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Another Jack Kellogg Trade: $$$

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Written by Timothy Sykes
Updated 8/14/2024 5 min read

Ladies and gentlemen, Jack Kellogg is on fire in 2024!

And he’s teaching other traders how to follow these patterns … 

The 2022 market, and even most of the 2023 market, was slow. But the volatility is back in 2024. And one of my most successful students, Jack, is nailing trades left and right.

Take a look at one of his most recent trades below…

Source: Profit.ly

Thanks for the detailed trade assessment, Jack … lol.

Don’t worry, we’ll explore Jack’s trade on FSD Pharma Inc. (NASDAQ: HUGE) in this blog post to help shine a light on the process that we use.

This is where Jack posts all of his upcoming trade plans.

Also, you might have noticed that Jack was trading with almost $1 million …

You don’t need $1 million to start trading!

Jack started with a small account, like most of my students. And he still trades the same kinds of stocks that he did when he first started to profit.

This process is scalable!

For example, the stock that Jack traded recently, HUGE, it never spiked above $0.50 … You could start trading with $10 if that’s all you’ve got.

That’s the key. Start small and scale up as you gain consistency.

Here’s how Jack and I are trading right now …

Process For Profits

jack kellogg and sykes in italy
© Millionaire Media, LLC

I snagged a profit on HUGE as well.

You’ll notice that my position sizes aren’t anything close to Jack’s. I still trade with a decently small account to help show my students the process.

Take a look at my trade notes below …

Source: Profit.ly

Actually … in some ways my trade was better than Jack’s.

He grabbed 7% from HUGE. I took 11%.

But it’s not a contest! I’m just trying to illustrate a point: It doesn’t matter how much money you start with. What matters is whether or not you understand the process.

Jack and I (and the rest of my millionaire students) trade with the exact same process over and over again.

“But Tim, if it’s the same process, why do you have different outcomes?”

We’re not trading side by side. And even though we use the same patterns on the same stocks, every trader is a little different when it comes to things like …

  • Their preferred entry.
  • Their position size.
  • Their tolerance for risk.

Also, there are often multiple opportunities to profit on a stock that’s following our overall framework. Whether a trader decides to capitalize more than once is up to them …

For example, yesterday, I traded Serve Robotics Inc. (NASDAQ: SERV) three different times.

Source: Profit.ly

These stocks can behave predictably because people are predictable during periods of high stress.

Like when they have a few thousand dollars in a stock that’s spiking +100%.

As traders, it’s our job to take a step back from the emotions of the market to recognize the larger framework.

This is the entire framework that Jack and I use to trade.

A Trick For New Students

© Millionaire Media, LLC

The spike on HUGE was a textbook runner for us …

  • Low priced stock.
  • Spiking with news (it ran 300%* in total on August 9).
  • High trading volume (hundreds of millions of shares).

But finding these stocks and trading them are two different things.

Take a look at the HUGE price action below from August 9 …

HUGE chart intraday, 1-minute candles Source: StocksToTrade

A lot of new students get confused when they try to apply our patterns to the hottest stocks in the market. Because every spiker is a little unique, like a snowflake.

Over time, a trader gains experience and learns how to recognize these patterns and setups. But again, in the beginning it can be confusing and frustrating.

That’s why I was so excited to unveil my AI trading bot earlier this year. XGPT scans the hottest stocks using our exact trading framework.

A trader can …

  • Wait for the afternoon AI watchlist with trade plans.

Or

  • Enter their favorite ticker into XGPT at any time and it will spit out a trade analysis as if they asked me directly.

You don’t need to wander around in the dark anymore!

>> Use XGPT’s AI to shine a light on the market’s most profitable setups <<

There will be more trade opportunities this week!

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”