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Patterns To Watch

The #1 Trading Pattern To Learn This Week!

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Written by Timothy Sykes
Updated 8/12/2024 3 min read
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I look for the exact same trade pattern every Friday …

For example, yesterday, like clockwork, I locked in profits from my Friday buy on Marin Software Incorporated Inc. (NASDAQ: MRIN).

The multi-day chart is below with 1-minute candles:

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

This stock is still in play!

Take a look at my trade notes from Friday to Monday:

Source: Profit.ly

I warned all of my students about this trade BEFORE it happened.

This is my blog post from last week with the trade details.

I laid everything out for you!

But I can’t TRADE for you. It’s your job to pay attention and follow these setups.

Don’t worry, this week you’ll likely have another shot.

Use this time to study the correct price action. Because when it’s time to trade on Friday, you don’t want to miss your entry.

Friday Price Action

Now, some of you are thinking, “Sykes, it’s Tuesday. I want to trade TODAY, I don’t want to wait until Friday”.

Heads up: The market doesn’t care about what you want.

As traders, we have to work with what we get. And for those who are just starting to gain traction in this niche, I find that it’s most helpful to focus on ONE setup at a time.

You could try to play every angle in our framework … But you’ll likely get confused. I’ve seen it happen over and over again.

Instead, commit to the Friday trade routine. And once you grow proficient at this one trade a week, you can scale up your process to include more setups.

Burn this price action into your brain before the market opens on Friday!

More Breaking News

Watch the video below:

Pay close attention to our risk assessment on these trades!

It’s always possible for a trade to fail. The pattern that I shared above helps us build SMART positions. And if the trade falls apart, we have a clear process to follow that will help protect our accounts.

I’m not the only person trading with these patterns.

My millionaire students are killing it in 2024, and we still have the holiday season in front of us! Not to mention the most volatile election I’ve ever seen …

It’s very possible that the market’s biggest runners have yet to move this year.

Take a look at my post on X below to understand the immense opportunity for my trading students right now:

 

Recognize these opportunities and get inspired!!

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”