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Are You Addicted To Wall Street’s Favorite Drug?

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Written by Timothy Sykes
Updated 1/21/2026 5 min read

7 out of 10 Americans are addicted to a drug they don’t even know they’re taking.

In a Gallup survey, 71% of U.S. investors said passive investing beats active stock picking for long-term returns, with only 29% taking the other side.

They’re hooked on “buying and holding.” They buy shares in index funds and sit on them … forever.

The main reason? Index investing is easier (and most people are lazy)

The average person is unwilling to learn chart patterns, study with #NoDaysOff, or work on improving their trading psychology.

But beneath the surface, the problem is actually deeper and more concerning than that…

There’s a bogus narrative, pushed by the financial news media, that says “Retail traders will never beat the market…”

That’s what they want you to think.

But it’s completely, totally, utterly false.

Guess what Wall Street’s #1 product is? Exchange-traded funds (ETFs).

Wealth managers, mutual funds, and 401k providers make boatloads of money directly from the laziness of retail investors.

This is exactly why CNBC tells you to buy index funds. 

They don’t want you to trade. They don’t want you to beat the market. 

They want you hopelessly addicted to buying and holding, like a junkie looking for a fix…

Because it makes them rich.

But there’s a much better way to build your financial future…

My Millionaire Students Prove Wall Street Wrong

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Just ask any of my 50+ millionaire students…

Jack Kellogg started as a valet with a burning passion for trading.

He joined my Trading Challenge and started studying small-cap momentum cycles every single day.

While passive investors were buying index funds and hoping the market went up, Jack was trading parabolic moves on low-float runners.

He didn’t try to time bottoms or guess direction. He bought momentum, rode the wave, and sold into the spikes.

When retail-driven bull runs gave him favorable conditions, he pressed his edge. When they didn’t, he sat out.

Now Jack has $25 million in verified lifetime profits.*

Matt Monaco started as a broke college student.

He took a more methodical route. Slow, conservative, and patient.

He built his account gradually over the years with tight risk management and high selectivity.

Fewer trades, higher conviction.

He sat out choppy conditions entirely while index investors were white-knuckling through drawdowns…

But when volume and momentum returned, he was ready.

Now Matt has over $2 million in verified lifetime profits.*

See what my millionaire students have in common?

They trade volatility, not index moves. They cut losses immediately. They size up and go big only when multiple indicators align.

Most importantly, they disconnect their strategies from the major indexes.

While passive investors sat helplessly watching their portfolios drop 20%, 30%, 40% during pullbacks, crashes, and bear markets … my students and I controlled our destinies.

We were selective and specific. We traded like snipers. We chose when to trade and when to sit in cash.

That’s the difference between active trading and passive investing.

One gives you complete and total control, the other makes you a hostage to the indexes.

Your choice.

Why Most Investors Will Never Beat the Market

Imagine being a long-term investor in 2000, 2008, or 2022.

Holding a huge basket of stocks, powerless to do anything but watch them tumble lower week after week, month after month…

That sounds terrible to me, especially when there’s a much better alternative:

Trading.

When you’re trading, there’s no need to sweat downside moves in the overall market.

(I actually love red days because the major indexes don’t control the direction of my portfolio.)

As a trader, you control your destiny. You’re making the decisions. You’re in the driver’s seat.

And that’s priceless.

I’ve been in the markets for decades. I’ve heard every bit of fear, uncertainty, and doubt directed at traders like you…

The guys who run Wall Street desperately want you to think the market is an insurmountable beast you’ll never overcome.

But don’t forget the story of David vs. Goliath. 

You’re David, Wall Street is Goliath…

Armed with the right slingshot, even the most unsuspecting underdog can slay the giant. 

Most of my 50+ millionaire students started in the same place…

Now it’s your turn.

Cheers,

Tim Sykes

 

*Past performance does not indicate future results



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Timothy Sykes

Tim Sykes is a penny stock trader and teacher who became a self-made millionaire by the age of 22 by trading $12,415 of bar mitzvah money. After becoming disenchanted with the hedge fund world, he established the Tim Sykes Trading Challenge to teach aspiring traders how to follow his trading strategies. He’s been featured in a variety of media outlets including CNN, Larry King, Steve Harvey, Forbes, Men’s Journal, and more. He’s also an active philanthropist and environmental activist, a co-founder of Karmagawa, and has donated millions of dollars to charity.
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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”