Right now there are lots of big spikers, and I’m grateful for every opportunity the market gives.
But when the market is like this, I fall back on something I’ve been saying for years.
Sometimes the best trade is no trade.
It’s a simple concept, but right now it’s super important.
Because in a chopfest…
You MUST sell into strength. Do not overstay, because a winning trade can turn into a loser in seconds.
Remember, one of the most important lessons every trader should learn is when to sit on the sidelines
Some of these stocks are moving SO fast, and the price action is SO choppy, that even experienced traders struggle.
For example, Parabolic Technologies (PARA) was the best spiker on Tuesday.
It went full supernova, from the $1s to the $8s, in just a few minutes…
Source: Stocks To Trade
PARA 11/3/26-11/4/26, 1-min candles, 1-day supernova.
PARA cracked nearly as fast, then faded the rest of the day and into premarket trading yesterday.
The final nail in the coffin was the premarket financing that sent the stock to $0.29 per share.
Price action like that is scary, and it’s a very good example of what we’re seeing right now.
It might seem okay if you’re on the right side of the spike, but once the trend is broken, you don’t want to be anywhere near it.
Here’s another example of why sometimes it’s better to sit on the sidelines.…
Spikes Fast, Fails Fast
Not long after PARA spiked, I tried to trade the same kind of move on Sensus Healthcare (SRTS).
Too bad it didn’t go full supernova.
Even though I was up 10% in a few minutes…
Source: Stocks To Trade
SRTS 11/3/26, 1-min candles, scary spike and fail.
SRTS dropped so fast I lost 8.4% on the trade.
You have to be extra quick with these plays.
One thing you have to remember about this niche is that most of these companies are terrible.
And a LOT of them are the focus of shady chat rooms orchestrating…
The Classic Pump and Dump
VCI Global Limited (VCIG) looked EXACTLY like a classic chat room pump and dump.
Source: Stocks To Trade
VCIG 11/4/26, 1-min candles, looks like a pump, smells like a pump & acts like a pump…
Again, anyone who caught the front side was looking at a move from $5 to $8. But if you got caught on the backside, it was VERY scary.
Sometimes The Best Trade … Is No Trade
You do NOT need to trade every day.
Certainly, you do not need to trade any of these extra-choppy stocks, as they can get ugly fast.
If you decide to trade these fast movers, trade small and be ready to cut losses quickly (or sell into strength).
If you have any doubts, just sit on the sidelines until the market settles a little.
Now go study.
If you have any questions, email me at SykesDaily@BanyanHill.com.
Cheers,
Tim Sykes
Editor, Tim Sykes Daily
