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How You Could Find Trades Like $FUBO

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Written by Timothy Sykes
Updated 5/5/2023 6 min read

I know how frustrating it can be to suffer loss after loss as a new trader…

I was in that same exact position over 20 years ago.

I had no idea where to start, or what to look for…

Then eventually it all started to make sense.  The good news is that over the last 20+ years, I’ve been able to develop a process that has helped me and many of my challenge students know how to spot some of the best opportunities in the market…

And if you’re struggling with where you should start finding trades, then today’s message is for you!

In just a minute, I’m going to break down one of my recent trades and how I found it, so you know exactly what to look for every day the market opens.

So quit guessing on what stocks to trade and keep reading how you can spot some of the best opportunities this week!

Finding The Best Plays

There are thousands of opportunities in the market for you to choose from…

But how do you know which ones to focus on?

I get it, that’s like finding a needle in a haystack…

There’s no way for anyone to look through all of them in a single day…

That’s why it’s important to know how you can eliminate 99% of them.

Here’s what I do…

First, I always use StocksToTrade Breaking News.

It’s been my holy grail for years, and I can’t live without it!

As we all know, I love stocks that have a strong catalyst…

After all, that can be what makes them go full Supernova. 

A few examples of a catalyst could be:

  • Chat room pumps 
  • Earnings
  • Rumors
  • News about company products – i.e) cure for cancer

The list goes on and on…

But knowing what makes a stock move can give you those plays you want to look for.

Second, I always look for big percent gainers.

Most traders with small accounts don’t realize they have an advantage when it comes to trading.

We want stocks that are volatile and have liquidity.

Don’t trade those choppy stocks, stick to those low-float stocks that have the volume that could potentially set us up for something big.

This is how I set up one of my screeners to capture some of the best opportunities, typically those that have spiked over 20% in a day…

  • Volume – over 1,000,000
  • Float – Less than 10,000,000
  • Less than $5 a share

For every stock that fits those categories, I’ll look to drill down into them further and make sure I apply it to my 7-Step Penny Stocking Framework.

On Friday, I didn’t find fuboTV Inc. (NASDAQ: FUBO) by luck, and by catching it on my screener, here’s what I did…

Friday’s Trade

Early Friday morning FUBO was moving pre-market…

And every time I see a big percent gainer and high volume, I always want to take a look at it.

It’s important for everyone to go back and look at multiple time frames to understand how the stock has performed in the past…

And the first thing I noticed was that it was a former Supernova.

Source: StocksToTrade

Back in 2020, FUBO went full Supernova, but over the last year, it hasn’t done much…

And the fact it’s a previous Supernova, I didn’t want to ignore it, so I dug into it a little bit more as to why it was spiking on Friday.

Shortly after looking up the stock, I noticed that it was an earnings winner.

This is a solid catalyst that could really help this stock move.

Here’s the breakdown of my trade.

Source: StocksToTrade

I didn’t buy the stock right as the market opened…

In fact, I was waiting for it to break out from its previous high of day.

Once the stock broke through, I entered my position at $1.47 and sold at $1.59, a profit of 8.16%

I was in this trade for about 5 minutes, and most traders ask me why I sold it so quickly.

I’m always in and out of trades quickly, I’m just looking to take the meat of the move…

I’m not looking to increase my risk by staying in it longer than I have to, and I noticed that it was looking toppy and there was some long-term resistance at the $1.60 mark.

It’s important to know how to sell into strength to prevent you from losing any gains you may have had.

I saw there was a wall of short sellers looking to beat down the stock, so I figured I’d lock in my single and call it a day!

Final Thoughts

If you’re serious about knowing how to find some of the best opportunities you need something like StocksToTrade Breaking News…

But you also need to know what to look for after you spot them.

Trading isn’t just about buying a stock that may be a “hot” pick…

You need to meticulously plan your entry and exit, and be able to spot if the setup is right.

Don’t make the mistake of buying at the wrong time, make sure you know what your next step should be. 

I’ll see you in chat.

-Tim

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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. Read More

* 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”