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Trading Lessons

Where I Find Trades Right Now!

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Written by Timothy Sykes
Updated 8/6/2024 4 min read
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Already, the market experienced a decent bounce from Monday’s initial panic.

See the S&P 500 ETF Trust (NYSE: SPY) chart below:

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

But the market is still on edge. You can cut the tension with a knife.

Take a look at the CNN fear and greed index below:

Where we go from here is anyone’s guess …

That’s why I feel so blessed to be a trader right now.

My trading account isn’t exposed to the market unless I make a trade that follows my framework.

  • I recognize key price action.
  • I get in.
  • I get out.

My account isn’t affected by larger market swings like the accounts of traditional investors.

And even during times of extreme fear, I’m still able to find profit opportunities.

For example, this week I traded Lumen Technologies Inc. (NYSE: LUMN) twice for profits. See my notes below:

Source: Profit.ly

Want to know how I find these trade opportunities??

Only The Best Setups

tim sykes in sedona arizona with laptop of stock chart
© Millionaire Media, LLC

When the market is sketchy like this, it’s really important that we focus on the best trade setups.

Three out of four stocks follow the market. Which means, if the market dives most of the stocks in our niche will trend downward.

As long-biased traders, that’s not a great sign …

But, it also means that when we do see a good setup, it’s OBVIOUS. Because it’s likely the only stock in the market even remotely following our framework.

On August 5, I watched one of these setups develop right before my eyes.

More Breaking News

StocksToTrade Breaking News alerted the news for LUMN during after hours …

The company announced $5 billion of new business driven by AI!

Take a look at the alert on the chart below, every candle represents one trading minute:

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

Catch the next Breaking News stock!

Traders had all afternoon and the next morning to prepare for an intraday spike on August 6.

And this stock was already on my watchlist because it’s on a multi-day run.

Take a look at the chart below where every candle represents one trading day:

LUMN chart multi-week, 1-day candles Source: StocksToTrade

This stock was following our framework and already spiked. That’s what I mean when I say that I look for obvious plays.

I’m not predicting which stock will run … I react to price action that already exists in the market.

Plus, you don’t have to be an expert to capitalize on these setups.

Follow my framework using our AI trading bot.

It’s the same pattern over and over again. Once you see it a few times, things will start to click.

Get ready for the next trade opportunity! Use Breaking News to catch the runner early and use AI to track the price action.

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”