timothy sykes logo

Penny Stocks News

Why Trading Every Day Can Be Crippling To Your Account

Timothy SykesAvatar
Written by Timothy Sykes
Updated 2/15/2023 6 min read

Do you trade for thrills or do you trade to make money?

Because if you trade to make money…then you’re doing yourself a major disservice by trading all day.

In fact, 90% of traders who fail are those who trade impulsively every day, rather than waiting for the best opportunities to arise.

Over the years, I’ve learned the importance of sitting on the sideline when the market doesn’t present itself with the best opportunities…

And I only spring back into action when exceptional opportunities come around.

I didn’t make over 7.4 million in profits by sitting behind a computer screen all day…

So if you want to know want to enjoy more of your free time…

And know how to spot perfect trading opportunities like I did yesterday within a matter of minutes after the open…

You’ll want to see what I have to share with you today!

Taking A Time Out 

There is a time when every trader needs to take time off from trading…

Whether it’s for a vacation, or just to clear your thoughts…

It’s the best thing you can possibly do, trust me.

Don’t let FOMO become your worst enemy, there have been plenty of times when I’ve taken a break from the market, especially when things haven’t worked out as planned.

I like to refer to this as “trading retirement”, I will only come out when some of the best plays are available.

Many newbie traders think they need to be glued in front of a computer screen all day every day to get the best plays…

But in reality, that is the worst thing for any trader to do.

You start to develop an unhealthy relationship with the market, which ultimately can cause you to overtrade…

And will lead to unnecessary losses.

There isn’t going to be a great setup for you to trade every day, and recently I have taken a step back from the market with these subpar setups.

I am not going to start risking my hard-earned money in hopes to make a few bucks when the risk is way too high.

Every day I tell my students to focus on the best potential setups and not to force any type of trade…

And yesterday, I decided to come out of retirement thanks to this…

When To Come Out Of Retirement

Earlier I mentioned it’s perfectly ok to stay in retirement until something so perfect comes your way…

And yesterday, it happened.

You see, recently we have seen a lot of one-day spikers, which are just simply failing after their initial run-up.

For example, we have:

  • Imperial Petroleum Inc. (NASDAQ: IMPP)
  • ContextLogic Inc. (NASDAQ: WISH)
  • China Jo-Jo Drugstores, Inc. (NASDAQ: CJJD)

As those plays can be difficult to capitalize on, there is a way you shift the odds in your favor.

Yesterday morning I was alerted about Epazz, Inc. (OTC: EPAZ) thanks to StocksToTrade Breaking News.

Here’s the alert…

And here’s the chart…

EPAZ chart 1-minute candles | *Risked $2,191.75 in capital to profit $598

These are the types of plays you want to come out of retirement for when you have a strong catalyst like this, and there is higher than average volume to help catapult it higher…

Remember, don’t stay too long in these positions as they can easily turn towards the end of the day or the next day.

StocksToTrade Breaking News plays aren’t the only reason why you should come out of retirement…

But when you have a solid pattern that has been fundamentally sound for the last several days, weeks, or even months…

You should be keeping a close eye on them.

GlycoMimetics, Inc. (NASDAQ: GLYC) has been on my radar for a while now, and this chart pattern has been so solid over the last several weeks…

With several solid break-outs, I was waiting to see if it would break through its multi-year high.

Here’s the chart…

GLYC chart 1-day candles Source: StocksToTrade

Since I was too busy trading EPAZ thanks to StocksToTrade Breaking News, I missed my opportunity and I didn’t want to chase it.

Instead, I am going to be focusing on a dip-buying opportunity for when that occurs…

So be sure you focus on this every morning and make sure you understand my 7-Step Penny Stocking Framework.

And yesterday, I alerted you about Global Developments, Inc. (OTC: GDVM)

Here it is in case you missed it…

GDVM chart 1-day candles Source: StocksToTrade

Both of these plays remind me a lot of Western Sierra Resource Corporation (OTC: WSRC)…

More Breaking News

So I want all of you to go back and look at the similarities between these stocks and study them so you are prepared for the next opportunity with GLYC!

Last Piece Of Advice

It’s important you aren’t waiting for me to alert you about a trade before you trade…

Because a minute or even a few seconds may be a little too late.

All of my students learned the necessary steps to be successful…

And they take that advice and learned how to find these setups on their own.

Make sure you have the right tools to help you catch some of the biggest plays like I did yesterday…

But also become a self-sufficient trader to can be better prepared to capitalize on some of the biggest gains…

Even when you are in trading retirement.

STUDY UP!

-Tim


How much has this post helped you?



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”