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Penny Stock Basics

How To Trade Penny Stocks During The Summer

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Written by Timothy Sykes
Updated 2/2/2021 5 min read

Trade Penny Stocks During The Summer

It’s pretty funny to admit, but I didn’t even realize I haven’t had a trading loss in over a month as we head into Summer 2018 and I’ve had some truly awesome picks like buying SNES at .44 before it hit nearly $2/share the next day!  The best time to trade penny stocks during the summer is early on.

I’ve been studying the stock market nearly 20 years now and I’ve also been teaching for over 10 years not too!

And the funny thing is I used to take summers off since there can be some slower trading, but the last few years have been insane with plays galore! And the even better news is that because the best plays coming about less frequently, mixed in along with the lack of trading volume, summer trading can be VERY profitable for a short-period of time if you know the key indicators that matter vs. those that do not.

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And so over the past few years I’ve successfully adapted to summer trading and I want you to adapt too so I’m giving a free webinar HERE on June 21st and if I were you I would register HERE for it ASAP as I think we’re limiting it to just 1,000 people…

Here’s a video I made today explaining a little bit more on this subject:

I had a trade yesterday on DEST that I nailed the entry on in the low 4s before it spike later day into the mid 5s, but it didn’t do what I wanted to a T when I wanted so I exited safely…and that is one of the many rules I’ll be teaching on this free webinar as you MUST change your trading strategies, just a little bit at least, during the slower yet more volatile summer season.

Because I see a BIG problem with far too many traders NOT adapting to this new season of the year and so they miss out on opportunity after opportunity and it makes me sick…some people think losses are the worst thing, but for me it’s all about un-captured potential and that’s why I’m making this webinar 100% free so you have absolutely NO excuses not to attend!

On top of that I’ll be sending webinar participants a free watchlist with the 10 best penny stocks to keep an eye on over the next few weeks and while I know too many students don’t think you have to prepared ahead on your trades by more than just a few seconds or minutes, I like taking my time and exploring a potential trade from every angle so as not to risk missing one or two key indicators that could be the difference between a profitable and non-profitable trade!

No matter how small or large your account size is, you can NEVER over-prepare, only under-prepare as most traders do and if you’re under-prepared you’ll know once you’re in the trade and you don’t have a detailed plan so there’s absolutely no way you can succeed in the long run without being more meticulous. And even if the dollar difference between a profit and loss is small, well, then go multiply that one positive or negative trade over the course of your career and the consequences of a lack of preparation REALLY add up.

So please don’t make that mistake and tune into my webinar, in which I’ll teach you to learn to adapt to the stock market based on seasonality issues like over the course of the summer and EXACTLY how to create a solid trading plan and how to adapt that trading plan in real-time if need be too!

Never forget this is more of an art not a science. so what works fro me might not work for you and yet it could work for someone else entirely…I encourage you to learn from ALL my top trading challenge students and take a few solid lessons away from each of them and me too.

Because ANY ONE of us could be totally wrong about any stock or investment, it’s our ability to stick to our trading plan and NOT deviate, get stubborn and throw all caution/risk into the win, that is the eventual key to success…

So, please do register for this FREE webinar that’s happening on June 21st and I promise you that you’ll come away from this event with a newfound perspective on summer trading!


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Timothy Sykes

Tim Sykes is a penny stock trader and teacher who became a self-made millionaire by the age of 22 by trading $12,415 of bar mitzvah money. After becoming disenchanted with the hedge fund world, he established the Tim Sykes Trading Challenge to teach aspiring traders how to follow his trading strategies. He’s been featured in a variety of media outlets including CNN, Larry King, Steve Harvey, Forbes, Men’s Journal, and more. He’s also an active philanthropist and environmental activist, a co-founder of Karmagawa, and has donated millions of dollars to charity.
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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”