A lot has changed over the 25+ years I’ve been trading.
But there’s one thing that has ALWAYS stayed the same…
Most traders treat Friday afternoon like a school teacher trying to escape without being seen.
It’s one thing I think will NEVER change.
The longer you trade, the more you’ll see it.
Especially if you take it seriously and focus on the process.
Because no matter how many hours of trading there are…
…and no matter how many rules or restrictions get added (or lifted)…
… and no matter what new technology comes along…
There’s only one thing that drives price action.
And it’s the same reason why my weekend trade strategy still works decades later.
Table of Contents
The One Thing That NEVER Changes in Trading
This is counterintuitive…
Because even though technology has made old-school trading pits unnecessary, they’re a perfect example of why patterns repeat again and again.
And it’s even more evident with my weekend trade strategy…
Tickers and Technology Change, But Human Nature Stays the Same
Yes, patterns get hot for a while and then fade, but I haven’t found one that completely stopped.
Even though I sometimes wonder if one of my patterns is dead, I’m always pleasantly surprised.
But when you think about it, it’s all human nature.
That’s because the market is just buyers and sellers. Patterns become self-fulfilling prophecies.
And thanks to human nature, they play out again and again.
The weird thing about my weekend trade strategy is that the reason it keeps working is the opposite of most patterns.
With most patterns, everyone is watching and trading whatever is hot.
So, when a stock hits a key level at a certain time of day… BOOM.
With the weekend strategy, it’s just the opposite.
It works because people treat the market like that school teacher on a Friday afternoon.
Let’s take my latest weekend trade as an example…
PDS Biotech (NASDAQ: PDSB) had a multi-day, multi-week breakout a week ago (Oct. 5) after announcing it “will host a virtual key opinion leader event” on Thursday (Oct. 15).
Notice the two key levels on the chart above.
$1.05 was the multiweek breakout level last Monday, and $1.35 was Friday’s breakout over the Oct. 5 high
Now check out how former resistance ($1.05) became support:
See how PDSB consolidated for two straight days at the new support level?
On Friday afternoon, PDSB broke out over Monday’s high going into the close.
Here’s my trade:
My thesis for this weekend trade:
- PDSB was breaking out of its recent range in anticipation of this week’s virtual event.
- In September it proved that it can run for multiple days (see the 3-month chart above).
- It was a solid first green day.
- It closed near its highs.
My goal was to make 10%–20% and cut losses if it couldn’t hold the breakout.
Turns out it was a nice and easy single over the weekend.
This setup keeps working because, frankly, people disengage on Friday afternoons.
Discover How to Trade the Weekend Strategy
If you’d like an over-the-shoulder look at how I make these trades, I’ve put together a video training.
Check it out here…
Make this trade on Friday afternoon (and thank me on Monday)
Of course, I can’t promise that you’ll see the same results.
Even a strategy as simple as my weekend setup requires study and practice.
But it’s not rocket science (and most traders are just too lazy to capitalize on this ongoing opportunity).
Key Takeaway
PDSB had all the elements: a first green day, a catalyst, and a technical breakout.
But the underlying reason why this pattern keeps working is that most traders get lazy on Friday afternoon.
You can choose to check out early on a Friday.
And I know a lot of very successful traders who do.
But I love how straightforward this setup is simply because of human nature.
Cheers,
Tim Sykes
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