UPDATE: This young trader is now up an additional $730,000 in the past few months, he’s now nearly a millionaire, see his trades since this blog post HERE and learn from what he’s doing right!
My trading challenge is creating a scandal among college attendees since my students are beginning to earn six figures after less than 1-2 years of study while paying a fraction of what the typical university costs…
I LOVE when my teachings really get through to my students…as more and more people are starting with my 7 free video lessons and then taking it to the next level…over a dozen trading challenge students, including several recent college grads like the student below, made $100,000+ in 2012 alone, but I won’t be satisfied until I create a millionaire from scratch.
I’ve written about this one student Tim Grittani HERE and HERE and others are so inspired by his success of turning just a few thousand into $100,000+ in one year they’re writing articles about him HERE.
And that’s why he was one of just two students who I took to the Maldives last year as a bonus for all his hard work studying my DVDs and video lessons day in and day out and really practicing what I preach:
After just graduating college last year, he has now crossed $200,000 in trading profits, you can see his Profitly chart which is just SO beautiful:
His quick profits with my strategy in just half the time it took for him to attend college for 4 years are the start of a scandal since more and more college students are realizing they’re spending too much time and money studying the wrong stuff…since my trading challenge is much cheaper and more useful 🙂
…Tim Girttani has even started teaching others, giving one heck of a first webinar last week to other trading challenge students and the reviews were rave!
A few weeks ago, Tim emailed me a list of 6 tips for new traders which I got too swamped to post, but now which I’ve posted below. And below these tips, he has a new guest blog post with 4 new tips where he details how he made $26,000 in January 2013 compared to just over $4,000 in profits in January 2012.
Ah yes, that’s the beauty of what I teach, some are confused when they see I only make a few thousand dollars profit per trade, but the profit rate increases once you become more comfortable with the patterns and start looking for more trading setups to take advantage of.
Download a PDF version of this post.
Please do read ALL of Tim Grittani’s 10 trading tips below and I look forward to seeing the next trading challenge student to follow in his $200,000+ in profits in less than 2 years footsteps!
One year ago today I closed out what at the time was my biggest winning trade ever, vaulting me from being a losing trader to a profitable one. You see, for the past nine months I had been studying and trading Tim’s strategy, but due to some poor discipline and a couple big losses I’d found myself down roughly $1100, a rather large portion of my trading funds at the time. I spent September and October clawing back up to break even before this trade on AMWI put me back in the green. I haven’t looked back since.
This past year has been incredible, far exceeding any expectations or goals I had for myself. Every month has been a profitable one since last November, in fact I’ve only had three losing weeks in the last year. Check out my profit.ly account, and you’ll see that my winning percentage sits at about 71.5% after more than 800 trades. Given these stats, I think it’s safe to say that my success is not luck, and it certainly has not been a fluke. The performance is just too consistent. No, my success comes from hard work, learning Tim’s strategies, and most importantly, discipline. For those of you that want to learn how to experience this kind of success, here are some tips that I’ve picked up along the way:
1. Don’t Be a Sheep.
This applies not just to trading pump and dumps, but to following Tim’s alerts as well. Just as you shouldn’t buy into a pump because it has a good story, you shouldn’t buy into a stock just because Tim alerts it as one of his trades. Rather, you should focus on Tim’s reasoning behind the trade. Why is this a good opportunity? Why did Tim pick the entry point that he did? Of course, if you watch Tim’s video lessons he makes after each trade or attend his webinars, these answers become much easier to identify as he lays it all out for you. Learn the strategy, learn the reasoning, don’t blindly follow trade alerts or pump emails and buy just because someone told you to. You will not be consistently profitable with this strategy, if profitable at all.
2. Get the Right Brokers.
This one seems so obvious, yet I’m always surprised at how many people seem clueless in this area despite how many times Tim posts it. I personally believe there are four brokers worth using. For buying pumps or OTC stocks, use either Speedtrader (USA). For shorting stocks, the BEST two brokers are Interactive Brokers and Tim’s special high net worth broker (contact Tim HERE for a personal introduction if you have over $30,000). Yes it can still be difficult to short some pumps at these brokers, but your odds are far better than anywhere else. If you want to be prepared when the best trade setups come along, having the right brokers is crucial.
3. Find your Niche
Tim teaches a lot of different strategies, and trying to trade them all at once can be a bit overwhelming, especially when first starting. In my early months as a trader, I experimented with buying pumps, shorting pumps, trading nasdaqs with momentum, and even buying earnings winners. I traded with small size during this time, because I didn’t want to blow up my account, but also I wanted to figure out what strategy I was most comfortable with and what I could profit the most from.
Ultimately, I settled on buying pumps. I was successful with this strategy because I then spent months learning everything I could about this one unique area, how to get early entries, how to best buy breakouts, I watched all of Tim’s video lessons about longing pumps, I even tracked the performance of different promoters on a spreadsheet and saved charts to refer back to later. Almost all of my trades were buying pumps from November until April, and only after buying pumps became a second nature to me and I’d built up some capital did I move on to working on other strategies such as short selling. Perhaps pump and dumps won’t be your niche, but find what is and pour all your energy into it rather than dividing your attention.
4. Cut Losses Fast
If you’re looking for a specific trading tip, this one is the most important by far. No matter what you’re trading, you have to be willing to admit you’re wrong sometimes and take a quick loss. Letting losses spiral out of control is the quickest and easiest way to take yourself out of the game, especially if you like buying pumps. You can’t worry about stupid stuff like snapping a winning streak, or going from being up money on the day to down. In the end, your one and only concern has to be sticking to your rules and protecting your account, because if you’re trading on a small account all it takes is one bad mistake to wipe you out.
5. Get Level 2
I traded my first four months without a level 2 feed, and looking back on that time now I can honestly say that it was like trading blind. While it isn’t quite as helpful with Nasdaqs as it is with OTCs, it still holds quite a bit of value in my opinion. Get it, learn how to read it (Tim has a great DVD), and use it to your advantage.
6. TRADE SMALL EARLY
I know I kind of covered this earlier, but I want to stress it again as I think it’s a very important point. If you’re just starting, don’t rush into things and don’t put a ton of money on the line looking for immediate returns. I studied video lessons for three months before I even placed my first trade with Tim’s strategy, and I still made all kinds of stupid mistakes when I was getting started. You can watch and prepare and even paper trade all you want before jumping in, but never underestimate the experience factor. You aren’t truly ready until you’ve had some time to trade for real and get some practice in. So when you get started, use small size, get the dumb mistakes out of the way, and learn the subtleties that only experience can teach you. Your trading account will thank you for it in the end.
That was from Tim Grittani back at the end of 2012, but here are some new tips from early 2013 as you can see here that he’s made nearly $50,000 so far in just 45 days…more than my $40,000ish and he’s trading with a MUCH smaller account!
This January marked the start of my second year of full time trading, and what an incredible month it was. I came into the year with more money in my accounts ($60,000 compared to $20,000 last year), more experience (over 800 trades in 2012), but most importantly more confidence. After $4311 of net profits in January of 2012 my goal to start the year was simple, show improvement by having a better month. When all was said and done, January 2013 turned out to be my most profitable month ever, as I locked in about $26,000 in profits (I’ve had trouble importing Speedtrader trades to profitly the past few days, as soon as I can again I’ll know an exact number).
Despite my increased experience from last year, I continue to learn new lessons and have important lessons reinforced the more I trade. Here are some of my key takeaways from January, based off of both my successes and failures:
7. Buying pumps early continues to be superior risk/reward:
Getting in quickly on pumps upon announcement continues to be one of my favorite strategies, as well as one of my most profitable ones.
The three trades above are all trades I made on new pump announcements, between the three of them I made about $8,500 and I don’t think I held any of them longer than 15 minutes. One of the most important things to note with trades like this is you MUST be careful not to chase too much. If you don’t get fills, so be it. Chasing for a fill is not worth the risk of buying the top of a spike right as the stock starts to pull back. I’m aware this strategy lost some favor among people after disastrous picks in 2012 like RAYS, VLNX, VKMD, and SLIO. This brings be on to the next lesson:
8. Take profits into spikes!
Yes, it is always tempting to hold onto a pick in case it’s the next 1000% runner. Sometimes, by selling early you feel like an idiot a couple weeks later as you could have made two or three times as much. But the importance of taking a shorter term approach and protecting yourself is huge. While RAYS, VLNX, VKMD, and SLIO were disasters for most traders, I profited on every single one of those trades, making over $10,000 between the four. I did not suffer an account blowup like so many, I did not find myself down 30%+ wondering what had gone wrong, I locked in my profits into spiking and I protected myself! While my January BDLF trade wasn’t necessarily one people would have been tempted to swing, I sold into spiking when the stock was still strong. I didn’t wait for it to turn around on me, because selling into weakness on these OTC’s makes it very tough to get a timely execution. I will gladly sell out of these picks early and leave potential profits on the table if it means protecting myself from disaster.
9. Breakouts remain a great risk/reward setup
FARE gave us a fantastic opportunity early in the month, as it had a big breakout past the $.20 area and went on a nice multiday run, spiking over 50%. We saw the same thing out of ECAU later this month, which had a monstrous run from $1 all the way up to $3.61. While I personally took more of a scalper approach with these by buying dips and selling into pops throughout the run, breakouts also offer the opportunity for a nice swing play (as long as you’re willing to cut losses fast if the breakdown fails). Breakouts were one of the first setups I made sure to learn when I first started trading, and this month reminded me why with these two great runners.
10. Don’t trade off of emotions!
Every now and then, I need a trade to smack me around to remind me of this. Capstone had just gone out of business, and the replacement broker I had chosen couldn’t accept Illinois residents for the time being because they weren’t properly registered with the state. After a week of not being able to short sell (and missing some great opportunities). My eagerness to trade outweighed my willingness to truly evaluate the situation, and I started into my short position WAY too soon and having to do damage control rather than exploiting a great opportunity (I was down $1500 at one point on this trade). Had I been patient and traded with my head, I could have made a killing on this short. Instead, I traded with my heart, letting my emotions and desire to make something happen take over. This happens to everyone at one point or another, but it is imperative that you learn to control your emotions if you’re going to be a successful trader.
January was a great month, and February has already started off with more of the same as I booked almost $6000 in profits on Friday (Already surpassing my total February 2012 profits). As usual, I must take this opportunity to thank Tim Sykes and Michael Goode for their guidance, I would be NOWHERE close to the trader I am today if it hadn’t been for their guidance!
As you can guess, this is the EXACT kind of trading challenge student success that truly motivates me to teach more people who want to be millionaires…Grittani is well on his way and might very well be the first millionaire I create…as I proudly declared in this interview, I WILL NOT FAIL AT CREATING A MILLIONAIRE FROM SCRATCH…