timothy sykes logo

Trading Recap

Here’s How I Spotted and Traded $VERB

Timothy SykesAvatar
Written by Timothy Sykes
Updated 9/5/2023 5 min read

Nothing gets me more excited than seeing my students nail their trades after a long weekend!

You see, there are no guarantees when it comes to trading…

And none of them are waiting for me to tell them what to do.

Trading is all about being prepared and that’s what helped me and my students nail our recent trade on VERB.

So if you missed this trade, don’t worry!

I’m about to share with you how I spotted this opportunity, plus what my trading plan was from before the market opened!

Let’s get going!

Short Sellers Are At It Again

On Tuesday Verb Technology Company, Inc. (NASDAQ: VERB) announced it completed and launched a technology integration with TikTok.

The price of VERB soared from $0.71 to $1.80 in just two minutes!

That’s over a 150% move!

Not only did the price soar but so did the average trading volume.

Over the last 60 days, VERB was trading a little over 60,000 shares per day…

And at the time I’m writing this, it’s already traded over 55 Million shares!

In a market that is littered with short sellers, these are the opportunities you want to take advantage of…

Not only because of the news and higher volume, but because it’s also a low-float stock that’s heavily shorted.

That’s a recipe for a potential Supernova!

It’s important to remember that not everything is an exact science when it comes to trading, and all of my students know that…

So I don’t want you buying and holding thinking it has to go Supernova.

Let me show you what I mean.

How I traded VERB

Here’s the alert from StocksToTrade Breaking News…

Most newbies who see a breaking news alert like this tend to dive head-first into their trade without thinking about it.

As that may be their approach, that’s not mine…

There’s a process I like to follow after I spot a big percent gainer.

You see, I’m very meticulous with my trades and I’m fully analyzing everything I can before I dive into it…

And that’s exactly what I did with VERB.

The majority of my trades are panic dip buys…

So when I notice a big percent gainer, I’m simply looking to buy the dip.

Let’s take a look at the chart below…

Source: StocksToTrade

These are the types of moves that I’m looking for before I trade it.

I don’t want to trade flat-moving stocks or down-trending stocks…

I want stocks that are spiking higher with volume.

I don’t like to gamble my hard-earned money away, I wait for something that I feel comfortable with…

And if I don’t feel comfortable, I simply move on and look for another opportunity to take advantage of.

After VERB spiked in the morning, I looked back at multiple charts…

Daily, monthly, yearly charts…

I wanted to get as much information as possible about VERB before I felt comfortable with where I was going to buy it.

Looking at the chart below, you can see that the $1 mark acted as support for multiple months, until recently…

Source: StocksToTrade

After seeing it break back through, I kept a close eye on Level 2 to see when the stock could potentially start turning upwards.

A few minutes after dissecting all of the information I needed to digest, VERB started to hold above the $1 mark and started moving higher.

Here’s how I traded it.

Source: StocksToTrade

I entered my trade at $1.06 and in just a few minutes I sold it at $1.15 for an 8.49% profit!  (Risked $5,300).

VERB didn’t go full Supernova like I was hoping, and given the volatility of it during the premarket I didn’t want to risk it by holding onto it any longer, even though I thought it would probably continue moving higher…

Source: Profit.ly

And it did!

I was right with my prediction, but that’s the thing, most newbies tend to hold onto trades longer than they should…

And eventually, it will cost them.

On many of my trades, I leave a lot of money on the table by exiting my trade too early,  and I’m perfectly fine with that.

The name of the game is being able to lock in singles and cut your losses quickly…

Because over time, your small profits will add up if you do.

Every day I scan the market for some of the biggest percent gainers out there and use StocksToTrade Breaking News.

So before you make your next trade, be sure you’re looking for those big percent gainers every morning…

And have a game plan going into every trade!

I want all of you to be prepared before your next trade, so be sure you’re taking advantage of these FREE daily trading sessions! 

I’ll see you in chat

-Tim

How much has this post helped you?

(0 votes, average: 0 out of 5)
Leave a reply

* 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”