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How To Improve Your Trading Skills In 2 Simple Steps

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Written by Timothy Sykes
Updated 12/5/2022 9 min read

When you wake up in the morning, what is the first thing that crosses your mind?

Are you wishing you didn’t have to go to a job that you hate? Are you concerned about your financial situation during the Holiday season?

However you feel each morning, there is one thing in common that all of us are thinking of today while reading this…

And that is we all want to make extra money! 

Now, I don’t want any of you to think this is something that you’ll get rich quickly from, but there are those opportunities that can really accelerate your portfolio. 

Last week we saw the biggest Supernova of the year, allowing traders to make 46 times their money in 2 days!

Let’s say you are starting with $5,000 in your trading account and you placed a $500 trade on this Supernova…

You could’ve potentially added over $20,000 to your trading account right now thanks to StocksToTrade Breaking News.

I know, some of you may be thinking about how you could’ve missed the biggest opportunity of the year!

Don’t worry because there are still several spikers that we are seeing every day that is giving traders a lot of opportunities to profit! 

As you know I can’t divulge all of my juicy secrets here, but there are two key things you need to focus on that can help you better prepare yourself in the coming days ahead.

So if you want to know how you can profit in this market, buckle up and let’s dive in! 

Pattern #1 vs Pattern #2 

When it comes to trading, there are so many different patterns that a trader can focus on…

But why would you want to focus on learning as many patterns as possible when you can focus on the ones that have been working for you? 

Over my teaching career, I taught all of my students to focus on specific patterns that have proven to work.

Don’t believe me?  Here’s the proof.  

Trading is being able to identify these types of patterns and knowing what to expect.

Today, there are two patterns that I want you all to be studying inside and out as these plays are moving fast. 

So let’s dive into the first…

Must Study Pattern #1 – This pattern illustrates the life cycle of pennystocks.  

From start to finish, there are multiple trading opportunities you can look to capitalize on…

But it all depends if you are prepared enough to spot them. 

Now, I bet many of you are wondering how you can spot these before the spike and there are two simple ways you can do that….

  1. Focus on big percent gainers with volume
  2. StocksToTrade Breaking News

Every morning I am looking for a stock that is moving, but then I want to know the reasoning behind it…

It helps me paint a bigger picture as to what’s really happening and if this stock is worth trading.  

I like to trade stocks that have a lot of volatility, I don’t want them moving slowly as I don’t intend to stay in for a long period of time. 

But not only does spotting a big percent gainer give me the chance to find a potential trade, everyone here should be using StocksToTrade Breaking News that alert you about a stock before it spikes!

We have seen that StocksToTrade Breaking News has paid for itself over the last few weeks where we have seen stocks spike 61%, 141%, and most recently 4,550%!

These stocks that get alerted to me may have a big catalyst that can cause the stock to move, so it’s always important to see how the stock is digesting the recent news before you decide to trade. 

Must Study Pattern #2 – This pattern shows us the opportunities where we can still profit on a stock after its impressive run upwards. 

The thing with all of these penny stocks, once they spike, they start to fade back to reality.  

When these types of stocks have reached their peak, there is still some life in them so we can expect the stocks to bounce after a morning panic.

Now, not every single one will have a perfect bounce and I illustrated that last week…

But these types of opportunities require you to be patient and understand the full lifecycle of these stocks. 

With these dip buying opportunities, you will be able to not only profit on the way up, but on the way down…

Until those fade away and we continue to search for other big opportunities every day.  

Morning Spikers

We are seeing a significant amount of morning spikers, along with many multiday runners over the last several days.

I am going to be focusing not only on the two patterns above, but continue to look for additional opportunities for those that continue to spike in the morning.

When it comes to morning spikers, there are a few key things I want you to focus on…

  • Volume – does this stock have the volume to continue its hot run?

I also look for a strong uptrend into the close from the day before, as this could lead to a jump at the open.  I also like to see if it’s a multiday runner.

  • Stock History – Has the stock been able to spike previously?  I always like to look at the overall pattern.
  • News – News can really propel the stock upwards, we just saw that last week when Nestbuilder.com Corp. (OTC: NBLD) soared over 4,000% 

So with all of these things, what are we seeing in this current market? 

Let’s take a look at two that I noticed yesterday…

CGrowth Capital, Inc. (OTC: CGRA)

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CGRA chart 1-minute candles | Source: StocksToTrade

 Global Developments, Inc. (OTC: GDVM)

GDVM chart 1-minute candles | Source: StocksToTrade

Do these stocks sound familiar?  Have they been on your list from when I previously mentioned them over the last few weeks? 

You always want to be sure that you are focusing on big percent gainers every morning…

This can help you spot these early morning spikers and you want to be able to capitalize on them…

But if you are struggling to find a lot of these early market movers, here is a tool that traders can use to help them spot additional trading opportunities.  

More Breaking News

Final Thoughts

Just because you trade a stock more than once, I don’t want any of you to think there is anything wrong with that.  

In fact, I traded this one three times…

It’s not about finding as many trades as possible…

It’s about understanding the process and being able to spot these perfect opportunities. 

We are noticing a lot of early morning spikers that we can potentially profit from early on…

But they are also setting us up for dip-buying opportunities.  

If you are missing the early morning run, be sure to continue to focus on those big percent gainers and wait for that perfect opportunity to dip buy. 

At the end of the day, mastering these patterns and knowing them inside and out will help you be better prepared for your next trade.  

Until next time, study hard! 

Tim

P.S.  Trading is all about preparation and being able to spot these key patterns when they present themselves. Let’s face it, we all make mistakes, and here is the most common mistake beginning traders make and this is what you can do to avoid it! 


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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”