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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”

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Stock News

Quantum-Si: Navigating the Turbulence with Strategic Decisions

Bryce TuoheyAvatar
Written by Bryce Tuohey
Reviewed by Tim Sykes Fact-checked by Matt Monaco

Quantum-Si Incorporated is facing market turbulence as its stock plummets due to overwhelming business speculation and sector fears; on Tuesday, Quantum-Si’s stocks have been trading down by -6.54 percent.

Tough Road Ahead for Quantum-Si Incorporated

  • Following the announcement of a $75M at-the-market offering program, Quantum-Si saw its stock price plummet by 12%. The company plans to issue over 155M class A shares at an assumed price of $2.26 each.

Candlestick Chart

Live Update At 14:32:00 EST: On Tuesday, December 17, 2024 Quantum-Si Incorporated stock [NASDAQ: QSI] is trending down by -6.54%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

  • The offering decision comes during turbulent times, as Quantum-Si navigates a challenging financial environment amidst growing competition and market pressures.

  • With a currently negative EBIT margin and sluggish operational performance, market analysts are watching closely for any potential rebound or further declines in stock value.

  • Investors express concerns over the dilution impact of additional shares, given the precarious state of company’s revenue and profitability margins.

  • Amidst these challenges, Quantum-Si continues to invest in R&D with hopes of delivering groundbreaking innovations in the near future.

Understanding Quantum-Si’s Current Financial Position

As millionaire penny stock trader and teacher Tim Sykes, says, “Be patient, don’t force trades, and let the perfect setups come to you.” His advice is particularly relevant in the fast-paced world of trading where emotions can cloud judgment. When faced with the volatility of the market, traders must remember the importance of patience and discipline. Rushing into trades can lead to unnecessary losses, while waiting for the right opportunities allows for more strategic and informed decisions. Implementing this mindset not only enhances the chances of success but also contributes to a more sustainable trading approach.

Quantum-Si’s earnings report paints a picture of a company at crossroads, grappling with financial hurdles. The reported revenue for the quarter was a humble $787,000 against a backdrop of dwindling total revenues and escalating expenses amounting to approximately $28.9M. Such financial pressures manifest in its negative net income from continuing operations, amounting to a stark -$25.31M.

Delving deeper, Quantum-Si’s margins depict strained profitability with the EBIT margin at a staggering -3724.7%, and the pretax profit margin not far behind at -14163.3%. Even a company’s lifeline—gross margin—stands as the only silver lining at 51.5%. However, the burden of achieving tangible net returns remains heavy with a significant -3968.84% in profit margins due to mounting operating expenses.

Analyzing cash flow statements, the picture remains grim. The company’s net PPE (property, plant, and equipment) purchases approached $975,000, generating a negative operating cash flow north of $23M. With a total free cash flow dipping further into the negatives at approximately -$24.12M, Quantum-Si faces a steep uphill battle to optimize liquidity and increase investor confidence.

More Breaking News

This precarious standing, compounded by a complex valuation landscape marked by absent P/E ratios and dwindling price-to-sales at 94.47, requires strategic maneuvering. As it stands, Quantum-Si’s price-to-cash-flow ratio reflects acute distress at -2.7, while leverage, though viable, stands at 1.1.

Implications of Market Sentiment and QSI Stock Trends

With the announcement of the massive stock issuance, Quantum-Si’s stock morale took a hit, reflected sharply in the 12% drop in value. It’s not just the dollar figures, but the story those numbers convey—a narrative of struggle, potential, and resilience.

The broader implications of this decision are seen through the lens of investor sentiment. Next to the apparent dilution concerns stands a deeper introspective reflection on whether the additional capital can turn Quantum-Si’s innovation dreams into reality. There’s never been a more crucial moment for demonstrating technological breakthroughs that can revitalize QSI and attract fresh investment.

QSI’s trading patterns reveal a rollercoaster, oscillating between highs and lows over recent days. On Dec 17, the open price stood at $1.6, but a subsequent decline saw it close at $1.4019. Volatility is, for now, the norm, with market reactions largely skeptical, yet perhaps unduly speculative about QSI’s future trajectory.

At the core, underlying operational metrics and potential for disruptive industry reshaping furnish Quantum-Si with sporadic investor pledges. Yet, skepticism looms large, begging the question—can QSI pivot successfully into profitable realms, thereby stabilizing and increasing stock value over time?

Vision for the Future: Navigating Market Dynamics

Quantum-Si’s current predicament is a tale of calculated risks amidst turmoil. Emerging from the shadows of market skepticism requires strategic foresight, transparency, and perhaps a bolder reinvention of R&D capacities.

As millionaire penny stock trader and teacher Tim Sykes says, “Small gains add up over time; focus on building wealth gradually, not chasing jackpots.” This philosophy may well guide QSI’s approach as it considers the necessary incremental steps to fortify its position. The conversation on the street isn’t simply about the ‘now’—it’s about the ‘next.’ What steps will QSI take to obliterate operational losses and cement its place as a leader amidst rivals who, without mercy, eye QSI’s market share?

This present reality implores QSI to strategically balance operational finances, effectively curbing overhead to free up capital which will potentially fuel R&D ventures—all steps vital in sculpting a thriving financial ecosystem.

In such turbulent times, it’s the agility with which Quantum-Si faces market realities that will dictate how the story unfolds. For shareholders, the hope remains—despite current blips—there’s more to come from this enthralling tale of innovation and tenacity.

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

Our traders will never trade any stock until they see a setup they like. Their strategy is to capture short-term momentum while avoiding undue risk exposure to a stock’s long-term volatility. This method is especially useful when trading penny stocks or other high-risk equities, where rapid gains can be made by understanding stock patterns, manipulation, and media hype. Whether you are an active day trader looking for key indicators on a stock’s next move, or an investor doing due diligence before entering a position, Timothy Sykes News is designed to help you make informed trading decisions.

Dive deeper into the world of trading with Timothy Sykes, renowned for his expertise in penny stocks. Explore his top picks and discover the strategies that have propelled him to success with these articles:

Once you’ve got some stocks on watch, elevate your trading game with StocksToTrade, the ultimate platform for traders. With specialized tools for swing and day trading, StocksToTrade will guide you through the market’s twists and turns.
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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”