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The #1 Strategy In A Market Selloff:

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Written by Timothy Sykes
Updated 8/2/2024 4 min read
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The market is scary right now … If you’re an investor.

But traders like me and my millionaire students are sitting pretty.

Yes, the market took a major hit last week. On the S&P 500 ETF Trust (NYSE: SPY) chart below you can see the dip. Every candle represents one trading day:

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

But this intense volatility (no matter the direction) can create huge trade opportunities for us.

For example, during last week’s market carnage, my students were still able to find decent trade setups.

See the post on X below:

Source

Actually … During a bear market. Trading might be one of the best ways to find profits.

  • There’s no long-term exposure.
  • We only focus on the best plays.
  • If there aren’t any setups we can close the laptop.

The setups might not be as big as they are during a bull market. But at least we get to sit in cash and save ourselves from constant market exposure.

How To Trade Right Now

© Millionaire Media, LLC

This is the most important part of a traders strategy right now:

Don’t make stupid mistakes!

There are a lot of dos and don’ts in the stock market. Especially in our small-account niche.

It’s especially dangerous for new traders because this information isn’t always intuitive.

Take 20 minutes right now to learn the 20 biggest lessons that a new trader needs to know.

That’s 1 lesson every minute. Talk about a high value proposition.

These trading tips could help save your account in August!

Watch my video below:

More Breaking News

  • The best setups in the market …
  • Stocks that spike +100%* intraday …
  • Cheap stocks that we can load up on shares of …

They like to follow a specific framework.

During up markets and down markets alike! This framework exists because people are predictable during times of high stress.

And all of my millionaire students use this exact framework to trade.

The patterns don’t change because people have always behaved similarly when they’re stressed … And they likely always will.

Once my students learn the process, they can apply it to the next hottest stock. Over and over again, day after day, year after year!

And in 2024, I taught this specific framework to an AI bot …

It started as an experiment. To see if it was even possible. Is AI capable of tracking these predictable patterns in the market?

The answer: Yes!

Right now my students are using a sophisticated AI to find and follow the hottest trade setups in the market.

And so can you …

Enter your favorite ticker into our AI trading bot and it will spit out a trade plan as if you asked me directly!

This is how we’re trading in a scary market.

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”