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Million Dollar Trading Profit Stock Market Pattern [8 CHARTS]

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Written by Timothy Sykes
Updated 1/25/2023 4 min read
Million Dollar Trading Profit Stock Market Pattern [8 CHARTS] Thumbnail

UPDATE: Watch this live trade to see this exact pattern in action 2+ years after this blog post was written…read this blog post to see several trades on this EXACT pattern 3 years after this blog post was written…now 5+ years after this blog post was written, BPSR is the latest blatant penny stock pump that dropped 30% today, look at this intraday chart, it’s the SAME, I feel like I’m taking crazy pills!

bpsr day 1 copy

At least one of my students gets it, but I want more:

In the stock market, trading challenge students have learned there are very few things that are very predictable.

Hot stocks, sectors, indicators, traders, tools and patterns–they’re always changing.

So it’s pretty amazing to have found one of the most, if not THE most, predictable thing all the stock market. One that has made me nearly $3 million and now subscribers of my 4 newsletters over $4 million dollars in the past few years and something that somehow doesn’t change over the years.

People call me crazy, cocky, dangerous, a salesman, a promoter, blah blah blah, but they fail to learn from my experience which no one can deny I am more than willing to share openly and for a small price because I know its worth…but many are resistant and they spread lies (the stock will dump whether or not I alert or if I or you find shares to short (thanks to these great penny stock brokers for having some amazing borrows lately!) and for some I just can’t win them over no matter how well I do trading (up 56% this year, or $250,000+ in trading profits, see all my trades, I ain’t just a salesman, I practice what I preach), how much I promote my 4 newsletters and my instructional DVD packages and stuff like this:

TIMalerts Reviews

PennyStocking Part Deux Reviews

PennyStocking Silver Reviews

…not to mention when we post gains of $70,000+ in one day, that more people don’t wise up to how penny stock pumps drop.

Forget about “knowing” how they can drop 30-50% in one day…especially when the stock runs up 100%, 200%, sometimes even 300% before that drop occurs, I’m talking about actually anticipating and trading at the key inflection point, on Horiyoshi Worldwide Inc. (HHWW) it was $2.70 (I was short at $2.71) and I also NAILED the 40%+ intraday collapse in Gryphon Resources, Inc. (GRYO), look at some blatant pump drops and see if you can better understand the pattern off which I’ve made millions and now teach others:

(yes, there’s even more money to be made on the long side as these guys learned with $400,000+ in profits…as long as you know how the game works and that the music will all stop eventually)

horiyoshi

nxthtank

nene

mncs

cliffs

clrhcollapse

SPNG

emgepump

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Timothy Sykes

Tim Sykes is a penny stock trader and teacher who became a self-made millionaire by the age of 22 by trading $12,415 of bar mitzvah money. After becoming disenchanted with the hedge fund world, he established the Tim Sykes Trading Challenge to teach aspiring traders how to follow his trading strategies. He’s been featured in a variety of media outlets including CNN, Larry King, Steve Harvey, Forbes, Men’s Journal, and more. He’s also an active philanthropist and environmental activist, a co-founder of Karmagawa, and has donated millions of dollars to charity. Read More

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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”