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Penny Stocks-Timothy Sykes Millionaire Challenge

Failed Trades? Here’s Why You’re Losing

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Written by Timothy Sykes
Updated 2/10/2022 6 min read

Before I get into it, I have something to tell you…

You’re not alone.

The fact is, 90% of traders lose.

But you know what?

I’m not part of that group — and neither are my top students.

And even in this difficult market, I’ve been able to squeeze out more than $35K in trading profits in the first six weeks of the year.

Tim Sykes YTD profit $35,741

Of course, this market isn’t as saucy as it was last year…

But that doesn’t mean there aren’t any opportunities.

Don’t believe me?

Take a look at these recent runners.

Nitches Inc. (OTCPK: NICH)

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This stock ran from 10 cents to 75 cents in two and a half weeks. That’s a 650% gain!

NICH 3-month chart: 1-day candles (Source: StocksToTrade)
NICH 3-month chart: 1-day candles (Source: StocksToTrade)

Kaival Brands Innovations Group Inc. (NASDAQ: KAVL)

Here’s a runner from 75 cents that peaked at $2.25 in a week — a 200% spike!

KAVL 3-month chart, 1-day candles (Source: StocksToTrade)

More Breaking News

Bell Buckle Holdings Inc (OTCPK: BLLB)

Then there’s this three-week grinder. It’s up 200% so far and testing highs.

BLLB 3-month chart: 1-day candles (Source: StocksToTrade)
BLLB 3-month chart: 1-day candles (Source: StocksToTrade)

If you’re losing right now, want to know the #1 reason why? Listen up…

You’re not following the rules.

You probably treat trading like gambling. Like it’s a fun game you do to make some extra cash.

You’re wrong.

It’s life or death out here. The only reason why my millionaire students and I continue to profit is because we follow the rules.

Lucky for you, the rules aren’t hard to learn. I can even teach them to you right now…

Rule #1: Cut Losses Quickly

I’ve been in this industry for over 20 years. In that time, I’ve seen millionaires come and go.

Traders think they’ve figured it out. Then they lose it all when the market slows down and their patterns stop working.

Don’t be like those losers! Don’t ever get cocky. The market does what it wants and you can lose on any trade.

The key is controlling those losses to protect your profits.

You don’t know how many times I’ve heard traders talk about a big loss. They all say the same thing: “It’s gotta bounce, it’s gotta bounce.”

Take a look at this chart of MedMen Enterprises Inc (OTCQX: MMNFF)

A falling stock doesn’t have to bounce.

Protect your account and live to trade another day.

If you’re not convinced yet, take a look at this video I made about it…

Rule #2: Take Singles

Wall Street laughs at tiny profits. But not me. Quick singles are the bedrock of my trading strategy.

I can’t take more than the market gives me. So I get out before the price switches direction.

Things can move really fast in the day trading world. So learn to take profits without getting greedy.

Look at this trade I made recently. It was a panic dip buy on 88 Energy Limited (OTCQB: EEENF).

Tim Sykes Feb. 10 EEENF Trade

Profiting 3% is a small gain for me. But I’m perfectly happy with it. Remember that 90% of traders lose … this trade puts me in the top 10%.

Another thing to remember is, we’re in a choppy market right now. This time last year the market was hotter and I made more money. Check out my Profit.ly screenshot below of my profits from this time last year…

Tim Sykes Profits January 2021

I’ve adjusted my expectations this year because there’s less opportunity.

Rule #3: Find the Best Plays

If you watch the wrong stocks, you’ll lose. End of story.

Don’t waste time with useless crappers. Find stocks that have… 

  • High volume. High volume means the stock’s popular. That increases demand AND liquidity. Demand pushes the price up and liquidity ensures my trades get filled.
  • Percent gain. Stocks that spike can continue to spike. Instead of trying to find the next spiker, try and latch onto a spiker that’s about to go higher.
  • Clean chart. Traders rely on chart patterns. If I can’t see a pattern, there’s no way for me to trade it.
  • Hot catalyst. This is a spiker’s bread and butter. There needs to be a reason for the move. Don’t watch a stock unless it has a good reason to run.

The key is figuring out which catalysts will spike stocks and which won’t.

Over the years I’ve managed to figure out which news will lead to a probable spike. And often, I get there before the initial move.

If you’re serious about stock trading …

Learn how I use breaking news analysis to profit off penny stock volatility.

This isn’t a game to me. It’s my life. And it could be yours…

Have you figured out why you’re losing? What rule do you need to work on the most? Leave a comment, I want to see that you’re studying!


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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”