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Inauguration Week: Trading Volatility in Trump’s Second Term

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Written by Timothy Sykes Fact-checked by Ellis Hobbs
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The market is heating up as Donald Trump begins his second term as President of the United States. Volatility is dominating the market, with low-priced stocks spiking across the board. If you’ve been waiting for the right conditions to trade, this week’s market action offers plenty of opportunities—but only if you approach it with caution and discipline.

The other big news is that $15 million trader Jack Kellogg also held his first-ever pre-inauguration briefing. He’s already made $2.4 million in profits in the 10 weeks since Trump was elected…

He’s got some big ideas on how to make the most of the upcoming hot market…

Get Jack’s NO-COST inauguration idea here!

Penny Stock Volatility in a Hot Market

This week’s volatility extends far beyond Trump-related stocks and assets. Last week, we witnessed massive spikes in unrelated plays like Phio Pharmaceuticals Corp. (NASDAQ: PHIO). PHIO spiked 470%* in one day, from $1.69 to $9.79, fueled by positive clinical trial results. The takeaway? Traders should focus on bullish news catalysts and low-float stocks for potential opportunities, regardless of sector or political ties.

Here’s my trade on PHIO:

The last few sessions have been a perfect example of why I trade penny stocks. Where else can you see moves like this?

  • Safe & Green Holdings Corp. (NASDAQ: SGBX) spiked 250%* during premarket hours.
  • BIO-key International Inc. (NASDAQ: BKYI) jumped 140%* during regular trading hours.
  • Nukkleus Inc. (NASDAQ: NUKK) surged 50%* in after-hours trading.

These are the types of price swings I look for. They’re fast, they’re volatile, and they reward traders who stick to a well-defined plan. But don’t forget, this volatility works both ways—stocks can drop just as quickly as they rise. That’s why cutting losses quickly is non-negotiable.

Market Trends I’m Watching Under Trump

President Trump’s return to the White House has supercharged several sectors. Crypto tokens like the “Crypto Emperor Trump” ($TRUMP) memecoin surged over the weekend, as Bitcoin reached a new all-time high over $109,000!

Trump’s policies are already influencing the market, and traders are watching to see how key sectors respond. Here’s where I’m focusing my attention:

  • Financials: Big banks stand to benefit from deregulation and potential M&A activity. With CEOs at major institutions already expressing optimism, this is a sector worth keeping an eye on.
  • Technology: Trump’s push for AI and reduced regulatory oversight is driving momentum in tech stocks. Companies like Amazon and Apple are investing heavily, which could create trading opportunities in this space.
  • Industrials and Airlines: Smaller players in these sectors might see growth opportunities under Trump’s pro-business policies. But watch for potential challenges, like increased costs due to tariffs or policy shifts.

Not every sector will thrive. Automakers and construction companies could face headwinds from policy changes, so it’s crucial to remain selective about where you trade.

Key Time Frames for Trading Volatile Stocks

This week’s volatility is creating opportunities at all hours. Here’s how to think about timing your trades:

  • Premarket Hours: Some of the biggest moves, like SGBX’s 250%* spike, happen before the opening bell. This window is great for traders who can act fast on breaking news.
  • Regular Trading Hours: For most traders, this is the easiest time to trade. Stocks like BKYI showed huge spikes during the regular session.
  • After Hours: Don’t ignore the after-hours market. NUKK’s 50%* move proves there’s still plenty of action after the close.

If you’re a part-time trader, focus on one or two of these time frames and show up consistently. It’s not about trading every spike—it’s about being prepared when the right setup appears.

*Past performance does not indicate future results.

Adapting Your Strategy to Match the Opportunity

In markets like this, you have to stay flexible. Last week, I adjusted my trading schedule to target the most active time frames, and it worked out with a solid trade on Biomerica Inc. (NASDAQ: BMRA). The key wasn’t chasing the biggest spike—it was waiting for a setup I understood and sticking to my plan.

Here’s the trade I made on BMRA…

That’s what separates profitable traders from the 90% of traders who lose…

Anyone can get lucky on a random trade. A winning strategy is built through discipline, patience, and risk management—even when the markets are going completely nuts!

To capitalize on this week’s market volatility, keep these key strategies in mind:

1. Watch for News-Driven Spikes

PHIO’s spike last week is a perfect example of how positive news can propel a stock upward. Whether it’s clinical trial results, earnings surprises, or strategic partnerships, focus on stocks with fresh, impactful news.

2. Target Low-Float Stocks

Stocks with fewer than 10 million shares available for trading tend to spike higher when demand surges. For example, PHIO’s float was just 547,000 shares. This low supply amplified the price movement during its run.

More Breaking News

3. Apply The Patterns That Work For You

Dip-buying is one of the most reliable strategies for trading volatile stocks. In PHIO’s case, the breakout past $4 presented a textbook dip-buy opportunity. This pattern is Step #5 of my 7-Step Pennystocking Framework—I’ve been using this pattern for more than a decade!

Key Takeaways

  • Show up consistently during the trading time frames that fit your schedule.
  • Avoid chasing spikes—wait for the setups that you’re most comfortable trading.
  • Watch for good catalysts on stocks that can move, like low-float stocks and penny stocks.
  • Always trade with a plan!

This is a market tailor-made for traders who are prepared. Trump’s inauguration is creating fresh volatility, but it’s up to you to capitalize on it. Stick to your plan, manage your risk, and don’t let FOMO drive your decisions.

These opportunities are fast and unpredictable, but with the right strategy, you can make them work for you.

I recommend that you pay close attention to the first days of this possibly historic bull market.

If you want to know what I’m looking for—check out my free webinar here!

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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”