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Trading Tips-Tim Sykes Penny Stock

Inflation is Irrelevant to Your Success

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Written by Timothy Sykes
Updated 7/14/2022 6 min read

Financial networks from CNBC to Bloomberg want you focused on one thing…

Inflation…

let’s face it, that’s where Wall Street meets Main Street.

People feel the immediate impact of inflation on their everyday lives.

What they don’t provide are solutions.

Sure, they’ll drag some talking head to pontificate about what jerks the Federal Reserve members are or how the other political party is the direct cause of expensive bacon.

When was the last time any of them offered a decent trade idea?

Heck, when did any of them talk about a stock and buying it here because it’s a ‘long-term’ hold?

Every day, my students encounter dozens of potential setups.

I’ve taught them how to identify high probability trades using the tools and concepts offered.

Talking heads want you to think there’s nothing out there. And maybe you’ve had trouble finding them on your own.

That’s why I want to show you a simple, easy way to pinpoint quality setups every day.

What I’m about to show you works no matter what you trade, from penny stocks to options. It works for all of them.

Look for Premarket Movers

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One of the best places to find tradeable opportunities is the premarket.

Stocks start trading as early as 4 a.m. Eastern.

Most of the stocks moving that early are already up from news that was released overnight or in the postmarket from the prior day.

In fact, that’s how I found TDH Holdings (NASDAQ: PETZ), my morning trade on Wednesday where I locked in a quick $180 profit.

Most premarket movers have a news catalyst behind them.

This can be anything from earnings to SEC filings for tenders. Biopharmaceutical companies send out press releases for trial results or approvals.

Lately, a lot of tiny electric vehicle companies issue press releases when they secure a large order.

The most popular time for the news to hit is 8:30 a.m. Eastern.

That’s also when many major economic reports hit the tape.

You’ll see a lot of questionable press releases come out at that same time, where promoters hope to bury the details in the information deluge and turn to pumping the stock.

The premarket offers a wealth of opportunity. But you need to be careful.

If you can’t find a news catalyst causing a stock to move, I would be cautious.

I also want my students to learn the difference between good and bad news releases.

As I mentioned before, promoters will send out press releases with little to no new information, hoping to create a buying frenzy.

While that creates tradeable opportunities, it’s quite different from a drug company securing FDA approval.

Our Breaking News Chat is a fantastic resource for market news no matter when it comes out.

We employ a team of analysts with extensive experience sifting through headlines to cover only the ones that create actionable trades.

Plus, they monitor pumps from popular chat rooms and social media.

Get Breaking News for less than $2 a day

Follow Other Traders

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For some reason, people feel it necessary to become profitable traders without any help.

I can tell you from experience myself, and from teaching, that this is rare and extremely difficult to do.

You can dramatically shorten the learning curve by following an experienced trader.

Every week, I deliver loads of content to my students, not because I like to hear myself talk, but because they all come from different walks of life with different skill levels.

A huge amount of my training videos and webinars dig into how I locate potential movers.

In fact, I’ll often hold live sessions where my students can watch me as I move through the premarket and morning sessions.

One of the key concepts I teach them is to wait for the setup to come to you.

While I may identify a dozen possible stocks to trade, I only go with the ones that meet my trading criteria.

Many traders, especially newer ones, assume that because something’s on a watchlist that it has to have a setup.

More Breaking News

In reality, they just have the potential to form a good setup.

Keep a Watchlist

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Every profitable trader I know maintains a watchlist of stocks.

Mine includes former runners, stocks moving in premarket, and others that exhibit potential.

Each morning, I send out anywhere from 2-6 stocks on average that I’m watching for trade opportunities that day.

You don’t need more than a couple of dozen names to find multiple trades each week.

In fact, I know some traders that trade just a handful of stocks for months at a time!

Chances are you can find potential trades but don’t know how to define your setup and execution.

That’s where I can help.

After years of trading the markets, I’ve seen and done it all.

I can teach you how to leverage concepts like price action, support and resistance, and more to create incredible trade opportunities.

Sign up today for my Millionaire Challenge.

—Tim


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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”