions on UPWK overlaid on the chart so that you can see an example.

But first, you need to understand that every spike is a little different, like a snowflake.

New traders are at a HUGE disadvantage because they haven’t taken enough time to recognize these plays in real time.

To ensure that you have the necessary expertise:

>> Complete The 10-Day Trading Bootcamp <<

The Bootcamp has EVERYTHING that a new trader needs.

Don’t skip this crucial step! Think about it like this … Would you join a basketball league if you didn’t know the rules??

Probably not.

My AI Trades

© Millionaire Media, LLC

Here was my thought process behind the trade …

The price started to spike on October 23 during premarket as the company announced bullish preliminary financial data for the third quarter of 2024. Plus efforts to further increase value, including:

  • A smaller workforce, translating to an immediate cost savings of $60 million.
  • More automation, relying on AI to increase efficiency.

This is an AI catalyst that shows clear value added … I like it!

Breaking News alerted the trade when it started to move during premarket. I waited for the market to open because the price action was so new.

I saw the stock spike above the pre-market highs and I bought shares on a small dip before it pushed higher.

Here are my trade notes:

More Breaking News

On my second trade, I was looking for a bounce off of a major support level.

The price fell toward $12, I bought shares at $12.09. I added shares at $11.98 to get my average down. And then I sold at $12.10 because I didn’t like the lazy price action.

Here are my trade notes, including timestamps for my average-down:

And here are both of my trades from October 23 overlaid on the chart below, every candle represents one trading minute:

UPWK chart intraday, 1-minute candles Source: StocksToTrade

Now, nobody knows whether UPWK will follow these patterns again this week.

But the chart showed great consolidation into Friday of last week. That, coupled with the news catalyst, and there’s a solid chance that this AI stock pushes higher.

Keep it on your watchlist. That way, you’re prepared for the win.

And remember … UPWK isn’t the only stock capable of following these patterns.

I’m looking for trades from any of the hottest stocks this week!

Not sure where to find these runners??

>> I’ll send you the top trade setups every day – Straight to your phone! <<

You have everything that you need in this blog post … 

  • The essential 10-Day Bootcamp.
  • A trade example that demonstrates a real position on a volatile runner.
  • My daily trade-alert system.

Keep persevering!

Eventually, all of this information will click and you’ll start to see these opportunities in real time, all on your own.

Cheers.

 

*Past performance does not indicate future results

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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”