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Trading Lessons

3 Lessons Every Trader Needs To Focus On In This Sizzling Market 🔥

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Written by Timothy Sykes
Updated 12/13/2023 5 min read

Yesterday the overall market was soaring higher and there were plenty of opportunities for traders to take advantage of!

And nothing makes me happier than seeing my students take advantage of those opportunities!

In the ever-changing market, preparation is key…

And with the Federal Reserve holding interest rates with potential cuts on the horizon in 2024, you must understand how this market works.  

Today, I’ll walk you through my latest trade, sharing insight on how you can spot some of the top opportunities in the current market.

Let’s begin!

Lesson 1: Spotting Patterns – Like a Stock Detective 🕵️‍♂️

Being good at trading is like being a detective, always looking for clues.

One of the biggest clues any trader can look for is by spotting any big percent gainer with volume.

Once you spot a big percent gainer it doesn’t mean you just go ahead and buy it…

It requires additional work and investigating as to what pattern fits best.

You can’t just hop onto your computer minutes before the market opens and expect magic.

It’s about analyzing the market and understanding the right patterns to help set yourself up for success.

If you want to become my next millionaire student, you’re going to need to follow specific steps…

Trade small, actively listen to my lessons, continue to grow, and make sure you have the right tools available.

The market is always changing, and so are the patterns we see.

Some of the patterns I like to look for are…

  • First Green Day
  • Supernova
  • One-day spikers
  • Multiday Runners

Here are a few YouTube videos to give you a better understanding.

Trading isn’t one-size-fits-all, and in 2023, we’ve seen stocks rise and fall in a day or run for weeks.

But it all comes down to spotting those big percent gainers and knowing what to look for next! 

Lesson 2: How To Profit From Your Trade đź’°

Every trader dreams of making a profit in every trade, but let’s be real – 100% success doesn’t happen.

Even Wall Street traders don’t see those kinds of returns.

My strategy boasts a 76% win rate, but that’s not the whole story.  Becoming a millionaire trader is also about discipline and understanding how these stocks work.

Know when to cut losses, protect gains, and find the best setups.

Let me give you an example with one of my latest trades on MicroAlgo Inc. (NASDAQ: MLGO)

Yesterday, I spotted MLGO squeezing higher, check it out…

Source: StocksToTrade

In the world of penny stocks, what goes up must come down.

When I see a big percent gainer, I look for it to find support after its recent spike.

I’m not trying to predict if it’ll run for days or weeks – I’m focused on the price action right in front of me.

Now, I want you to check out the chart below where I drew those white lines…

Source: StocksToTrade

That’s the support and resistance I was talking about and I use that to help me gauge where I could potentially buy or sell.

Around the $1.90 mark, MLGO found support and bounced off of it multiple times…

Source: StocksToTrade

More Breaking News

That’s when I decided to dip-buy, adding to my position a few times, and with an average entry of $1.935, I sold at $2.00 for a $650 gain.  (Risked $19,350).  

Lesson 3: Practice Makes Perfect – Like Training for a Game 🏀

Ever heard “Practice makes perfect”?  It’s true!

The more you study and practice trading, the more comfortable you become.

Proficiency involves trial and error, and there’s nothing wrong with starting small!

All of my millionaire students did, and even I continue to trade with a small account!

It took years of practice for me and my students to feel comfortable with our decisions.

And that’s why I offer FREE trading classes –   to help traders like you understand how this market works.

If real money makes you nervous, try a paper trading account.  It’s like training wheels for the stock market!

So if you’re ready to take your trading game to the next level and learn how to…

  • Spot the best setups
  • Understanding the latest market trends
  • Taking advantage of top plays

Make sure you’re studying and preparing the right way!

Click here to see how this FREE daily webinar is helping so many traders prepare for 2024! 

I’ll see you in chat.

-Tim

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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”