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Trading Lessons

Learn This Profitable Balance

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Written by Timothy Sykes Reviewed by Jack Kellogg Fact-checked by Ellis Hobbs
Updated 1/18/2025 5 min read
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The stock market is volatile right now.

We’re seeing +100% spikers every week among low-priced stocks.

And we even see this volatility in the larger market …

Look at the choppiness of the S&P 500 ETF Trust (NYSE: SPY) on the chart below, every candle represents one trading day:

SPY chart multi-month, 1-day candles Source: StocksToTrade

As a result, we’re seeing stock spikes at all hours of the day.

Last week:

  • Safe & Green Holdings Corp. (NASDAQ: SGBX) spiked 250%* during premarket hours.
  • BIO-key International Inc. (NASDAQ: BKYI) spiked 140%* during regular hours.
  • Nukkleus Inc (New) Com (NASDAQ: NUKK) spiked 50% during after hours.

I got a little sloppy because I was trying to stay up at all hours to try to profit from these runners.

But I figured out the best areas to trade right now … And I zoned in on those time frames. It led me to my profit on Biomerica Inc. (NASDAQ: BMRA) last week.

Take a look at my notes below:

Source: Profit.ly

There are three main times to focus on the market right now.

Those who trade part time, pick one or two of these time frames and make sure to show up this week.

The volatility is at an all-time high!

Trade Opportunities This Week:

Sykes, Jack Kellogg, Mari at dinner with others surrounded by dinner table and food
© Millionaire Media, LLC

You might have noticed, the market is closed today in observance of MLK day.

And Donald Trump is set to swear in as the new POTUS.

Trump’s candidacy and election in 2024 led to significant momentum in the market.

  • Trump Media & Technology Group Corp. (NASDAQ: DJT) was volatile throughout the year (it spiked 360%* in 2024).
  • Tesla Inc. (NASDAQ: TSLA) spiked to new 52-week highs and then all-time highs after Trump was elected.
  • The market shot to new all-time highs after the election as well.

This coming week, after Trump is officially sworn in and starts directing the executive branch, we’ll likely see A LOT of the same volatility.

Here’s how I plan to play this inauguration momentum in the market 📈

My students and I are watching obvious stocks with connections to Trump …

We’re also looking for new spikers that announce news to try and capitalize off of this unique presidency.

For example … On October 31, 2024, DatChat Inc. (NASDAQ: DATS) announced “Trump Trivia”, an AI podcast for political trivia.

Keep your eyes peeled for unique trading catalysts this week!

The Best Times To Trade Right Now

I’ve noticed three major time frames that seem to show us the strongest stock spikes …

  • Right after the market opens for premarket.
  • Around the market open for regular hours.
  • And right after the market opens for after hours.

Take a look at the examples below from last week. Every candle represents one trading minute:

SGBX chart intraday, 1-minute candles Source: StocksToTrade
BKYI chart intraday, 1-minute candles Source: StocksToTrade
NUKK chart multi-day, 1-minute candles Source: StocksToTrade

Don’t exhaust yourself this week … 

Trading is a balance between playing the best opportunities and staying out of bad positions.

It’s also a balance between pushing it hard and protecting your health and sanity.

Strike the correct balance this week and only show up for the hottest time frames!

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”