Timothy Sykes created a 7-criteria checklist he uses to decide if he wants to make a trade.They include pattern, price, ease of entry and exit, as well as risk and reward ratio.At the time, he had no clear understanding of what he was trading. He tried large-cap stocks, followed fundamentals, and monitored different indicators. But he never got ahead and was lucky if he kept a 50/50 win-to-lose ratio.
Using indicators that aren't the best fit could create noise and even cause analysis paralysis, he noted. For example, if a stock's price is below the VWAP, it may lure many traders into shorting it, he said. But it becomes crowded if everyone looks at the same indicator to make the same decision. This could lead to a short squeeze as traders with short positions scramble to buy shares to cover themselves, driving the price back up.
He estimates his win-to-lose ratio is around 70/30. Insider viewed the IRA accounts Sykes trades in. Norman Zadeh, the founder of the United States Investing Championship, also reviewed Sykes' statements, and said his gains between 2020 and 2022 totaled 630%. His income currently comes from his online program"Millionaire Challenge," in which he teaches others how to become traders.
"I compare it to weightlifters," Sykes said."If you've ever been very ripped or athletic in the past, it's easier to get athletic again with just a little training versus somebody who has never been fit. It's really difficult to get fit."is weighted out of 10. This could be a news release or a rallying hot sector like AI. It's often the initial reason a stock suddenly gets attention and price action.
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