7 Crucial Tips For New Traders - Timothy Sykes

7 Crucial Tips For New Traders

I am a self-taught trader and that SUCKED! Doing it all by myself, I was forced to learn a lot the hard way and through trial and error along the way and this is, in part, what inspired me to create the Tim Sykes Millionaire Challenge to be the mentor to people that I never had. I wish I knew the crucial steps to success, like I’ll provide for you below.

Download the key points of this post as PDF.

You have just a few days left HERE to save $1,000 off my upcoming annual conference…go HERE ASAP as this will sellout at full price, not mention earlybird prices where you will save $1,000!

I didn’t have a mentor or a program like mine.  But, in retrospect, I wish I had. I probably would have made money far quicker and not made so many bone-headed mistakes if I had.

But lamenting the past won’t change anything. Instead of complaining, I want to help you so that you don’t have to make the same mistakes I did! In addition to offering my trading challenge, here are seven pieces of advice that I’d like to offer new traders who are where I used to be.

1. Seek out an education. The idea of just jumping in and starting to trade penny stocks might be tempting. You’ll figure it out as you go, right? Not so fast.

I’m all for going for it, but take a step back before you do anything hasty. Remember, this is your money, and you don’t want to lose it. Before you trade, it’s smart to learn a bit about the process and theory behind trading so that you don’t lose your money in ways that could easily be avoided.

The Challenge was created for this exact reason. It is designed to educate the Tim Sykes Millionaire Challenge team on trading in an applicable, real-life way. We progress into real advice and methods that you can put to work. I don’t want you to wait years and years to make your first trade, but I do want you to have an idea of what you’re doing before you dive in.

2. Have a willingness to learn. It’s best that you learn this early on in your career: as a trader, the need to keep learning will never end. Seeking out an education, as discussed in the previous point, is partially so that you can make educated trades. But it’s only the tip of the iceberg.

But if you really want to be a longtime, successful trader, you’ll need to have a will and a desire to learn. This is something that you basically want to turn on and never turn off. Keep reading, learning about the philosophies and methods behind successful traders, and stay interested in the world, both in terms of business and at large.

3. Know what you’re working toward. If you’re not working toward something as a trader, then your career will have little direction. So what are you working toward with your trading? What are your goals?

When you’re new as a trader, you should have strong clarity on what it is that drew you to trading. Money, obviously. But, money for what? A better quality of life? Really dig deep and figure out exactly what it is that you want to buy with all that money you’ll make. Tattoo that desire in your brain and think of it with every trade you make. It will help you stay motivated, which makes you a better trader. Having goals to stay committed to will keep you going when things get tough.

4. Recognize your strengths and weaknesses. It’s important to be able to identify your strengths and weaknesses early on as a trader. Basically, the sooner you identify them, the sooner you can streamline your trading. By recognizing your strengths, you can play to them, and adjust your study and trading schedule to suit what works best for you…every trade and student is different as we all have different personalities so it’s important to recognize this and adapt to whatever works best FOR YOU!

By recognizing your weaknesses, you can either work around them, or make a decision to become stronger in those areas. This might involve studying harder in certain areas, or taking the steps to remove bad habits from your daily repertoire and replace them with good habits.

5. Let yourself improve over time. Patience is a virtue when it comes to trading. Don’t expect miracles (or millions) in your first week. It doesn’t have to take an incredible amount of time to start earning money, but don’t rush it. Let yourself discover what works and what doesn’t, and get your footing as a trader…read this blog post if you want to learn more about patience and perseverance.

Slow but steady wins the race when it comes to developing skills as a trader. Don’t try to jump ahead, because there’s so much that you can learn along the way that can help you later. Giving yourself the room to learn and improve over time will take a way a huge stressor from your trading career, and it will also make the journey more enjoyable.

6. Network, network, network. Creating a network is important for any entrepreneur, and traders are no different. Come to this meetup in a few months and meet all my top trading challenge students and I and trade live with us too! Making friends with other new traders can create a positive support network and help you stay inspired. Making friends with traders who are further along in their career than you can give you insight and allow you to emulate their success (without copying).

A mentor, too, should be part of your network; this is a trader who is further along in their career than you who takes it one level further and acts as your adviser. Meeting with a mentor on occasion can inform your career, give you ideas, and help you know what career pitfalls to avoid.

Moreover, creating a strong network is a great thing for new traders, as you never know what opportunities your connections might afford you in the future.

7. Learn to love trading. If you walk away with nothing else from this article, take this advice to heart. If you learn to love trading, then you’ll be doing yourself a great service as a trader…the process and the journey is actually even more enjoyable than the rewards…the rewards are nice, don’t get me wrong, but learning to be self-sufficient is priceless as even if I lost all my money tomorrow, I know EXACTLY what I must to do get it back so I’ll NEVER be down for very long, no matter what happens.

And remember, too many people suck at their jobs and don’t excel because they don’t truly enjoy it…doing things that you hate is no fun. It makes the time crawl by, and it does nothing to improve your quality of life so don’t make that your future.

However, doing things you love makes time fly by (in a good way) and makes you feel vital and excited about your day, and about life in general.

If trading can become one of those things that you love, then your career will seem effortless and success will come to you far more quickly and more naturally.

These seven pieces of advice are vital for new traders. I wish that I’d had them when I was a new trader! So go forth and don’t make the same mistakes I did.

Please leave a comment below with which of these points make the most sense to you, #1-7, you tell me! 

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137 comments

Timothy Sykes

Hey Everyone,

As many of you already know I grew up in a middle class family and didn't have many luxuries. But through trading I was able to change my circumstances --not just for me -- but for my parents as well. I now want to help you and thousands of other people from all around the world achieve similar results!

Which is why I've launched my millionaire challenge. I’m extremely determined to create a millionaire trader out of one my students and hopefully it will be you.

So when you get a chance make sure you check it out.

PS: Don't forget to check out my free Penny Stock Guide, it will teach you everything you need to know about trading. :)

  1. Robert

    No.3 Know what you’re working towards. For me it is all about looking after my mother and father in their old age. Also, my retirement.

  2. Eric

    I like it I love it can’t get enough of it … Tim McGraw agrees … Find passion in trading …working toward a goal keeps you motivated, enjoy every minute of the journey .., especially the mistakes. So you learn … Even with a mentor you will make mistakes .. No such thing as perfect , a free lunch or a free stock pick … Don’t be a blind muppet sheep … Be an educated tasmanian devil who will tear the market to pieces ..
    Daily mistakes can happen, but you can decrease mistakes as time flies when you are learning the correct lessons in patience

  3. Eric

    Recognizing your strengths and weaknesses while getting an education will inspire you to improve every day .. The love for trading drives this process. The trading community provides a network of ideas that reinforce the importance of education to accomplish great things. if you are ready, the Sykes snipers await!! Be meticulous,calculated, and wait for the best opportunities … I guess this statement sums up every point on the list (Although not in the same order).

  4. Masdon

    Madson Silva appreciate so much the entire post, but this is the most!

    It’s important to be able to identify your strengths and weaknesses early on as a trader. Basically, the sooner you identify them, the sooner you can streamline your trading. By recognizing your strengths, you can play to them, and adjust your study and trading schedule to suit what works best for you…every trade and student is different as we all have different personalities so it’s important to recognize this and adapt to whatever works best!
    Thanks Tim!

  5. Patrick

    Point 4 and 7 were the ones I took to heart. You must pluck ideas from multiple sources to develop your unique way of doing things. What is the point of doing something your whole life that you hate? It makes no sense. If happiness is not in demand, what do we have?

  6. John

    #2 and #7 make the most sense to me because studying never stops you have to try and learn everyday in order to be the best you can be. To do that you have to love what you do.

  7. Lin Methvien

    All of these steps are important. But to me 1 and 7 stand out. Getting an education will give you a head start on becoming successful and developing a love for trading will cause all the others to fall in place.

  8. Andrew Taylor

    1) Recognize your strengths and weaknesses

    If you can focus on what you’re good and set aside your weakness but improve on it over time, you’re pretty much setting yourself up for higher success rate Steven Dux style.

  9. Jim A

    Know what you’re working towards. This tenet will help me by having a goal and making education my number 1 priority.

  10. Solange

    4,5 and 7 for me. Learn how to love trading and be patient. Getting education and recognizing your strength and weaknesses. Set a goal and always look forward to realizing them. My goals is to be the first multimillionaire female African lady trading stocks , take great care of my daughter which I can’t afford that right now, buy a luxurious house where I can called home cause I grow up not having one, ,become a philanthropist and a backbone to the less previledge and ophans, cause I have been there and I know how that place feels like. I have been following your lesson on YouTube for a week now . Still don’t have a trading account yet. But will create one as soon as I start understanding the general concept of stock trading. Thanks again Tim, God bless you.

  11. Brad

    Hi all,

    I stumbled apon Tim a couple of months a go. To be honest with you at first I was entertained by his enthusiasm and passion, yet I still felt like he was just another hyper and full of BS. I started out as an investor myself and turned 20k into 35k within 2mths and I made the classic mistake of having faith and loving the companies I was invested in sink and instead of protecting my capital I watched it dwindle back down to 25k within a mth lol. Why do I laugh, because I was new and foolish and to be honest I had no idea and if it wasn’t for my mistakes I wouldn’t have looked for some guidance and found Tim. After watching every video I could get my hands on, I’ve learnt so much and more importantly I’ve learnt and understood all my errors. I believe in what Tim has to say and no I’m not looking to be a puppet in this world. Everything Tim had to say has value and tims not asking you to be a sheep, he’s offering you enough knowledge and education that is so important if you want to protect your money, I’m not even going to say make yet, just protect your money at first because if you’re clueless you’re going to get chewed up and left broke and just be another 90%er to join the club of should of, could of, would of’s. This is the first time I’ve commented and I would actually like to thank you tim and I hope you do read this and everyone else and even know I’ve never met you, you’ve become a crazy yet positive and inspirational voice in my head. I will continue to read everything I need to and I’ll join your forum soon and stocks to trade as well when I feel educated enough to take the next step in following something I’m passionate about and hopefully begin living and not just existing as so many of us do everyday. Good work Tim and keep it up and for everyone else out there, read, read, read and believe in yourself.

  12. john jones

    Tim I can say, points #1 – #7 all make sense to me and each is equal in importance, because in the end I will have too use all of them to become the successful trader you want me to be. I got it !!!

    Thanks a Million

  13. Anonymous

    Letting yourself improve over time! You didn’t become a millionaire over night and neither will I understanding that it will take time will take the pressure off needing to know everything all at once, still learn as much as you possible

  14. Alex Ericksen

    Letting yourself improve over time! You (Tim) didn’t become a millionaire over night and neither will I understanding that it will take time will take the pressure off needing to know everything all at once, still learning as much as you possible, just don’t expect that it will be an over-night transformation.

  15. Ryan Gates

    My first week, been studying and taking in everything I can. Only made 35 and 50 bucks for my first trades but I’m so excited I can’t sleep at night for what lies ahead

  16. Henry

    Love the fact that you should always study and learn more. You never know it all there is so much out there.

  17. Didier

    All points make sense, and are true in all careers, however, #4 stuck out a bit more for me. To me it’s the area I would find most vital to work on and always be aware of. Knowing your strengths and weaknesses allows you to grow, eploit your strengths, work on your weaknesses to find that balance.

  18. Julio smith

    #3,7 reached me the most,understanding what it is your trying to achivie is a very important aspect to keep myself motivated,and learning to love trading is also pretty awesome because it makes it harder to loose in the end. Thank you Tim for these tips!

  19. Terrance

    I think #7 did it for me. Learn to love trading. Nothing lime being at a job that you don’t like.

  20. Angela Vaa

    All 7 of these successful tips make sense to me. Very helpful and encouraging. Thank you greatly.

  21. Dean Hiser

    Learning to know your strengths and weakness, #4 was the most important to me, however I liked them all. Thank you sir.

  22. Manas

    thank you so much tim for this short but much important lessons , we value your words ..!

  23. Richard

    Getting a good education is key for me, it will give confidence to go for your financial goals, you can then make choices in your life.

  24. Asandile

    No 3, know what you are working for keeps you pushing even if there is something that’s seems to demotivate you. I like to have specific goals so that I don’t get lost.Thank Tim

  25. Marinos

    all of it makes sense Tim.. Thank you for the education provided everyday 😀 i believe 4-5-7 makes the most for me even tho as i said all are important

  26. Chaz

    Tip #7 learn to love trading I think is the best lesson, the love drive you to do the other 6 tips! Thanks Young Sykes….looking forward to the conference in sept I’m coming all the way from the Middle East to attend!

  27. Nancasone

    All of them make sense and are in the right order; so thank you Tim, you’re truly a teacher in the soul some may call you a Father for what you provid… 😉
    Thanks again!

  28. Ana

    Every point is full of wisdom to me from #1 up to # 7, But this last one, is a very essential one, learning to be self-sufficient it is indeed priceless I guess touches us, all, no many could says they do what they truly love, life is too short to live it without passion.
    Thank you for sharing yours with us. Cheers!
    Ana dorky chick

  29. Ernest J. Rile Sr.

    I’m new at trading, but not at investing, I’ve been a part of many other high intense business endeavours. By far, this is the best training program and system I’ve ever witness. I’m loving the process, and the challenges that I face each day as a rookie trader, but with the training and mentoring that this program offers, I feel confident that I will succeed , but I’m gonna have to listen and follow instructions. They don’t teach you this stuff in MBA School, which is why I’m so excited about Tim’s program, This boot camp training is freaking amazing..

  30. Jamey

    All are great lessons to thrive from.
    I think we all get in to this to start our journey towards financial freedoms and motivation and persistence led us towards Profitly and Timothy Sykes. The rest is what you choose to do with it.
    1.) & 2.) That education from Profitly and Tim are great, so invest in yourself. I’m only a silver subscriber right now, but if you have the willingness to learn, even the video lessons will teach you more than enough to get you going. I’m up 40% in just a few months after having watched upwards of 500 video lessons so far.
    4.) The lessons have taught me where my strengths are in that I have patience to wait for my set ups that I’m after and more often than not I end up making mental trades only, of where I’d buy and sell just to learn from my thesis so I can refine.
    They’ve also taught me where my weakness are and now I look at how much of a float a company has and factor it in with price action. Some stocks just move to fast for me and I’m not comfortable trading them yet. That’ll come with experience.
    5.), 6.) & 7.) just seem to come if you put in the effort to starting your journey towards financial freedoms.
    Thank you for everything, Tim. Looking forward to hopefully joining the challenge and going big time from there.

  31. charlie

    awesome info mr sykes. just within the last few weeks i have followed you and have learn more than i have following others. read some of your ebooks and general info sent via email and have made what i earned in a month of 2800.00 to earning that in 2 weeks and looking at ending the year with my earning triple my salary. love the 7 things you mention and one sticks out the most was about my job(just over broke). what does it pleases a man to sit idle on something he dont enjoy and waste his life. were he can do something he enjoys, excel at it and life be more meaningful and prosperous.

  32. Jameson

    Number 7! You have to love what you do to be truly successful at it. Love the process and enjoy the ride. Thanks Tim!

  33. April

    Thank you Tim for these 7 tips. I’m am studying every chance I get. You an inspiration to me. I’m taking my time to learn to trade and understand the markets.

  34. Ivan F

    Know what you’re working towards! So when times are hard I’m motivated to stay committed. And make trading something I love. So I know if I lose all my money I know there’s THE one way I can make it back.

    Most Importantly for me, LEARN LEARN LEARN!! Knowledge is everything

  35. Narinder

    No.2 Kicks @$$ 4 me. One has to put that attitude of ‘what I think I know’ to one side, and be humble enough to accept a willingness to learn new approaches to education yourself, resulting in one’s own personal growth. Thznks Tim.

  36. DNN

    A willingness to learn at any age shows that one has a humble and mindset. Additionally, a willingness to learn takes one out of a current comfort zone and introduces them to a new way of thinking, thus showing them how their current train of thought hampered their ambition to unleash their full business and personal potential.

  37. Garrison Bardy

    For me all 7 tips made great sence and Im actually inclined to agree with you jumping in to any given situation with out being educated on the importance of any one particular field can be risky, foolish , even dangerous its like if a man hands a resume to a construction company and sees their building sky scrapers he might want to do that for a living but at the same time knows he needs time to learn saftey regulations ect ect , my point is here all the tips you’ve given will be properly utilized for me becoming a great trader one day and while I have no patience myself I can respect the fact that its a virtue nonetheless. Im really thankful for this more than you’ll ever know.

  38. Eze Fidelis

    Hi Tim ! Number 2 & 6 is most loved by me. In these TWO numbers you have said it all !

  39. Kevin

    Number 3. I want FREEDOM! Freedom to go where I want when I want, and not be shackled to someone else’s time clock making their dreams come true. Freedom and the ability to do for my family!

  40. MICHELINE

    1, 2, 6, and 7. The outcome to the best success life and experience is through Education….by learning= you know= you practice= you execute= and then you wait for the result. Then you repeat the process over and over again. Learing is a lifetime process….So I will keep studying because the more you know the better.

  41. Anonymous

    Hi Timothy,

    Thanks for such a nice article! I had one question regarding the challenge. Is it applicable only to trading in the US or can the same principles be applied elsewhere. I am asking as I am not a US citizen.

    Thanks in advance

  42. Ryan

    #3. If you don’t know what you’re working towards you can’t do 1, 2, 4, 5, 6, or 7. Great post. Thanks Tim!

  43. Gigi RN

    Good afternoon Tim. After reading these 7 tips. I would say they are ALL equally vital to my next journey in trading. I have absolutely NO experience in this industry and the #1 point is my solid starting point… because I am constantly studying, srwyinh focused with my why in front of me always. Tim, thanks for being transparent..sooo liking forward to trading in a few weeks/months😁

  44. Dwayne M

    Points 1, 2 and 3 work best for me at this time. I enjoy learning new ideas and methods of success. So naturally a good education of Penny Stocks is on point. #3. One of my goals is to become Debt Free then Financially Free and learn to Live Life!!! Not just exist in life. To Live Life.
    Thank You Tim!

  45. Vinnie

    #7 is truly the zen of it all it is the key to greatness. If you want to be a master at karate, fall in love with being a white belt. Realish going to the dojo, sweeping the floor before and after class. Love each front snap kick and rising block. Love that white belt and all the techniques so much that you resist becoming a yellow belt until you are forced to take the test and move forward. By then your technique will be so precise that the test is a cake walk. Then love being every other belt the same way and one day your technique will be so ferocious that your confidence and success glows on your skin.

  46. Jeff

    Hi Tim,

    The most important ones for me (and probably most people like me) are #1 and #2. We have to seek education to learn what we don’t know. As well as learn what we don’t know, we don’t know. More importantly, we must have a willingness to learn otherwise the education gathered will not do any good.

    I’m a seasoned professional in another field of finance. I’ve attempted to make a lot of money in stock trading but haven’t gotten there yet. I worked in banking as a financial analyst so I though I was pretty smart.

    Until now, I thought that you needed a ton of money to make money quickly on Wall-street. I also thought that day trading was too risky, it was only done with other people’s money and no one would be willing to show you how to do it.

    Tim, you’ve opened my eyes to new a possibility to earn back the millions I lost in the real-estate crash.

  47. Mike

    I have already been through most of your challenge process and definitely want to do this. Tim your an inspiration to many.I am new at stocks and am not sure if I am qualified enough to be one of your students but I would like to be all in.

  48. Cal Grasley

    It is all about our retirement and travelling, trading as we go. We would also like to help our kids out while they continue on with their careers and families.

  49. John

    I just want to know, when the fuck do I get to start with you Tim? Let’s get it started.

  50. William Burch

    Education and setting a goal is most important to me, but all these points must be followed for success!!!

  51. Afroz

    Amazing tips Tim. I believe 1- is the most imp, if you don’t seek out education (building a strong foundation) none of the other tips would follow. The education helps you to learn further to improve your knowledge and understanding, while it then helps you to identify your strengths and weaknesses. If you didn’t educate yourself in the first place how would you know the difference between your strengths and weaknesses? How would you go about setting goals and targets? How would you be able to control your emotions and ego? How would you learn to stay humble? How would you know when to stop, take a break and go back to your basics when everything has gone against you? – we are not immune to anything in life, so never expect the same here. I could go on on here… But I suppose you all get my point. Oh BTW I’m a newbie here and I haven’t event open my trading account yet. But this is me after going through lots and lots of Tim’s blog, videos and social media feeds. So I hope I’m heading in the right direction.

  52. Juliet

    Awesome Tim!
    Great great tips. 2 ,5 and 7 are my best catch. I have just started trading something i yearned to do 6 years ago but i didnt have education, i didn’t have a mentor but I loved and I believed in my imagination year by year until i strated it. The love is what is driving me to seek education, improve myself everyday, be patient and stay in the game no matter what.

  53. Ellayah

    #7 relates to me the most because I think in life everyone should find something they love to do and that doesn’t feel like a “job”. I’m working on getting to the point where I wake up and not dread what the day holds for me, but actually looking forward to it.

  54. Kiabeth

    #3 and #7 Fulfilling your purpose and having beat the rat race….. I’m working on it. Thank you for the tips. Loved this post.

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  56. Tukemba

    #1- it’s very important cause i dove into trading without education, made few hundred bucks, but after few weeks lost a chunk, more than what i had gained as a profit, now i read your posts, penny stock guide to educate myself more and eventually join your MMP.

    #4- maximize on your strength and minimize your weaknesses, but one thing is this can you know your strength or weak point without trying or getting to trade? of course with education not guessing.

  57. John

    Number 1. I’m currently in the learning process. But just in the first two weeks of learning this trading stuff I’m amazed at what I learned and what I would have done if I hadn’t learned what I’ve learned already. I can definitely have seen myself losing a lot of money just jumping in. I still don’t think I’m ready to invest real money but I am definitely think learning as a most important tool.

  58. DNN

    Just out of sheer curiosity Timothy…how long have you ever been on a job for? You seem very knowledgable. I’m just wondering where you were in life before becoming the highly successful millionaire trader. Please do school me. Thanks buddy! 🙂

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