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Trading Lessons

Our First Trade Setup: New Year’s Resolution

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Written by Timothy Sykes
Reviewed by Jack Kellogg Fact-checked by Ellis Hobbs
Updated 1/2/2025 4 min read

Welcome to the first Friday of 2025!

You have a huge opportunity to trade today …

Plus, it satisfies our New Year’s Resolution.

Let me explain:

Every Friday, we look for the same price action in the market. Our goal is to capitalize on weekend spikes into Monday.

This is a perfect strategy for side-hustle traders. And it helps to pace our account growth (it discourages over trading) … There are 52 weeks in a year. That makes 52 weekend-trade opportunities.

In 2025, show up every Friday! That’s our New Year’s Resolution.

One good trade a week can make all the difference for your account.

For example, last weekend, WiMi Hologram Cloud Inc. (NASDAQ: WIMI) spiked 27% from Friday’s close to Monday.

To put that in perspective, the S&P 500 ETF Trust (NYSE: SPY) gained 20% over the whole 2024-year period …

Here are my trade notes from last weekend:

Source: Profit.ly

This Friday’s Trade Opportunity

This weekend marks the first opportunity to profit using my weekend pattern in 2025.

The price action is always the same!

This pattern repeats from week-to-week because the market is closed on Saturday and Sunday.

Every Friday, there are traders who mentally check-out from the market. Maybe they want to have a long weekend, maybe they only check stocks after the market closes … For whatever reason, there are traders who ignore Friday’s price action and look for plays on the weekend while the market is closed.

That creates an information inefficiency.

More Breaking News

Traders who enter ‘buy orders’ on Saturday and Sunday are late to the game …

We can buy shares of a strong stock on Friday and sell into the ‘buy orders’ that execute on Monday morning.

Last weekend, WIMI was showing us bullish volatility on Thursday and Friday.

It matched my weekend framework so I snagged some shares on Friday and sold them on Monday morning.

Take a look at the price action below, every candle represents one trading minute:

WIMI chart multi-day, 1-minute candles Source: StocksToTrade

You don’t recognize the pattern in the chart above?? Watch my video below! 

This is the strategy that my students and I use to trade Friday runners into Monday:

Stick to our New Year’s Resolution!

This time next year you could be posting yearly recaps like the rest of my students …

See the posts below:

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Happy 2025! Let’s get to work.

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”