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3 Things Jack Kellogg Recommends To Beginning Traders

Timothy SykesAvatar
Written by Timothy Sykes
Updated 6/12/2023 6 min read

What’s your end goal when it comes to trading?

It’s a question I ask my students when they look to join my trading challenge.  

Whatever the reason may be, all of my students understand that success isn’t going to be handed to them on a silver platter…

And it’s going to require them to learn a process…

The same process has helped me return over 630% in 3 years, which I teach to all of my students, and over 30+ of them become millionaires.

Trading shouldn’t be treated like a game of luck, take it from one of my greatest students, Jack Kellogg.

In my latest conversation with Jack, he told me that every beginning trader needs to have these three things to help them throughout their trading journey…

Here’s what he had to say.

Stay Motivated

All of my 30+ millionaire students have one thing in common…

No, it’s not money…

It’s motivation.  

None of my students became successful from pure luck, and they didn’t start with a large trading account…

They all started with a small trading account and failure wasn’t an option, which set them apart from the rest.

Jack Kellogg, who is one of my most successful students, saved every penny from his valet job…

Starting with only $10,000, he wanted to create a life where he had the freedom to do whatever he wanted.

Jack knew that this was only a small part of his journey, and he knew that if was to dedicate a few years of his life to understanding the process…

The opportunities could be endless.

Early on in Jack’s career, he would spend every chance he could learn about the market.

Every day when he was working at his valet job, he would put in his earbud and listen to some of my video lessons to help him better understand my thought process surrounding my every trade…

Or he would study charts and read additional material at night instead of watching Netflix.

Most traders who fail are typically the ones who aren’t willing to put forth the time and effort to understand the basics…

And most believe you need money in order to make money…

But that’s not true.

Jack knew that even though he was starting with a small account he had to learn the process…

And if he were to profit over time, his earnings would be exponential.

Growing Your Account

I remind all of my students not to get fixated on the dollar amount…

But rather the percentage gained or lost on their trades.

Jack understood that there is exponential growth when it comes to trading.

When you start small, you’re dollar gained is going to be less compared to those who have a larger trading account…

But your percentage gain may be better.

Jack knew that if he was to make 5% on $10,000, it would only be $500…

And if he applied that same 5% to a trading account that has $100,000, it would be $5,000.

He’s not increasing his risk, he’s not trying anything new…

Jack realized that if he was to apply the same basic strategies he learned early on in his career, it would yield the same percentage gained as his account grew.

If I was to give any new trader $100,000 to trade with, most of them would fail.

They wouldn’t understand my trading process, they wouldn’t know anything about risk management.

Trading with a small account gives you the ability to learn the process, without risking a lot of money.

Over time, trading with a small account will help you recognize these key patterns that I look for every day…

More Breaking News

And if you’re bank account starts to grow over time, you’ll see those same percentages gained per trade yield a lot more over time.

Start Small

I’m not telling you that you need to study as much as Jack to be successful, you can push yourself as much as you want.

Everyone has a different timeline on their journey; some people can devote more time than others given their situation, and that’s perfectly fine!

It doesn’t matter if you’re a part-time trader or full-time trader, the strategy stays the same…

But how much you want to study, is entirely up to you.

Early on in your career, I recommend you stick to a strategy that you’re comfortable with…

Don’t try to remember multiple strategies all at once…

It’s easier for new traders to perfect one strategy at a time.

One of my favorite strategies is the dip buying strategy, but I’m not just buying any stock that falls, you need to know what to look for.

Let’s take a look at how this strategy helped me trade MGO Global, Inc. (NASDAQ: MGOL)

I was able to spot this recent runner based on a recent news play.

Here’s the chart.

Source: StocksToTrade

The thing with penny stocks is when they spike, it could potentially set you up for additional opportunities.

And at that point, I’m just waiting for them to panic.

I’m not just randomly buying them once they drop in price, I’m looking at key areas where the stock can bounce. 

I even mentioned that to my students as I traded it.

Source: StocksToTrade

I entered the trade at $2.17 and exited at $2.64 for a 21.66% profit. (Risked $10,850).

My dip-buying strategy isn’t something you need to focus on, pick a strategy that you’re most comfortable with.

After all, many of my students changed their approach later on in their careers once they learned the basics…

But you need to make sure you know the process, just like Jack.

-Tim


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Comments (1)
BerehaneJun. 13, 2023 at 4:07 pm

Great lesson!! Thanks Tim!!


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.
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* 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”

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