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How To Trade This Current Market

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Written by Timothy Sykes
Updated 1/12/2023 5 min read

Recently I’ve become obsessed with planning ahead of time, that’s why I’ve written recent blog posts “Here’s How I’m Playing All These Hot Stocks Now” and “My Plan For The Next 10 Months” as I think that’s key for you to become my next millionaire trading challenge student.

And today, the overall US markets are down big and earlier I warned my chatroom (get access here) of the downside potential and for everyone to go into protection mode as that’s the key in this choppy market environment that’s long overdue for some more pain for longs, see my new video here I made just to explain that a little more in depth:

Yes, yes, I am the ONLY TRULY safety-first penny stock day trader in the world, except for maybe this guy who is a discipline ninja when it comes to getting out of trades going against him….this legendary penny stock trader cuts losses intelligently rather than quickly, so let it be known that you always have a choice, you can be conservative or aggressive, whatever suits you and your personality…

…although I should warn you that when you’re first beginning it’s FAR easier to be strict with cutting losses quickly and only get more aggressive over time when you have more experience and know how…and it’s FAR more difficult to be aggressive at first and then get all safety-minded later on.

The best part of my several Millionaire Trading Challenge students is not just the millions of dollars that they’ve made, but the fact that they’re self-sufficient and unlike far too many gunslingers who I’ve encountered over the years, they prioritize risk management and safety first as it’s NEVER just about how much money you can make on any one trade, what matters FAR MORE is the risk-reward of that trade i.e. never risk losing everything you have, or even anything close to it, in order to make just a few hundred dollars or a few thousand dollars as there’s SO MUCH shit that can go wrong on any trade, there are MANY reasons why NONE of those gunslingers still trade…as in they don’t trade AT ALL because they lost everything or they trade with such a small account that it can’t even be considered trading, the price they pay for taking on too much risk earlier in their career and losing big.**

This is not to say don’t trade at all in this current market, on the contrary, all this market downside and volatility opens up some solid trading opportunities and you might know this is my favorite pattern of 2018 and I’m waiting patiently for the next example.

More Breaking News

Just be alert and beware that yes, 3 out of 4 stocks do follow the overall market and it doesn’t just matter if a stock is red or green on the day, when the overall markets are down this much it becomes VERY difficult for any of these penny stocks to go truly Supernova like we saw last week, so that dramatically reduces the potential rewards for longs and increases the risks, hence why the overall risk-reward ratio gets out of whack and I say trade EXTRA safely.

And trust me, I’m well aware that my “safety-first” mantra isn’t very popular with traders, I’ve heard all the arguments against it and ye since I’ve been teaching for 10+ years now I’ve seen SO many traders come and go, SO many traders who think they’ve found new strategies that can make them a millionaire quicker than my previous Millionaire Trading Challenge students and every single one of them has failed to become a millionaire and most of them have failed entirely, losing anywhere from 50% to 75% or even 100 to 150% of their capital (yes you can lose more than you put in if you find yourself on the wrong side of a short squeeze i.e. so much for thinking it’s SO easy to just short sell every penny stock pump and dump and you’ll make money eventually when they all come down…NOPE!)**

But I don’t teach to be popular and I actually enjoy putting newbies in their place as I’ve heard all their ignorant assumptions and misconceptions before and it still blows my mind how cocky some newbies are and how little they respect experienced, veteran traders who have been around and seen a LOT more than they have)

So, I want you to read this blog post in its entirety and watch that video lesson I included up above and leave a comment below with what you think…will you play it safe in times like these? Or will you be stubborn and go for home runs and not cut losses extra-quickly? The choice is entirely yours, all I can do is pass down rules, patterns, and lessons that I’ve learned the hard way over the past two decades.

By all means, you choose what’s right for you as ALL my top Trading Challenge students have become self-sufficient so that should be your goal too…just don’t say I didn’t warn you if and when this market becomes uglier and you ignore my warning o be extra-safe.


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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”