Patterns To Watch

The Next Supernova Stock

Written by Timothy Sykes Reviewed by Jack Kellogg Fact-checked by Ellis Hobbs

Updated 4/25/2025 3 min read

The Next Supernova Stock Thumbnail

In this article

CEP-6.70%
CEP - NYSECantor Equity Partners Inc.
$29.39-2.11 (-6.70%)
Volume: 53069
Float: 28.74M
$28.55Day Low/High$31.79

The most profitable trades in the market come from supernova stocks.

For example, last week, Cantor Equity Partners Inc. (NASDAQ: CEP) spiked 260%* after announcing a business merger with a Bitcoin company.

The price ran from $10 per share to over $30 per share!

And there were opportunities for gains all along the way.

Look at the CEP chart below, every candle represents one trading minute:

CEP chart multi-day, 1-minute candles Source: StocksToTrade

If you don’t see the profit setups on the chart above, don’t worry!

I can show you.

How To Trade These Setups

Before we discuss the patterns that my millionaire students and I use from these spikes … You have to accept this truth about the market:

Successful trading is about patience.

A lot of my newest students lose money in the market because they get too excited about the opportunity to make money. As a result, they overtrade. They see trade patterns where there aren’t any.

We only see a few supernovas every month. But you’ll know it when you see it.

Look at my post below from CEP’s spike last week:

Thank you to all the over-aggressive short sellers for $CEP this is EXACTLY why I made this new Supernova guide https://t.co/iQeYzY4GEe whewwwww, congrats to all longs, what a ride! Retweet this if you love it too! pic.twitter.com/HLlC89RHL5

— Timothy Sykes (@timothysykes) April 24, 2025

Stay patient until you see the next supernova price action.

Don’t waste capital on worthless trades. You’ll just eat into your profits.

The Breakout Pattern

At its simplest, supernova spikes are moves that blow past resistance from earlier in the day or within the last 24 hours.

The move is extremely explosive, and the volatility can often cause the stock to halt.

I drew the breakout line on the CEP supernova chart below. Every candle represents one trading minute:

CEP chart multi-day, 1-minute candles Source: StocksToTrade

Within this eruption, there are a few areas where we can trade and build positions.

I’m not the only trader who saw this setup. Look at the comment on my post below.

I had to redact the entry because X doesn’t verify trades:

Source

Learn how to …

Spot the next supernova before it turns vertical.
Calmly trade this price action while everyone else panics.
Sell shares to maximize gains and minimize potential losses.

Watch my supernova tutorial below:

And remember, be patient!

There’s another supernova right around the corner. Don’t waste your capital before we get there.

Cheers.

*Past performance does not indicate future results

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Author card Timothy Sykes picture

Timothy Sykes

Tim Sykes is a penny stock trader and teacher who became a self-made millionaire by the age of 22 by trading $12,415 of bar mitzvah money. After becoming disenchanted with the hedge fund world, he established the Tim Sykes Trading Challenge to teach aspiring traders how to follow his trading strategies. He’s been featured in a variety of media outlets including CNN, Larry King, Steve Harvey, Forbes, Men’s Journal, and more. He’s also an active philanthropist and environmental activist, a co-founder of Karmagawa, and has donated millions of dollars to charity.

* 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”

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