timothy sykes logo

Penny Stocks News

How I Plan To Trade This Supernova

Timothy SykesAvatar
Written by Timothy Sykes
Updated 4/4/2023 7 min read

I often find myself repeating the same message, like a broken record, as many traders choose to ignore my advice, believing they know it all…

But when they experience the harsh reality of trading, they come to me looking for help.

The market is unyielding and indifferent to our feelings or thoughts…

And with over 20 years of trading experience, I have learned from my mistakes so that you don’t have to.

I don’t intend to sound conceited, but I have lived through both good and bad times, and I know what to expect from the market.

Yes, maybe my strategies may sound boring to hear as I tend to trade the same pattern over and over again…

But the truth is, it works!

If you are struggling to identify some of the best opportunities in the market, maybe you’re looking into it too much…

Instead, I encourage you to scale it back.

You don’t need to make fancy trades to profit…

Because at the end of the day, we all have the same end goal…

To make money.

So here is why I like to keep it simple and here’s my plan to tackle this latest Supernova.  

You Must Have Patience

Maybe you’ve heard of the saying, “Slow and steady wins the race…”

The same rule applies to trading, regardless of what the market is doing.

I’m constantly reminding students that you aren’t going to become a millionaire overnight…

Trading is all about having patience and knowing what is required of you if you want to succeed.

I have yet to have a student become my next millionaire simply by winging it.

Most traders don’t like to hear that they can’t become rich in just a few days…

They believe if they get a few hot picks that’s all they need to help them get on the path to riches.

Wrong.

When a trader gets a “hot” stock, they simply have no idea how to trade them other than to buy and hold…

Then the next thing they know, the stock has plummeted to the ground.

Getting a list of the hottest stocks to buy and hold isn’t what makes you a self-sufficient trader…

Being able to spot your own opportunities and know what to do with them is what makes you a self-sufficient trader.

Since last weekend, I’ve been watching a stock closely…

And I am patiently waiting for my opportunity to jump in.

Have you been able to spot this recent Supernova?

If not, I’ll be sharing with you what stock it is and how I am planning my attack…

But first, it’s important to remember not to…

Don’t Chase

I tell traders all the time not to chase, yet many of them still argue that I should buy this stock if it continues to go up…

The answer is just simply no, I have been in the industry for way too long and I have seen what could happen to those who chase.

I would much rather take quick profits if I was in the trade early on, but if a stock continues to run, I am not chasing…

 

Here is an old video of me explaining why it’s important not to chase…

Instead of chasing, I am waiting for the next opportunity to come my way. 

Way too many times I’ve seen traders buy near the top and then this happens…

FaZe Holdings Inc. (NASDAQ: FAZE)

Post image

Get my weekly watchlist, free

Sign up to jump start your trading education!

FAZE chart 1-day candles Source: StocksToTrade

Cloudweb, Inc. (OTC: CLOW)

CLOW chart 1-day candles Source: StocksToTrade

Most of these stocks are just being pumped up from promoters, chat rooms, or any social media platform…

And every stock I tend to trade will eventually fail and become worthless.

It’s important for you not to think that you just found a diamond in the rough because I can almost promise you that you didn’t.

I don’t know any of these stocks, I am not buying and holding…

I’m always looking to find a prime opportunity to get in and get out in just a matter of a few minutes to nail the meat of the move.

Newer traders may say, “This stock can go Supernova at any time”…

Yes, many of these stocks can go Supernova, and you can profit from them on the way up…

But spotting them may be difficult, and it can be a little riskier if you don’t know what to look for.

Most Supernovas move fast, in just as little of a few days the stock could’ve soared over 1,000%!

That’s why if I do trade a Supernova on the way up, I make sure there is something strong that can help it explode…

But also, it’s important that many of these plays are just giant short squeezes…

Just like Guardforce AI Co., Limited (NASDAQ: GFAI)

GFAI chart 1-day candles Source: StocksToTrade

More Breaking News

How To Trade A Short Squeeze

Trading is all about being able to spot the perfect opportunity…

And when a stock spikes up, the last thing you want to do is chase.

I get it, we all want to know when we should buy, maybe FOMO is starting to kick in…

That’s why patience is crucial because you need to know what to look for and here is what I am planning to do when it comes to GFAI.

Don’t worry about missing a stock that moved 100 or 200% in a day…

At that point you’re already too late, that’s why you should simply be focusing on what to do next…

Wait for it to panic.

It’s all part of my 7-Step Penny Stocking Framework, and when a stock runs up this high, it tends to panic.

As much as I make fun of short sellers, I love how they can create incredibly awesome squeezes as a result of their mass delusions.

They are the reason why we do see many of these stocks go Supernova, and I am thankful for that!

Trading is like playing a game of chess…

You need to know what your next move is going to be, but then when your opponent does something different than what you expect…

It’s time to figure out what to do instead so you don’t get stuck in a position where you’re going to lose.

I’ll see you here tomorrow!

-Tim


How much has this post helped you?



Leave a reply

* 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”