timothy sykes logo

Trading Lessons

Another Week Full Of Profit Opportunities

Timothy SykesAvatar
Written by Timothy Sykes
Updated 4/8/2024 4 min read
Another Week Full Of Profit Opportunities Thumbnail

It’s time to get excited.

We’ve got another week ahead of us and it’s full of profit opportunities. That’s the beauty of our niche: There are ALWAYS profit opportunities.

Compared to the larger market, where everyone’s worried about inflation and the FED’s next decision. They’re particularly worried right now because the market is showing signs of weakness.

On the S&P 500 ETF Trust (NYSE: SPY) chart below, we can see waning momentum during recent days. Every candle represents one trading day:

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

But no matter which way the market goes, there will still be profit opportunities in our small-account niche.

Because there are always crappy companies trying to inflate their share prices with fluffed up news.

And more recently, there’s an abundance of short sellers that continue to bet against these crappy stocks. It sounds like a good bet, but since there are too many short sellers, these crappy stocks can develop into HUGE short squeezes.

There’s so much opportunity right now for small-account traders who focus on long-biased positions. Take Friday’s spike on 22nd Century Group Inc. (NASDAQ: XXII) for example. The price launched 140% in one day.

Look at the chart below:

XXII chart intraday, 1-minute candles Source: StocksToTrade

There will be more trade setups in the week ahead!

Here’s How To Find Them

© Millionaire Media, LLC

We’re looking for stocks that spike WITH a catalyst. There needs to be a reason for the spike, otherwise we’re just buying random momentum.

XXII spiked after the company announced it had signed a big new customer that will increase certain production levels by 20%. You can see on the chart above when the news was announced on Thursday during after hours.

The price took a break during premarket hours on Friday and then spiked to new highs intraday.

We need to get eyes on this news as early as possible so that we have enough time to track the price action and plan a trade.

But you won’t find quick enough news on Yahoo Finance or The Wall Street Journal. We have to tap into the source to get this news ASAP. I use Breaking News, and I was alerted before the market opened for regular hours on Friday.

See the chart below:

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

Make sure you’re signed up for Breaking News this week.

I’m sure most of you work day jobs. I do too, my day job is teaching YOU how to trade. As a result, I don’t have time to watch my screen all day long.

I wait for a Breaking News alert and then I plan a potential trade.

Here’s where you’ll find the next alert.

There’s never been a better time to start trading with this process.

Upcoming Bull Run

sykes by bull
© Millionaire Media, LLC

Everyone’s worried about a market pullback. We saw the SPY price action earlier in this blog … Things are looking a little sketchy.

It’s possible the U.S. market dips in the short term.

But there’s a huge catalyst looming right now. When it hits the stock market, everything points to an all-out buying spree. Analysts estimate this catalyst at a value of $2 trillion!

The government could drop the news any day.

Here are the details behind the next bull run.

Prepare now so that you don’t have to play catchup.

Cheers.

How much has this post helped you?

(0 votes, average: 0 out of 5)
Leave a reply

* 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”