I remember it like it was yesterday…

Starting as a wide-eyed newbie in Tim Sykes’ Trading Challenge, there was a lot I didn’t know yet. 

But once I discovered his “Pennystocking Framework” DVD, which details his 7-step framework … I was hooked, to say the least.

Look, here’s the truth…

Without the lessons I’ve learned from Sykes, I’d be lost. And I definitely wouldn’t be a multi-millionaire trader. 

So, listen up…

In today’s unpredictable market, these tips are more important than ever.

With that in mind, keep reading to see four of the most game-changing pieces of wisdom I’ve learned from Sykes…

Focus on Ideal Setups

I’ve said it before and I’ll say it again — you must stick to trading the best setups only.

If I had to choose one key to my success in the stock market, it would be focusing on volatile momentum stocks. 

These stocks tend to provide the best volume, volatility, and price action for day traders.

Every time I break this rule and trade a setup that doesn’t fit my boxes, I regret it. 

Do this — and this alone — and you’ll already be ahead of the curve.

So, how do I identify these plays? In my opinion, ideal setups contain the following elements of ‘The 3-Item Checklist’:

• Above-average volume

• Exaggerated price action

• A major catalyst

Do yourself a favor — cut your watchlist down to the stocks that check these boxes — and focus on plays with the highest probability of success.

Pay Attention Near Big Round Numbers

Volatile stocks often encounter support and resistance levels close to round numbers like $50, $100, $500, and $1,000. 

This isn’t a coincidence. These numbers have a psychological impact on many traders. 

When momentum stocks approach these levels, many traders set sell orders at the same prices, creating resistance to further price increases. 

Have you ever noticed a stock dropping just a few cents before reaching $20, $50, or $100?

That’s what I mean. And this principle works the other way too…

If a well-known stock is falling, buyers will set buy orders at specific prices as it declines, hoping to buy it at a lower price. 

Stocks often bounce off these key levels on the way down, just as they encounter resistance on the way up. 

Remember these round numbers and watch them closely. Be ready for a change in direction and you just might catch it at the perfect moment.

Be Aggressive on Perfect Patterns

I’ve missed out on a few big trading opportunities recently because I doubted myself. 

Looking back, the chart patterns were flawless. But I allowed small technical concerns and a lack of overall confidence to stop me from pulling the trigger.

I’ve learned from my mistakes. If the pattern is perfect for me, it’s time to be aggressive. 

This is especially true for traders with small accounts. You’ve gotta seize golden opportunities when they come your way if you wanna grow a small account quickly. 

But remember, don’t risk more than you’re willing to lose. 

Take the time to do your research and study diligently. 

As you become more knowledgeable, you’ll gain confidence in your trading strategy. 

Then, when the pattern you’ve been patiently waiting for finally appears, don’t hesitate…

Trust your gut and pull the trigger.

Know Your History

Last, but certainly not least — know your history.

This lesson is especially timely now as the stock market is seeing one of the most volatile periods in decades. 

Even though the stock market is filled with numbers, Sykes says he views himself as more of a history teacher than a math teacher.

The market isn’t a perfect science. You’ve gotta understand the historical context of how stocks tend to trade. 

No matter what stock you’re trading, you should learn everything you possibly can about its history. 

Pay particularly close attention to the following historical metrics:

• Prior price action in the chart

• The company’s earnings history

• Major catalysts in the past

Study how the chart has reacted throughout time. Then you can form a strong game plan for what may happen in the future.

You can also take the same steps when evaluating the charts of the major indexes…

Understanding how the broader stock market has reacted to certain periods throughout history can potentially help you prepare for future moves in the major indexes.

Think about the price action in the major indexes during 2022. Had you really studied prior bear markets, you likely could’ve predicted certain moves that happened before they took place.

For example, if you knew that stocks generally struggle as interest rates rise, you might’ve had the foresight to buy SPY puts as soon as the Fed began its hiking cycle.

Bottom line: Know your history and you’ll be a better trader for it!

Final Thoughts

Tim Sykes’ teachings have had a profound impact on my journey as a trader. 

The lessons I’ve learned from Sykes have not only helped me avoid common pitfalls but also propelled me toward the millionaire milestone.

And in today’s ever-changing and unpredictable market, Sykes’ wisdom is more relevant than ever…

By focusing on ideal setups, paying attention to round numbers, being aggressive on perfect patterns, and understanding stock market history … you can potentially gain a significant edge over your competition.