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Trading Tips-Tim Sykes Penny Stock

How To Catch The Next Weekend Runner

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Written by Timothy Sykes
Updated 3/26/2024 4 min read
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I use a very specific market pattern to profit on Friday afternoons.

Some people are thinking: “Tim, today is Tuesday, I don’t want to wait for Friday. I want to profit today.”

To that I have two responses:

  1. The market is closed on Friday, March 29. Thursday is the new Friday.
  2. Don’t be so greedy. Emotions can cause us to make poor trading decisions. Learn this strategy ahead of time and get ready for Thursday.

You don’t need to trade all day every day to make a profit in the market. In fact, one of the benefits to trading is that we can focus on the hottest times without giving up our whole lives for stock market profits.

Last Friday afternoon I pulled 8% from Canopy Growth Corporation (NASDAQ: CGC). And I watch every Friday afternoon for the same pattern.

With a starting stake of $21,420:

Source: Profit.ly

There was 70% on the table, here’s a chart …

CGC chart intraday, 2-minute candles Source: StockToTrade

I’m proud of my 8% profit! But some of my students did even better. Take a look at my Tweet below:

Thanks to the shortened trading week, I expect this Thursday’s plays to be even bigger.

These setups are perfect for small account traders. The price spikes big and the shares are cheap. For example, CGC never traded above $8 intraday. That means we can load up on shares and ride the percent gain for substantial profits.

Here’s what to look for:

The Friday Play

© Millionaire Media, LLC

It starts with a big Friday spike. I’m not trying to predict which stock will run. That’s a fool’s game. Instead, I wait for the stock to come to me.

By the time I bought shares of CGC on Friday, the price had already spiked 59%.

We’ve seen stocks spike +100% intraday. So if you come across a penny stock that seems overextended intraday … there’s a chance it pushes further with the right price action.

More Breaking News

We need the chart to match a certain pattern before we can make a decision to buy shares.

At the end of the day, penny stocks can still be dangerous. That’s why we use patterns to focus on the best setups.

This is the Friday strategy I used on CGC.

Originally, the pattern is meant to identify strong Friday price action, to buy with a proper risk/reward ratio, and sell into the Monday morning spike. The hype usually builds over the weekend.

But in this hot 2024 market, we’re seeing weekend plays push to new highs before the market closes. The bullish momentum is off the charts!

And the advantage of our small-cap niche right now is that we see bull runners every day. By contrast, the larger market is worried about where the S&P 500 ETF Trust (NYSE: SPY) is going, whether the tech sector will continue, blah blah blah.

I’m not here to predict the volatility. I’m here to react to it.

Remember my trade on CGC. I waited until the stock had already spiked 59% … Then I planned my entry.

To see this trading process live:

Join my next trading webinar.

My millionaire students and I hold trading live streams all week long. There’s no excuse to sit on the sidelines!

Attention: I’m giving a BIG Wednesday livestream for all my students. Clear your schedule and bookmark this link.

Start studying.

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”