timothy sykes logo

Penny Stocks News

23 Lessons For 2023

Timothy SykesAvatar
Written by Timothy Sykes
Updated 1/3/2023 13 min read

This is YOUR YEAR!

Don’t worry about any losses you had.

Leave them all in 2022.

Right now is your chance to CHANGE EVERYTHING.

And I want to help you take your trading to the next level.

I take pride in the fact that I can teach ANYONE how to trade.

© Millionaire Media, LLC

Folks join my Millionaire Challenge from every sort of background imaginable…

….from Tim Gritanni was a 20-something Midwestern insurance agent who’s made OVER $13.5 MILLION in trading profits….

….to former NFL Star Ellis Hobbs III, who joined my Millionaire Challenge and has netted over $460,000.

Now, I know the proof is in the pudding…

Which is why I put together 23 lessons for 2023.

These are the creme de la creme of trading tips that have had the most impact on my students.

1. Dream Big. Study Hard. Get Better Every Day

I have 30+ students that took my Millionaire Challenge and earned at least $1 Million.

Mariana’s story is one of my favorites.

She didn’t place a single real-money trade the first year. All she did was study.

Mariana had a goal, determination, and a plan to get there.

Trading isn’t an easy career choice. It requires hard work.

However, anyone can get there if they put in the time and effort.

2. It’s a Marathon, NOT a Sprint

Some of my students find success in a couple of years.

Others take a decade before catching their stride.

I know everyone wants to be a millionaire tomorrow.

But that’s not how it works.

You need to put in the time and effort, mix in some patience, and only then will you succeed.

No joke, I literally named one of the new learning center’s in Bali after this concept.

© Millionaire Media, LLC

3. Adjust to the Current Market Environment

Some markets are for earning and some are for learning.

The start of 2021 was an amazing time to be a trader.

Penny stocks made multi-day/week runs left and right.

2022 was MUCH slower.

Markets go through cycles.

Know where you’re at and adjust accordingly.

Take risks where appropriate and back off when the odds are stacked against you.

4. Singles, Singles, Singles.

Small wins add up over time.

I made $132,000 in 2022. Not my best year by any stretch.

My average win was a little more than $600, with an average loss of $430.

But with 423 trades over the year, these tiny trades stacked together to make a healthy profit.

Even a bunch of $50 wins can add up to several thousand by the end of a year.

And for most traders, that’s a great place to start.

5. No Random Patterns

trading patterns types
© Millionaire Media, LLC

My 7-Step Penny Stock Framework has stood the test of time.

It’s worked year after year.

I use it, teach it, and trade it.

There are other patterns out there.

But I stick with the one I know.

Don’t put your money at risk until you know what you’re working with.

You won’t execute the trade well if you don’t trust the pattern.

6. Maximize the 2023 Market, Whatever it Brings

I traded through bull and bear markets, bubbles and busts.

2023 could be the start of a bull run.

But for now, it’s a bear.

I trade the market in front of me, not the one I hope for.

If you don’t see great setups, don’t force them.

Sometimes they’ll be slow to form, and you may see one a week. Other times, you’ll have to choose from several a day.

Work with what the market gives you.

7. Don’t Let Negativity or Doubters Get You Down

Emotions are a big part of trading.

You can’t help but feel anger and doubt alongside joy and confidence.

You’ll find plenty of Twitter jockeys telling you why the trade is wrong or friends who don’t support you.

Even your internal monologue will work against you from time to time.

This happens to everyone.

We all have internal doubts and people that don’t support us.

It’s the nature of the beast…and thankfully, it’s temporary.

8. Get Inspired by my Most Successful Students’ Journeys

millionaire students
© Millionaire Media, LLC

Check out these success stories for folks just like you that have become successful traders after joining my Millionaire Challenge:

And a host of others here and on my blog.

9. Take Breaks to Avoid Burn Out, But Don’t Give Up

It’s easy to get into trading.

I mean, REALLY into trading.

Especially when there are thousands of hours of videos and articles to read.

And there are times when you just get frustrated and need a break.

Not only should you step away from the screens, I want you to take a step back.

You can’t lose sight of why we trade.

Trading is fun. But it’s a means to live our lives on our terms.

I used trading to start a charity that builds schools in impoverished parts of the world.

That’s what keeps us going.

Don’t lose sight of it.

10. Commit to Studying the Past

I like to tell my students that I’m a history teacher.

Everything I teach about promoters, my 7-Step Framework, and all the other concepts come from experience.

History repeats itself over and over.

Bubbles expand and burst.

Economies thrive and crash.

If you want to learn about the future, study the past.

11. Boring Daily Habits Matter

Tim Sykes checking his top penny stocks list in Italy
© Millionaire Media, LLC

My trading style isn’t exciting.

But it’s consistent.

I win roughly 75% of my trades and make money overall.

I couldn’t achieve those results without my routines.

Every day, every trade, I practice patience for the setup to come to me and impatience for trades that don’t work.

I start every morning with Breaking News and an update to my watchlist.

When you make trading mechanical, you make it consistent.

12. Size Matters – Don’t Take Dumb Risks

Most traders don’t blow up their accounts over time. They do it in one or two trades.

Avoid these outsized losses.

Focus on sizing your position correctly. Don’t go for home runs every time.

13. Be Wary of Groups That Trade Together

Chat rooms are a great place to learn and collaborate.

But don’t confuse that with folks that trade together.

It creates conditions just like promoters, getting everyone moving in one direction before the rug gets pulled.

Group think creates bubbles. And if you’re the last one in, you’ll be left holding the bag.

14. Don’t Trade Alerts From Anyone

Trade alerts are meant to help you follow along. Don’t use them to take trades.

I can tell you from experience that anyone who tries to trade another person’s trade alerts, no matter how good, won’t develop sustainable profits.

Little differences from the position size to the execution time create differences that add up.

Instead, use the trade alerts to see how someone thinks and whether it matches what you expected.

15. Learn From Transparent Traders, Not Screenshot Heroes

© Millionaire Media, LLC

Every single one of my trades is posted on Profitly.

Most folks on Twitter only post their winners.

No one is that good.

If someone says they are, they need to prove it.

I don’t claim to be the best trader in the world. But I am a good trader and a great mentor.

16. Use Tools Like StocksToTrade Breaking News to Get Ahead

There was a time when I used to have Gmail set up to receive alerts quickly.

Plus, I followed dozens of Twitter accounts.

Now, there are great tools like our StocksToTrade Breaking News that do the heavy lifting for me.

I don’t have to spend hours scouring the internet.

All the major stock-moving headlines are right there for me to see.

17. Find a Process That Works For You and Keep Refining

All it takes is one pattern and one setup to become a profitable trader.

Get really good at just one of these. Understand it inside and out.

Only then do you move on and add another setup.

18. Expect the Worst, and You’ll Never Be Disappointed

I like penny stocks because I know they’ll all eventually fail.

That’s why my 7-Step Framework works so well.

Large-cap companies can go years before they drop a bombshell.

I prefer to know and expect manipulation.

That way, I can design a strategy that works with promoters, not against them.

19. Respect History & Recessions

Tim Sykes tosses his book An American Hedge Fund in the Alps
© Millionaire Media, LLC

The most dangerous words a trader can ever utter…

This time will be different.

When the pandemic hit in 2020 and stocks crashed, penny stocks weren’t spared one bit.

Realize that while they normally march to their own beat, they don’t always.

History tells us what to expect when crashes and melt-ups happen.

Study and learn from them.

20. Be Open to New Strategies That Could Work

Most traders that take my Millionaire Challenge already have their heads filled with ideas and concepts they learned elsewhere.

It makes it that much harder to accept what I teach.

I’m not saying what you know is wrong.

But if you haven’t found a way to consistently profit, you need to open yourself up to new strategies.

21. Trade Small or Paper Trade to Build Confidence

Everyone thinks they need to go full bore right out of the gate.

In fact, you can spend little to no money on each trade as you learn a strategy.

I actually encourage students to do this.

Building up confidence takes time and patience, especially when you have years of struggle to overcome.

22. It’s Always Toughest to Start Learning and Isn’t Always Fun

Hard work and study aren’t always fun, but they’re necessary.

If you put in the time and effort, you will see results.

But be realistic. It won’t always be easy or enjoyable at first.

That’s why you have to stick with it to get to the good stuff.

23. 90% of Traders Lose Due to a Lack of Preparation

Doctors study for years before they become residents and then several more years before they become doctors.

When they finally take a patient, they do a lot of legwork before making a diagnosis.

Preparation means having a plan before the market opens.

It means practicing those boring habits so that your decisions are automatic when a trade comes around.

Executing a trade is the last step in the process, never the first.

Create a plan, study the patterns, and practice execution.

That’s how you develop profitable and sustainable trading.



How much has this post helped you?

Leave a reply

Author card Timothy Sykes picture

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. Read More

* 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”