The presents are unwrapped. The cookies are gone. Maybe there’s a bit of holiday ham to remind us of our relaxing Christmas holiday week…
Now, it’s back to the battlefield.
The last trading week of the year is here, and things aren’t slowing down.
The market was shortened last week while small caps continued to spike. Even during historically lazier times to trade — holiday weeks — the opportunities keep coming.
And this week, the market is closed for New Year’s Day tomorrow, Thursday, January 1.
Traders are back at their desks this morning, ready to capitalize on the end-of-year momentum.
Everyone’s chasing a year-end window to lock in gains. Not to mention the institutional tax-loss selling that always promises volatility. Add that to the multitude of national economic catalysts swirling in the news…
There will be fireworks this week. And not just for New Year celebrations.
Reset After a Holiday Week
Every trader has the potential to rust a bit after a break.
The key is to look before you jump.
Volume could surge this week, but that doesn’t mean you should trade every mover you see. The best traders treat the first couple of hours back like a warm-up lap, not a race.
Here’s my post-holiday checklist. The same one my top students use to find the cleanest setups while everyone else is shaking off eggnog brain:
☑️ A stock under $5 per share. Cheap stocks move fast. That’s our playground.
☑️ At least a +20% intraday spike. No spike, no trade. If it’s not moving, it’s not worth our time.
☑️ Volume above 1 million shares. Liquidity means control. Without it, your entry and exit don’t matter.
☑️ A float below 10 million. A low float equals a potential for a larger spike. That’s where the magic happens.
☑️ A real catalyst. Don’t trade noise. Trade news. Earnings, partnerships, contracts, filings, something real that moves price.
☑️ A pattern I recognize. First green day, morning panic dip buy, or breakout. I only trade the ones I’ve studied a thousand times.
Stick to the checklist.
It’s how I force myself to focus on the best plays and minimize the risk of trading with holiday brain fog.
Don’t Chase — React With Precision
After the holidays, traders love to chase anything that’s up 50% on the day.
That’s how accounts die in the last week of the year.
Instead, wait for price-action confirmation.
Let the early runners exhaust themselves, then trade the secondary plays. Dip buys, breakouts over morning highs, bounces off of VWAP.
We’re not swinging for the fences. We’re just taking the meat of the move with trade patterns that repeat in the market.
Cut Losses Faster Than Ever
Volatility cuts both ways.
The same energy that fuels 100% moves can crush you just as fast. That’s why the first rule never changes: Cut losses quickly.
It’s not about being perfect. It’s about staying alive. Protect your capital and you’ll still be in the game when the next perfect setup appears.
Ego kills traders in December more than any other time. Don’t be the one trying to “make back” what you missed during the Christmas break.
Trade small, trade smart, and remember, the goal isn’t to trade more. It’s to trade better.
Make This Week Count
This is the final sprint before the new year.
And it’s our chance to prepare for 2026.
Review your trades. Study the charts. Reconnect with your trading process.
Because the traders who start strong in January are the same ones who used the last week of 2025 to shake off the rust and get focused again.
Let’s end 2025 the same way we started it: Trading smart, staying humble, and learning from every single move in the market.
If you have any questions, email me at [email protected].
Cheers,
Tim SykesEditor, Tim Sykes Daily
