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Trading Lessons

Stop Arriving Late To The Trade!

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Written by Timothy Sykes
Updated 8/13/2024 4 min read
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There were solid trade opportunities on Monday and Tuesday of this week already …

And these spikes are far from random.

In both cases, there were specific news catalysts that lead to the massive stock spikes.

We got an alert from StocksToTrade for the GNLN spike. The company announced a new license to be the exclusive distributor of Safety Strips in the U.S., take a look at the notification we got below.

Every candle represents one trading minute:

GNLN chart intraday, 1-minute candles Source: StocksToTrade

Get the next Breaking News announcement!

And on Tuesday, CXAI announced its largest deal yet to expand its business operations with Google Cloud.

These spikes are not random. And traders who recognize the cause and effect are welcome to daily profit opportunities.

For example, there will be opportunities like GNLN and CXAI today …

The Next Stock Spike

© Millionaire Media, LLC

Every day I wake up and scan the market for the hottest stocks.

There are a lot of tickers moving in the market every day, but only a few will actually give us solid opportunities to profit.

GNLN and CXAI were perfect examples already this week. And both of these stocks could still give us trade setups as the price consolidates.

But it pays to have eyes on the spikes EARLY.

See, volatile stocks like to follow a specific framework in the market. It’s based on human psychology, because people are predictable during times of stress.

Read my post on X below for more details:

The earlier that a trader finds these spikes, the more framework they have to trade.

More Breaking News

This is the framework that my students and I use to trade stocks.

Essentially, a trader can …

  • Pull up the Breaking News scan.
  • Wait for the next spiker.
  • Watch for it to match our trade pattern.

It’s easier said than done, but there IS a process for profits right now.

I’m not the only trader making money in this environment …

One of my most successful students, Jack Kellogg, just locked in a massive trade during an otherwise ‘sketchy market’.

See his post on X below:

Use Jack, my other millionaire students, and myself as inspiration on your journey as a trader!

There’s a whole community of us growing step by step each day.

Get a glimpse of our Challenge chat below:

Source: Profit.ly

Interested in our trading community??

Join the next livestream to get a feel for it.

There’s no pressure to trade, this is about healthy growth as a trader!

Cheers.

 

*Past performance does not indicate future results

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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”