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The #1 Trade To Make Today: 10/11

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Written by Timothy Sykes Reviewed by Jack Kellogg Fact-checked by Ellis Hobbs
Updated 10/10/2024 4 min read
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Welcome traders,

Happy Friday!

At the end of every week (TODAY), the incoming weekend inspires a very specific kind of price action in the market.

Every single Friday I look for the same pattern.

And for the last five Fridays, I’ve pulled a profit every time!

Here’s last weekend’s trade, as an example:

Source: Profit.ly

You’d think that most people would have caught on by now, since the pattern keeps repeating. Here’s why they haven’t:

  • Nobody else watches these small-cap spikers with any degree of analytical thinking. Wall Street is preoccupied with big stocks like NVIDIA Corporation (NASDAQ: NVDA).

Plus:

  • For most small-account traders, their emotions prevent them from recognizing this textbook pattern.

My students and I know how to take a step back from the emotions caused by fear and greed in the market.

That’s how we recognize the patterns caused by these emotions.

And over the last five weekends, I pulled a profit from each of the stocks below:

Today, Friday, October 11, I’m looking for the exact same price action …

The Friday Pattern

© Millionaire Media, LLC

We target some of the most volatile stocks in the market because the volatility gives us larger opportunities to profit.

But it also means that the price moves quickly …

As a result, we have to wait until the afternoon to find this pattern.

A lot of new traders might try to build positions in the morning. They get excited when the market opens and stocks start to fly.

Exercise patience!

More Breaking News

I don’t build a weekend position until after 2:59 P.M. Eastern on Fridays, sometimes even later. See my pattern tutorial below:

This next part is very important …

If you don’t see our pattern, don’t make a trade!

There’s no such thing as a 100% guarantee in the stock market. Sometimes I don’t find a weekend trade. And that’s OK.

Above all things, traders have to keep their accounts safe. We have to make good trading decisions. And sometimes that means we don’t trade at all.

Make sure you’re in the right mindset:

This is a marathon. Not a sprint.

Think about it like this …

There are 52 weeks in a year. That means, you only have to show up for 52 weekend trades.

Even then, It’s unlikely that there will be a trade to make every weekend, because we don’t see this pattern every Friday …

  • Show up.
  • Make a good trade (even if it’s no trade).
  • And check that week off of your calendar.

This Friday, October 11, we’re on week 41.

Now you’re in the right mindset.

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”