I’m not sure if you realize it or not, but my students and I have been ON FIRE these past few weeks, with milestone after milestone being achieved:
— Arick Russell (@ArickRussell1) December 8, 2016
— CT (@christizzy) December 9, 2016
— Mithil Reddy (@sai_mithil) December 9, 2016
Large or small account, so many of my dedicated students who study allllllll my DVDs here religiously are growing their accounts 2x, 3x, 10x, over several months and years and lately, the action has heated up so much in my little niche that some students can quintuple their accounts literally overnight:
— Brooks Williamson (@Beezyyweezyy) December 9, 2016
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But, you don’t just have to learn from millionaires. Even students with far smaller accounts have experiences and trades worth learning from…take my student Lawrence, below, who just made $6,000 last month alone.
What Lawrence has is perspective and there are plenty of you who could use a sizable dose of it. Have you been blaming your inability to make $6k in a month on the market? Lawrence hasn’t. Have you grappled with doubt and been indecisive, losing your shirt in the process? Lawrence hasn’t.
In fact, there are quite a few things Lawrence has and hasn’t done that make for a cash-winning balance.
Meetstudent Lawrence Utigard and check out his $6,000+ in profits for November:
I was shocked, too. In fact, when Lawrence initially let me know he’d racked up $6k in profit, I had to go back and confirm with him that it was just for the month of November.
This could you be you in a single month—if you pay attention to the 6 lessons Lawrence learned last month and the observations that he made as he psycho-analyzed himself and the market.
Lessons from Lawrence:
Lawrence: 1. “The Market doesn’t suck! Sometimes, my trades do and the market is always right. Because it’s bigger than all.”
Value might be subjective, but the market—well, the market is what it is. It’s never ‘wrong’. Until you start seeing the market as a living, breathing thing that is bigger than you are, you aren’t likely to understand how it can all come together. Lawrence has figured it out. The market is bigger than he is and how he reacts to that is key. In this case, he figured it out to the tune of $6k. That’s really taming the beast.
My take? I REACT to what the market does and I don’t worry either way, as there’s always opportunities to profit, long and short, if you prepare meticulously, like my top Millionaire Trading Challenge students and I have learned to do.
(Check out my October piece on the market, too).
Lawrence: 2. “Don’t make random trades.”
I’ve said it before and I think it’s worth saying a million more times: Trade random stocks and you’re going to get random returns. And, don’t trade at random times. The first and last half hour of the trading day really matter. Wait for the breakout. Don’t just buy at random times, you’ll get spooked (if you’re disciplined enough to take losses quickly).
There is absolutely nothing random about trading. This isn’t Vegas and the house doesn’t have to always have an edge, if you PLAN AHEAD AND CHOOSE GREAT TRADING SET-UPS where the odds are in your favor…see this free guide, if you want to learn how to create a solid trading plan
My trades are all planned for/played out in my head, before I even enter the position…always have a plan BEFORE your trade. Choose specific points in the chart and stock price to represent your ideal trade; your mental stop loss and/or an acceptable point at which you’d get out, if the trade is taking too long to play out.
Lawrence: 3. “When in doubt, get out. The same goes for when you lose control.”
Doubt is the end-all for a trader. If you let it rule your day, you won’t make any progress. If a stock isn’t acting exactly like you want it to or expect it to, get out or you risk a reversal.
As another guest blog post:student noted in a
We all know that a trader has to act fast, they have to make big decisions in a short amount of time to make sure their orders are executed. And, as a trader you mustn’t second guess yourself. Therefore, my third emotion of trading is DOUBT. At the end of the day, as a trader you don’t actually know what the market is going to do, you don’t know if the stock is going to go up or down. So, all that you can really do is to stick to the strategy that Tim has taught you through his video lessons and follow your trading plan as the day goes on, making quick decisions based on structured analysis. If you find yourself with large amounts of doubt and too much time passes, don’t make the trade. You won’t be thinking properly. Just stand up and walk away for a couple of minutes, drink some tea and calm it down.
Lawrence: 4. “Follow the rules.”
While I can’t be sure what rules Lawrence is following, I’ve given you my basic list before, so stick to them. Here’s the short and sweet version, but you can read more here (print this off and slap it on your computer screen to remind yourself what you need to be thinking about at every move):
- Rule #1 – Cut losses quickly
- Rule #2 – Track everything
- Rule #3 – Pay attention to volume
- Rule #4 – Never invest more than you can lose
- Rule #5 – Get out of trades when they don’t go your way
- Rule #6 – Be able to go both long and short
- Rule #7 – Focus on risk-reward
- Rule #8 – Never fall in love with a stock
- Rule #9 – Don’t let your ego get in the way
- Rule #10 – Every trade is a lesson
Lawrence: 5. “Get out when your losing control.”
This is my rule #1 on every single DVD, webinar, video lesson….most traders lose money because they don’t follow rule #1…don’t whine, don’t double down, don’t hold and hope…just cut losses quickly when a stock is going against you and don’t let a small loss turn into a potentially big disaster. This is one rule which has no debate and its VERY clear cut.
Lawrence: 6. “Pick winners; manage small losses.”
Listen, I lose roughly 25-30% of the time and even many of my small gains are “misses”/or scratches where the stock didn’t do what I expected, so I exit quickly and play safe. Small losses and small gains don’t matter to me–they don’t move the needle on my overall account growth AT ALL; the key to my overall success is cutting losses quickly and exiting trades that don’t work, while sometimes winning big. 90-95% of traders lose because they don’t manage their losses and they let small mistakes turn into big disasters…So, follow these key stock market rules.
So, when Lawrence—who is in his 5th month as mystudent—asks me what I think, “Sir,” about his $6k in one month win, I can only say that I hope the rest of you who haven’t caught on or caught up will take some of what Lawrence says home with you.
Lawrence, keep it up and we’ll be watching—and hoping—you net another $6k (or more) this month…just keep taking it one trade at a time and plan well. Then, execute your plans, CONSERVATIVELY!