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Millionaire Trader Exposes The 7 Biggest Mistakes Newbies Make 📈

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Written by Timothy Sykes
Updated 11/8/2023 7 min read

In the relentless pursuit of profit, traders often find themselves in a costly loop of mistakes…

It’s a brutal classroom where the tuition fee comes out of your pocket.

Many dive in headfirst, guided by excitement and the allure of quick gains…only to confront a tide of harsh realities.

One person who knows this all too well is Glenn Peters.

Not only is he the director or operations for my mentoring program, but he’s gone down the gauntlet as a trader, racking up over $1.6 million in trading profits.

When it comes to mistakes…he sees newbies making these 7 big ones.

Find out what they are, and how to overcome them.

Newbie Mistake #1: The Dunning-Kruger Effect In Trading: Don’t Know What You Don’t Know

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One of the biggest mistakes in trading is overconfidence. New traders often enter the market with a burst of enthusiasm, mistaking beginner’s luck for skill.

This cognitive bias is a treacherous cliff on the trading landscape where what you don’t know can, and most likely will, hurt you.

How to overcome this: Commit to studying and learning. The market is constantly changing, with some trends coming and going.

Newbie Mistake #2: Premature Trading: Rushing In Too Soon

The allure of quick profits can tempt new traders to dive into markets without due preparation, like a boxer entering the ring without knowing how to punch.

There’s a lot to learn…

Like trading setups, market psychology, risk management, catalysts, etc. It takes time to develop these skills.

Most of my millionaire students, including Glenn, didn’t find success overnight.

How to overcome this: Trade small or consider paper trading. Don’t rush. The market isn’t a sprint…it’s a marathon.

Newbie Mistake #3: Flying Blind: No System In Place

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Trading without a system is like sailing without a compass. You might catch a good wind, but you’re more likely to get lost at sea.

You don’t have to master every setup to become a successful trader. You can do very well with just a few. However, it takes time to figure out what those will be.

Once you do figure that out, you then must focus solely on those specific setups.

How to overcome this: Develop or learn a trading system with clear rules for entry, exit, and money management. Stick to it religiously.

Newbie Mistake #4: Tool-Less Trading: No Tools

Trading without tools is akin to going fishing with your bare hands. You might catch something, but you’ll be far outperformed by someone with a rod.

Top traders like Glenn are using StocksToTrade Breaking News to find catalysts, as well as scans and alerts from the StocksToTrade Platform.

How to overcome this: Good tools level the playing field between you and Wall Street. If you’d like to learn more about a special tool that I’m developing utilizing the power of AI, check this time sensitive announcement. 

Newbie Mistake #5: Playing With Fire: No Risk Management

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If the name of the game early on is survival. Then you must cut losses quickly.

Ignoring risk management is the equivalent of staking your entire fortune on a game of roulette. It’s reckless.

How to overcome this: Put risk management ahead of profits in terms of priority. Don’t put all your eggs in one basket. Every trade should have a clear risk-reward ratio.

Newbie Mistake #6: The Gambler’s Dilemma: You’re Basically Gambling

If you’re trading based on gut feelings or hot tips without analysis, you’re gambling, not trading. So many newbies are eager to make money they just jump in from one symbol to the next.

How to overcome this: Discover what works and discipline yourself to stick to those setups. If you don’t know what works then study. Don’t gamble.

Newbie Mistake #7: Mistakes in the Mirror: No Idea What They’re Doing Wrong

Glenn is a big believer of studying the past, including your old trades. Even if you lose, there is knowledge to be gained. Most newbies don’t reflect on their trades, which means they repeat the same mistakes.

How to overcome this: Start journaling and taking notes on your trades. If you’d like to see Glenn’s trades on Profit.ly you can find them here. 

Eager to Master the Market Instead of Falling Prey to It? 📈

© Millionaire Media, LLC

Facing the market without insight is like setting sail in a storm — risky and ill-advised. The market is an unforgiving teacher, and your trading account shouldn’t be the cost of learning.

🔥 Avoid the blunders that leave newbies bruised and accounts drained.

🔥 Learn the telltale signs that spell doom for the uninformed trader.

🔥 Unveil the discipline that separates gamblers from gurus in the trading arena.

From the crucial Dunning-Kruger Effect to the perils of tool-less trading, I’m going to expose the pitfalls that snare rookie traders and how to sidestep them with ease.

🚀 Join Glenn Peters and the rest of my team for a transformative live training.

🚀 Get first-hand the practices and tools that turned Glenn into a millionaire trader.

Are you done with mistakes eating into your potential profits?

Ready to turn the tables and make informed, strategic trades? Take control and dictate your trades with confidence.

Your Blueprint to Trading Success Awaits. Learn from the Fails of Others to Secure Your Wins.


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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”