This market is hot for day trades. It doesn’t matter if you’re trading RCTs, dip and rips, Rubicon crosses, Oracle plays, Flux plays, or short squeezes.
I have never seen a market that rewards good decision-making more than this.
Tim Sykes Calls This “A New American Wealth Event”
Table of Contents
The Big Picture
Now, the inverse is true, too. I’ve never seen a market that punishes poor decision-making more than this market.
What does that mean for you?
Plan Every Trade and Be Ruthless Executing the Plan
If you trade patterns, follow the rules, and you’re ruthless about stop losses, the opportunity is unlimited.
If you chase, trade without a plan, break stops (or have no stops at all), you’ll get punished.
Day trading discipline starts with having a trade plan.
Three Keys to Every Trade Plan
I never enter a trade without knowing my entry, my stop loss, and my target. Those are the three most important parts of any trade plan.
Now, that should be obvious, okay? But I can’t tell you the number of people who just pile in without any other reason except “It’s moving fast.”
Slow down, hoss. Take a deep breath. Chaser’s Anonymous will still be there if you need it.
Know Your Entry
Professional traders know what price they’re going to enter. They know what the price action has to show them based on the pattern. If they miss their entry, so be it.
Now, it doesn’t necessarily mean the trade is dead. Sometimes a missed entry just means a new plan based on a different pattern or time of day. There’s usually more than one entry, okay?
Know Your Stop Loss
Know the number, not a percentage. It’s all based on price action, so have a clear number. Know where the trade is broken based on the chart and price action. That’s your stop loss.
Know Your Target
My friend, you wouldn’t believe how many times a week I hear this: “Tim, I’m in XYZ stock. When should I get out?”
I never enter a trade without knowing my target. If the stock hits my target, I take gains. If it hits my stop loss, I take the loss. I recommend you do the same.
“What if the stock keeps going higher? Don’t you feel bad because you missed it?”
No. That’s not a question professional traders ask. There is ZERO negative emotion around selling once a stock hits your target, okay?
Finally…
Never Ditch the Plan Because You’re Down
Winners hold winners, losers hold losers. Do NOT break your stops. If you do it, even once, you’ve taught your mind that it’s okay.
Now, you might need to adjust your plans based on data you’ve collected.
For example, let’s say you always get stopped out but 50% of the time the stock runs after you get out. You might need to widen your stops.
The key is to write it into your plan, test it on real trades, and collect data. But don’t make it up as you go.
Whatever you do, don’t let yourself get fooled by a bad choice that worked out in your favor. Odds are, it won’t happen again.
My Take
I love markets like this because I’ve always focused on discipline. I always have a plan, and I always follow that plan. If you can be disciplined and responsible, the sky’s the limit right now.
Now, if you trade randomness and rush things and act impulsively, it’ll end badly. That’s your choice to make.
If you can plan your trades and trade your plans, you will be rewarded.
Watchlist
On Monday (Sept 28), Stablecoin Development Corporation (AMEX: SDEV) was my Daily Double Down pick, with a signal at $1.79.
It didn’t go on Monday. Instead, it went just after the open yesterday:
SDEV 9/28-29/26, 5-min candles, Oracle signal hit, potential continuation play
As I write, SDEV is holding VWAP just above one of the Oracle support and resistance lines. If it continues to hold, look for breaks above the major resistance at $3.81. If it trades sideways today, watch for a day-3 surge tomorrow.
On My Radar
- President Trump hosted AI executives yesterday to discuss innovation versus oversight
- The government also launched its new AI-driven site: America.gov
- Meanwhile, Gemini and Grok are the bots of choice on the new website (sorry, Dario, doom-and-gloom gets you nowhere)
- Make this trade at 9:30AM on Monday (seriously, check it out)