For Best Results, Respect the Rules

This should go without saying, but it has to be said…

This is one of the best markets for day traders I’ve seen in my 20 years of trading. Now, if you don’t respect the rules then it’s gonna be rough.

When Other Traders Log Out, Tim Sykes Is Just Getting Started

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The Big Picture

I repeat this pretty much every day right now, but it’s worth repeating again.

This is a trader-friendly market

Now, for some people that might be confusing. What does “trader friendly market” mean?

It means that over time…

Good Decision-Making Will Reward You

To start, we don’t fall for the hype. These are just trades.

Remember our mission statement: We don’t trade stocks, we trade patterns.

Now, if that’s confusing to you, stick around a while and you’ll get it eventually. It’s a matter of repetition and study.

The main thing to know is that the patterns repeat.

And we’re seeing examples of these patterns daily…

• Red Candle Theory (RCTs)
• Dip and Rips
• Dollar Cross plays
• Short Squeezes
• Weak Open Red-to-Green
• VWAP holds
• VWAP reclaims…

All of these patterns exist. Now, if you respect the patterns…

This is a Target-Rich Environment

Again, I’m repeating myself, but I really want you to get it…

There is nearly unlimited opportunity right now.

But if you’re the type of person that trades without a trade plan and doesn’t respect stop losses?

It’s gonna be really rough.

It doesn’t stop with your trade plan, either. Write this one down…

Do not believe in these stocks.

Most of what we trade are terrible companies. Do not believe in them. That’s not what we do here.

How To Be Different From the 90% Who Fail

Now, if you just buy some random penny stock at some random price with no plan…

…and hold and hope…

It’s going to end badly for you.

That’s what the 90% do.

All it requires for you to be different is to commit to only trading the patterns and only trading with a plan.

It’s that simple.

If you respect the rules, there’s unlimited opportunity. If you don’t, good luck.

My Take

Yes, it’s the dog days of summer, but I continue to be bullish on this market.

Now, does that mean trading is easy and you’re gonna get it right away? I mean, if this is a target-rich environment, shouldn’t it be easy?

That’s not what I said. Trading is really hard. It’s very difficult. I’ve always been a problem solver, a solution-oriented person.

So, if you’re dealing with adversity, that’s not a bad thing. That’s the way it is because trading is a lot like entrepreneurship.

What are the big reasons people do, or do not, succeed at entrepreneurship?

It really comes down to mindset and problem-solving.

Trading is a lot like that and I don’t think there’s any better place to be than right here with us at StocksToTrade.

Watchlist

Profusa, Inc. (NASDAQ: PFSA) did a 1-for-4 reverse stock split that took effect on Monday (August 17).

Now, I don’t much like reverse splits on day one, but after that it gets interesting.

With PFSA, it was the third reverse split this year. One share today was 7,500 shares back in February.

The float today is 605K, meaning any volume can create BIG moves.

On My Radar

• Will Anthropic be the biggest IPO of all time?
• On again, off again. Eventually it will end
• We should keep building infrastructure like this forever
• In case you missed it, yesterday I said to watch IP Strategy Holdings, Inc. (NASDAQ: IPST) for a short squeeze over $9.50 thanks to my Panic Point Terminal algo. Yeah, buddy: