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Trading Lessons

Don’t Trade Without a Pattern — These Work for Me Right Now

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Written by Timothy Sykes
Updated 4/20/2022 4 min read
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It’s possible to make money day trading right now.

That may not seem obvious to some. Those who are trading the wrong patterns or refusing to adapt to the choppy markets are getting annihilated.

But there’s a bright side. Just look at my account, for example. I’m up over $64,000 in profits so far this year. And we know the market hasn’t been great…

Source: Profit.ly

If you’re having trouble, don’t panic. I can help.

First off, are you trading without a pattern? That’s a recipe for disaster.

Even if you are using a pattern … are you sure that pattern works in this market?

I’ve been in this industry for over 20 years. That’s long enough to know that patterns come and go.

Here are the top day trading patterns I’m playing right now…

Trading Pattern #1: Morning Panic Dip Buy

how to calculate relative volume
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First and foremost, I must introduce you to my all-time favorite pattern — the morning panic dip buy.

But also remember that all traders are different, so what works for me might not work for you.

I have 20+ millionaire students right now, and we all trade a little differently. The idea is to expose yourself to as many strategies as possible until something clicks.

I’ve written about this O.G. strategy … Read about the morning panic dip buy right here.

And for an example, look at this recent trade on Elektros Inc. (OTCPK: ELEK). It’s a great example of this pattern can work even in an ugly market.

I often say I trade like I’m retired. So a setup must be so good that it pulls me out of retirement. That’s exactly what happened with ELEK.

Source: Profit.ly

Pattern #2: First Green Day

Here’s another classic strategy I use during slow and hot markets alike: the first green day spiker.

Again, I’ve already got a post you can learn from. Click here to learn more about the first green day setup.

And for proof that it works in this market, here’s a trade I made last week on Lithium Corporation (OTCPK: LTUM) for a $3,803 profit…

Source: Profit.ly

More Breaking News

Now that you’ve seen the potential, it’s time to get to work. Study these setups and…

More Day Trading Patterns

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There are tons of options out there for traders.

I’m just one trader who has found what works for me. Maybe we trade the same patterns, maybe not.

That’s why I try to expose my students to as many opportunities to learn as possible.

First of all … check out my post on 9 different trading patterns newbies should know.

Also, my good friend Tim Bohen, lead trainer at StocksToTrade, has a unique pattern he trades in the afternoon. He calls it his 2 p.m. “cash appointment.” Learn all about Bohen’s favorite pattern right here — for ZERO cost. 

I’d be doing you a disservice if I didn’t mention my Trading Challenge. All my millionaire students started there and eventually became self-sufficient traders. If you’re looking for a future in stock trading…

Check out the Trading Challenge here.

There’s no time like the present. Come join the party.

Do we trade any of the same patterns? Comment below if you’ve got a strategy I should look at. Let’s help each other learn!

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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”