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Trading Psychology

Are You Trading On The Weekends?

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Written by Timothy Sykes
Updated 6/5/2023 6 min read
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After coming off one of my biggest losses in decades, there’s one thing I know for sure…

I won’t be trading aggressively anytime soon.

I know that’s hard for some people to wrap their heads around. If you’re competitive like me, you want to get those losses back quickly.

But forcing trades can only dig you into a deeper hole.

And that’s why if I want any chance of turning it around in the second half of the year, I’ve got to focus on my absolute best setups and managing risk effectively.

That’s why I want to tell you about my weekend trade in the ticker symbol NRXP.

If you’re struggling to find an edge or a good trade in this market, then I think you’ll appreciate my breakdown here.

Not only do I believe this is one of the easier setups to learn, it’s also been working like crazy lately.

Climbing Out Of A Hole

Millioniare Mentor Update Avoid the Slippery Slope
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To lose $27,200, as I did in EFTR a couple of weeks ago, is BRUTAL.

I won’t discuss the trade here, but I’ve discussed it in detail on the blog and the YouTube channel.  

Maybe you’re trying to come back from losses yourself.

It’s nothing to be ashamed or embarrassed about.

But you’ve got to make some changes, some improvements if you want better outcomes.

My downfall has been forcing too many trades and getting aggressive on the wrong plays…and that’s a recipe for disaster.

But I also know what it feels like to trade at a high level…to trade confidently…win…and show others how to do the same.

The key to getting back on track is to:

  1. Stop everything you’re doing that’s not working
  2. Focus on your best setups

One of the quickest and eliminates all the bad habits, trades, and setups you’re losing money in. Think about it like a diet. Most people are told to remove or reduce sugar when they go on diets. That’s sort of what I mean here. If you are not good at trading breakouts, then stop trying to trade them.

After removing the junk, you want to focus on your best setups and try to trade those.

I have several strategies that I like to trade and have made me money in the past and still do to this day.

One of those setups is the weekend strategy.

This specific trade I had last Friday was an absolute beauty.

In fact, I want you to pay attention to it because I believe its a high-probability trade with the potential to deliver abnormal returns.

My Trade In NRXP

Source: StocksToTrade 

On late Friday afternoon, a little after 2 PM ET, NRXP issued this press release:

NRx Pharmaceuticals to Host Corporate and Strategic Update Conference Call on Monday, June 5, 2023

PR Newswire

Fri, June 2, 2023 at 1:19 PM CDT·2 min read

RADNOR, Pa., June 2, 2023 /PRNewswire/ — NRx Pharmaceuticals, Inc. (Nasdaq: NRXP) (“NRx Pharmaceuticals”, the “Company”), a clinical-stage biopharmaceutical company, today announced it will host a corporate and strategic update conference call on Monday, June 5, 2023 at 8:30 a.m. EDT.

And that’s all I really needed to hear.

Biotechs have been hot lately…and NRXP is telling everyone to be on the lookout for what  is likely to be good news.

After all, why would you want to alert someone on the news if it isn’t positive?

From a risk-to-reward standpoint, I liked the trade.

Also, I noticed a trend that these pre-announcements tend to produce bullish outcomes.

More Breaking News

Not long ago, we saw it in the ticker symbols MDGL, VRNA, and HEPA.

My Play IN NRXP

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Of course, when a company makes a pre-announcement, they want to build up hype.

And that’s really the only thing I’m playing for when I take these types of plays.

My play was to get in on Friday, and be out of the trade before they announce.

In other words, I’m playing how I expect traders to react…and have no real opinion on the company.

That’s why my goal is to get out well before it makes its announcement on Monday.

And that’s exactly what I did.

Source: Profit.ly

Pretty solid trade…a gain of over $500 on $2,550 invested.

Final Note

© Millionaire Media, LLC

Apple had its product launch event yesterday. And the stock was raging all day until it released the price of its virtual reality headset.

Betting on how the outcomes of special events will turn out is risky.

I find it better to play the anticipation leading up to the event.

It’s what I did to grab a 21% gain in NRXP.

Good thing I got out before the company announcement because the stock sold off after that.

If you’d like to learn more about my weekend strategy and all the different ways I come up with ways to play it, then you’ll want to watch this. 

It’s pretty incredible. 

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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”