We’re STILL seeing giant supernovas — massive, explosive trading patterns where a low-priced stock can SOAR 100%, 500%, or even 2,000% fast.
The moves are just insane.
Last Monday, Zhengye Biotechnology Holding Limited (ZYBT) did the seemingly impossible, going from $1 to the $11s…
Source: Stocks To Trade
ZYBT, 3-day, 1-min candle, 1-day supernova.
Then on Tuesday, China Pharma Holdings Inc. (CPHI) went big and loose…
Source: Stocks To Trade
CPHI, 2-day, 1-min candle, 1-day supernova.
CPHI squeezed from $1 to $19+ before dropping back down to the $6s.
Then, in after-hours trading, it spiked again to the $16s before dropping back to the $8s.
The company’s toxic offering dropped it all the way back to the $1s.
I’m proud of so many students taking $1, $2, and even $3 per share on these.
But I’m also concerned because some of them get SO angry when they sell too soon.
With that in mind, let’s put things into perspective (and see why I want to pull my hair out)…
Your Job Is To Grow Your Two Accounts
It makes me crazy.
Even when I repeat myself over and over and over again…
Some people come to trading thinking it’s a “get-rich-quick” scheme.
It’s not (and never will be).
Do some traders make a great living? Yes.
Do some traders make what might be considered a decent yearly salary in a week? Yes.
But the reality is … 90% of traders lose.
I don’t say this to discourage you.
In fact, I want you to be encouraged because the losers have ZERO discipline or risk management.
If you can learn to identify patterns, learn to take singles and avoid big losses…
You can be well on your way to growing both of your accounts. But you have to do it in the right order…
Account 1: Your Knowledge Account
Start by learning how real traders do it. Learn to recognize the patterns as they happen.
Don’t fall for the scammers or anyone who tries to tell you it’s easy.
For example, Zhongchao Inc. (ZCMD) spiked from the $1s to the $11s last week.
Source: Stocks To Trade
ZCMD, 1-day, 1-min candles, 1-day supernova.
But look closely at that chart. See all the gaps? Those are volatility halts.
You do NOT want to get caught in those, because you have ZERO idea whether it is going to skip up or down out of a halt. You don’t even know when the halt is coming.
Here’s something to add to your knowledge account…
You should NEVER try to take the whole move. If you think that’s the answer, then it’s time for a reality check.
None of my 50+ millionaire students takes the whole move on ANY trade. And they ALL grew their knowledge account first.
It really doesn’t matter where you are on your journey, you MUST continue to gain knowledge.
Only THEN can you grow…
Account 2: Your Trading Account
Your trading account is almost a “lagging indicator” of how much knowledge and experience you’ve gained (seriously).
It BLOWS MY MIND when people get a piece of a +1,000% runner and then get angry because they only made $1 per share.
Your trading account grows OVER TIME.
It takes repetition, discipline and the decision you make today to study hard.
Let’s keep putting things into perspective.
Jack Kellogg is one of my most successful students.
He’s now made $26M+ from trading.
But do you know how long it took Jack to even break $100K?
Source: Profit.ly
Based on Jack’s PnL chart above, it took roughly seven months.
But did you know Jack lost his first year? He almost quit, tried something else to make money and then FINALLY crossed $100K in profits more than a year into his journey.
Let me make one thing clear: Jack is exceptional in that he stuck with it and built his knowledge account.
Only THEN did he start to slowly grow his trading account.
Here’s the Key To Growing Your Two Accounts
There is no replacement for time, effort and experience.
I’m still at it, even in Hawaii this week.
Hiking in Hawaii.
It’s beautiful, but the time zone is atrocious for waking up extra early, so I’m mostly focused on regular and after-hours trading for now.
Who else is up studying, reviewing your charts/scans or making your watchlist for today?! WHO WANTS IT BAD ENOUGH??
Seriously, let me know at SykesDaily@BanyanHill.com.
If you really want to break free…
You MUST learn everything you can about the right way to trade.
These big runners are incredible.
But they’re also very choppy (and scary if you’re not prepared).
THIS is the answer…
Study HARD!
Have a great Monday and I’ll see you tomorrow.
Cheers,
Tim Sykes
Editor, Tim Sykes Daily
