timothy sykes logo

Trading Lessons

How To Trade Penny Stock Spikes Today

Timothy SykesAvatar
Written by Timothy Sykes Reviewed by Jack Kellogg Fact-checked by Ellis Hobbs
Updated 1/16/2025 4 min read
How To Trade Penny Stock Spikes Today Thumbnail

There are trade opportunities every day in this 2025 stock market.

And you don’t need to be a Wall Street fat cat to profit … 

For example, yesterday, January 16, Biomerica Inc. (NASDAQ: BMRA) spiked 260%*.

The price ran from $0.35 to $1.27.

Traders don’t need a lot of money to get started. Start small and size up your position as you find success.

You could even start by buying one or two shares.

I traded BMRA yesterday for an 11% profit.

Take a look at my trade notes below:

Source: Profitly

I wasn’t the only trader to find this setup …

Take a look at the post below from another trader in our community:

Source

There’s a process that we use to trade the hottest penny stocks in the market.

And I can teach it to you …

How To Approach The Biggest Spikes Today:

© Millionaire Media, LLC

We’re always focused on the biggest stock spikes.

Here’s why: We aim to take the meat of the move. If a stock only spikes 10% on the day, there’s not much meat on the table. And there’s less room for error.

Whereas, if a stock spikes 100% on the day, it’s easier to pull a 10% profit … Or more.

Now … That begs the question: How do we know which stocks will spike +100%??

We look for:

  • Low priced stocks
  • That announce news
  • And are already spiking at least 20% in the day

From yesterday, January 16, BMRA satisfied all of those requirements.

Take a look at the chart below where you can see the news announcement …

BMRA announced that the United Arab Emirates Ministry of Health and Prevention approved its Fortel® PSA Screening Test to detect early signs of prostate cancer.

Every candle represents one trading minute:

BMRA chart intraday, 1-minute candles Source: StocksToTrade

The spike hit 20% before the price crossed $0.50 in premarket hours …

It shot upward after that.

Get the next news alert from StocksToTrade!

How To Trade These Runners

tim sykes in arizona riding on a jeep
© Millionaire Media, LLC

The most volatile stocks in the market can follow popular patterns because people are predictable during times of high stress.

The total life cycle of these stocks is called the 7-Step Framework.

Within the framework there are multiple patterns that we can use to trade.

But today, Friday, January 17, we’re looking for a very specific pattern in the market.

Last weekend I used this exact pattern to trade WISeKey International Holding Ltd. (NASDAQ: WKEY).

Take a look at my trade notes below:

Source: Profit.ly

There’s an information inefficiency every Friday that leads to certain stocks trading higher on Monday morning.

I buy shares when I see this unique price action on Friday afternoon, then I wake up on Monday and sell my position.

Look for this pattern today:

Cheers.

 

*Past performance does not indicate future results

How much has this post helped you?

(0 votes, average: 0 out of 5)
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”