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Election Trades: My Top Stock!

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Written by Timothy Sykes Reviewed by Jack Kellogg Fact-checked by Ellis Hobbs
Updated 10/28/2024 3 min read
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Welcome traders,

This week, on Monday morning, I sold my shares of one of the most volatile election stocks in the market.

This is a company that’s related to Donald Trump and his political race. The price has a history of spiking when Trump makes key victories.

And as we approach the November 5 election, the volatility is going bonkers!

I’m talking about Phunware Inc. (NASDAQ: PHUN). The price spiked 330%* in October!

And I’ve already followed a textbook trade pattern to profit more than $3,300 from this run … Take a look at my trade notes below:

Source: Profit.ly

I’m not the only trader who’s banking on this run!

See the posts below from traders in our community:

Source
Source

Again, this was a textbook trade setup.

And for the rest of this week, I’m looking for the exact same price action from PHUN.

In today’s blog, I’ll show you my exact position overlaid on the chart so that you’re prepared for the next move.

Let’s get to work! There will be more profit opportunities this week …

Election Trades

If you’re nervous about this election volatility …

The biggest opportunity isn’t until AFTER the election.

You’ve still got time to learn this setup before we hit November 5!

>> Join my LIVE trade-briefing session TOMORROW, October 30 <<

More Breaking News

Now, for anyone interested in pre-election setups …

Here’s how I played PHUN:

First of all, I knew that it was a hot stock related to Trump. The price ran 330%* over multiple days in October as we approach November 5.

The stock’s recent AI news also stuck out to me. This ticker essentially has a foot in the two hottest sectors right now: AI and the U.S. election.

The price rallied last Friday with bullish momentum, but it consolidated into the close rather than breaking higher.

That was a key signal that matched my weekend framework.

Take a look at my position overlaid in the chart below. Every candle represents one trading minute:

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

There’s still time to capitalize on the stock’s volatility this week.

Plus … The election isn’t until NEXT week. Which means that we could see this EXACT pattern on PHUN again this Friday.

>> Study My Friday Pattern <<

Get ready for the next big move from this election stock!

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”