Ep 58 – Should You Trade The Morning Spike?
In today’s episode, the Steady Trade Podcast brings you the eighth installment of a new series, where hosts Tim Bohen and Stephen Johnson share some of their favorite trading resources.
In past several episodes, they’ve featured Trader Checklist example clips from Tim Sykes, complete with commentary and discussion. This episode continues the discussion, with more trading examples from Sykes and detailed analysis from your hosts.
Be sure to check out this episode on YouTube to see the accompanying video!
About Trader Checklist
Trader Checklist is a video by Tim Sykes that features 14 chapters of invaluable trading information. It’s available for free online, so don’t miss out.
To enter, first you need to watch Trader Checklist. Then, at the end of this multi-part episode, you’ll be invited to take part in a quiz based on the Trader Checklist clips. Listen to the full episode for more details.
Mastering the Sykes Sliding Scale:
In today’s episode, the clips focus on more Trader Checklist example trades, using the Sykes Sliding Scale (SSS) to determine a stock’s worthiness.
Clip: Here, Tim Sykes talks about a stock he bought at $5.30 and sold at about $6. Awesome, right? The stock kept climbing, but at a certain point it started to fall.
Does this mean it’s no longer a good investment? Not necessarily. When it falls back down it can be a good dip buy. When should you dip buy, though?
The Steady Trade take: This is a great example of why it’s so important to look at a stock’s past performance. Both Tim and Stephen agree that while history may not repeat itself to the letter, it usually follows closely enough that it should be taken into consideration.
By taking the time to look at the historical performance of a stock, you can make a better determination of when to buy and when to exit. By considering these important aspects of the trade, you’re more likely to be able to create (and stick to) a solid trading plan.
Don’t miss their specific tips on why you need to look at different timelines to determine support and resistance!
Clip: Are you familiar with supernovas? These are stocks that have gone wild recently. Tim Sykes loves them, and presents several supernovas he’s been looking at as potential buys.
He talks about what he looks for, including keeping a close eye on whether they start up-trending with volume.
He also explains what he looks for premarket and in the morning spikes, and how these findings can be an indication of bigger movement in the future.
The Steady Trade take: Tim and Stephen evaluate Sykes’ thought process, and talk about what they both look for in spikes.
Which is better, they muse, the morning spike, or the 10 a.m. spike? In the episode, you’ll learn important lessons about the various spikes throughout the day and how to use them to your advantage.
Maybe you’ll agree with Tim Bohen’s adage of “letting the stock prove itself,” or maybe you’ll prefer to take more proactive steps in the trade.
No matter your approach, you’ll gain insight on ideas for how to approach supernovas, including how to choose a stock and what signs to look for to stop out.
Clip: Here, Tim Sykes introduces a stock he’s looking at and guides you through the process of scoring it with the SSS.
This a low-float, high-volume stock looks like a dream: It has a history of running, and it’s a top percent gainer …
How do you think it will score on the scale?
The Steady Trade take: Before they listen to the final score from Sykes, they do their own rating of the stock based on the scale.
They look at the benefits, like easy entry and exit, and also consider tips for troubleshooting and timing such a trade, since the time of day really matters.
You’ll also learn a great tip about how to re-enter a potential trade in the afternoon, even if you miss out on the morning action!
Got an inquiry?
Did this episode inspire a question or comment for Tim and Stephen? Visit the “submit your audio” portion of the website to ask us anything.
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