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Trading Lessons

Stock Market History Lessons

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Written by Timothy Sykes
Reviewed by Jack Kellogg Fact-checked by Ellis Hobbs
Updated 1/14/2025 5 min read

A lot of people who first hear about me and my trading … They don’t know that I’ve been at this for over two decades.

I traded during the dot com boom back in 2000!

Take a look at my profit chart below:

Source: Profit.ly

They also don’t know …

I use the same patterns to profit over-and-over again.

The same trade patterns for over 20 years.

These patterns repeat because people behave predictably when they’re stressed. Like when they have shares of a stock that’s spiking +100%* intraday.

I taught all of my millionaire students how to follow these patterns. And I can teach you too.

I’m sure that you have a lot of questions … Make sure to watch my newest podcast appearance for Lead-Lag Publishing.

Michael asked a lot of the same questions that I get from my newest students.

Watch our whole interview below:

I made sure to jot down the biggest lessons from my talk with Michael …

Lesson 1: How I Trade Right Now

I trade with a small account.

My position sizes are usually a few thousand dollars. There’s an example below:

Source: Profit.ly

For a lot of my students, that sounds like a lot of money.

But in my interview with Michael, I mentioned a conference that I went to with hedge fund managers who scoffed at my trade positions.

Wall Street has portfolios worth billions of dollars. To them, I’m a small fish. A minnow.

But I don’t want to trade like Wall Street …

Most people who start trading will start with a small account. That makes it difficult to use Wall Street’s strategy to make money.

Those guys trade expensive stocks that only move a couple of percentage points every day …

Instead, my students and I stick to low-priced stocks that can spike +100% intraday.

Interested in my exact process??

This is everything you need to know!

Lesson 2: It’s The Same Stock Movements

© Millionaire Media, LLC

The hottest stock sectors change from month-to-month and year-to-year.

But the framework and the momentum are the same …

For example, when I first started trading during the dot com boom, my strategy was to buy companies that added ‘.com’ to their names.

All these years later, when AI burst on the scene, I was trading stocks that added ‘.io’ to their names.

History rhymes in the market.

The more time that you spend watching the hottest stocks, the quicker you’ll notice these trends.

When it comes to actually trading these runners, I follow the 7-Step Framework.

Stocks can follow this framework because, once again, people are predictable during times of high stress.

More Breaking News

I’m essentially trading human psychology as it’s mapped on a stock chart.

Lesson 3: This 2025 Market

© Millionaire Media, LLC

I’m waiting for a crash …

But I’ve waited for a crash for at least a year now 😆

The momentum in the market is crazy! Ever since the AI boom started in early 2023, the S&P 500 ETF Trust (NYSE: SPY) gained 20% two years in a row …

Take a look at the chart below, every candle represents one trading day:

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

And all the while, we saw massive runners in our low priced niche.

For example, Between November and December 2024, Quantum Computing Inc. (NASDAQ: QUBT) spiked from less than $2 per share to over $20.

A total move of 1,800%*!

And on Monday of this week, January 13, Phio Pharmaceuticals Corp. (NASDAQ: PHIO) spiked 470%*.

I could go on and on about the biggest spikes in the market right now.

Put the pedal to the metal while we’ve got huge runners like this. Because the market will cool off eventually …

Start following the biggest stock spikes NOW: Join my trading live stream.

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”