I received an email from one of my trading challenge students last week telling me what an awesome trading day he’d had. As I outlined in this video:
…he earned $7,000 in one day**, using the skills he learned from my trading challenge. But he didn’t stop there. Bob Knight, also known around here as “TurboBob”, took the videos and other training materials and adapted it to what works for him.
Want to learn from my student? Then follow these 7 tips.
It’s important for my readers to know that with enough hard work, study and dedication, it is possible to take my video lessons, webinars, DVDs and blog posts and transform it into a trading system that works with your own schedule and risk preferences.
I asked this dedicated trading challenge student, Bob, to share his tips for earning $7,000 in one day, and he was gracious enough to oblige.
Here are Bob’s 7 tips for making $7,000 in one day, as he laid them out:
7 tips for $7k
- Understand the patterns and identify them correctly. Make sure the pattern you see is actually a pattern instead of just a random trade. This is not a skill you can achieve overnight. It requires hours of studying Tim’s DVDs.
- Keep it simple. My bread and butter are break-outs/break-downs, so I use support and resistance levels to indicate the entry and exit level. I also use the 5 EMA and 15 EMA as guides to show the direction or momentum of the stock. [For anyone who might now know, the EMA is the Exponential Moving Average, which is a popular forex trading tool. The 5-minute and 15-minute guides are those that typically use shorter-term EMA charts.]
- Work hard. I am on the West Coast, so start my day at 5:30 a.m. and don’t stop until I go to yoga or out to ride my bike at 4 p.m. Then I usually spend one hour each night preparing my watch list for the next day.
- Exercise. I try to exercise at least five times a week, but generally I am doing something every day. This may include yoga, spin class, riding, cross country skiing, downhill skiing, and hiking. You need to have some balance, and exercise is a great way to clear your mind.
- Keep trade charts small. I try to keep my charts to a minimum. I found that I was missing trades by watching too many. What I have found very effective lately, for me, is to have a detailed watch list that has levels and parameters to trade stocks. My last three watch lists the last three days have generated six big winners (stocks moving more than $.80 share in my parameters). As a subsection to this, I also find it imperative to set alerts on the stocks I am watching, usually $.10 – $.15 below my entry level. This way, if they come close to the break-out level, I have plenty of time to watch and ensure the entry level is good. Here is a sample of the detail I write. This one I did last week and has what I wrote about $LXU. I do share it on profit.ly, but I mainly do this for myself. https://profit.ly/user/Turbobob/watchlist/stocks-to-watch-31816
- Patience, discipline, and checks and balances. Let the trade come to you or don’t trade. This is very hard to do. Chasing is a big problem for me, and I lose on over 60% of chase trades. To mitigate this, I have a trading partner on Skype, and we are always running ideas by each other. This helps to keep my trigger finger in check on trades. It is always good to have a second voice to pick levels or point out things that you may have missed.
- Take profits along the way. My general rule of selling is: some at the bottom, some at the top, and all of the rest in between. Even though a stock may have broken out and I am looking for a big move, I will sell some (generally randomly) after the stock has moved 50% – 75% of what I think is possible. I will then scale out some more at 75% – 90% of my target, and invariably the balance back at 50% – 75% of my target. I do this because it is very difficult to hit the top, and they seem to correct much quicker and further than I think they will.
That’s great advice, TurboBob, and proof that hard work does indeed pay off. But beyond this, it’s a success story based on how you can take what I teach you and really OWN IT.
Can You Spare 7 Minutes?
Bob also took the time to create a 7-minute video explaining how he set up his $7,000 trade of $LXU. In the video, TurboBob explains his reasoning and the logic behind buying $LXU on the break-out (his specialty), not just once, but TWICE in one day. Yes, twice—an important factor that should have you sitting up and taking notice.
If you want to learn more about Bob’s break-out strategies, this is a great video lesson that you shouldn’t miss:
So, to Bob, congrats on the great day man, you’re doing what everyone else dreams of!
One common theme you will no doubt see throughout the many student testimonials is that they all spent time studying my DVDs. They weren’t afraid of the hard work. They didn’t make excuses about being too busy (are you too busy to make $1 million?).
There is no get-rich-quick formula for trading penny stocks, and if anyone is selling that idea, you shouldn’t be buying. And let’s be honest, statistics show that most day traders lose money. They lose money because they don’t have the skills and tools they need to trade successfully, unlike many of my students.
If you want to learn more from some of my successful students, including my first two millionaire Trading Challenge students**, check out the links below:
For now, take a page out of TurboBob’s playbook.