My Favorite Brokers And My Plan For You
Yesterday I posted the 7 top stocks I’m watching this week here, but more important than hot stocks is having the right mindset, strategy and tools. So, for 2018 these are my goals for you. Please ONLY apply here if you’re 100% dedicated and use this software daily (and be sure to use it properly, see a good overview of the features here)
Let’s make 2018 the best year ever, dream big and study hard!
Hey, Tim Sykes Millionaire Mentor and trader here with your plan for 2018. You need to have a plan. You need to be meticulous, if you want to be successful. This was me in Laos a few weeks ago at one of the schools that my charity has built. I have this huge, huge charity now that I’m planning to grow even more. I actually have a very exciting announcement, a seven-figure donation announcement, my first seven-figure donation ever. And, it took a while to plan, okay? I don’t just donate to any charity. I don’t just, you know, do anything without meticulously planning. And, that is the secret to my success. Just preparation, you know? 2016 was a good year and I made a little over 200% on my small E-Trade account. I will have another E-Trade account with them this year, too, and I’m gonna be growing that. I’m actually starting with just $5,000 in 2017. I’m going to get to my whole 2018 plan and tools for you in a second.
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But, let me just first review why I’m a little different than most. These are all of my trades, okay? I don’t think you understand. I post all of my trades, including my losses. I’ve now made $4.25 million. And, you know, some years, I trade with a small account, so theoretically, it could be more. But, I don’t care. Having a few million dollars is really all you need in life. And, while most people are so interested in trying to manage tens of millions and hundreds of millions and billions of dollars, what I found is that I actually enjoy teaching, especially people with just small accounts, to grow their account, taking a few thousand and turning it into a few hundred thousand or a few million.
Here is my top student, Tim Grittani. He’s at $3.38 million now. He started with $1,500, five years ago. You might have heard of him on this CNN article a few years ago that went viral when he first took his $1,500 and turned it into $1 million in three years. Now, he’s closing in on $4 million. That is the beauty of penny stocks. That’s the beauty of keeping at it and sticking with it. He trades every single day. And, if he doesn’t trade, if there’s no great trade, guess what? He’s studying every single day. 2016 was also a great year for me, in terms of just teaching. Here was me with two of my students on “The Steve Harvey Show.” This thing went viral, thank you to Steve Harvey and thank you to everybody who watched. This was a great honor. My parents were in the audience, also. This was my dad and yesterday I was at the Dolphins game. I don’t know if you guys realize this, but my dad and mom both work for me. We’re a family business. And, this is interesting, to say the least. But, I’m glad that I get to treat them. This was front row at the Patriots-Dolphins game and he’s a Patriots fan. So, it was just great spending time with him.
And, I want you to have the right priorities. Spend time with your family, okay? Study hard, work hard, that’s cool. But also, don’t forget about your friends and your family. And, I have to remind myself that sometimes. I’m a little bit of a crazy workaholic. But, that is how you get to $4.25 million. Same thing with Tim Grittani. So also, those of you in my, really look at Tim Grittani’s old archive webinars. You have four dozen of his webinars archived, if you’re in my . You have access to him. Please, please watch it, study from the past.
My first millionaire student, Michael Goode, also giveswebinars. He’s closing in on $2 million. Mark Croock also gives exclusive webinars and now video lessons, too and he mentors students. He was my student of the year, 2016. Over $600,000 in profits. Also, got to give props to Dux. Steven Dux. He’s a new student who started with just $10,000…no, he started with $27,000, ten months ago, my bad. I’m getting the numbers mixed up. I’m not that great at math, so you have to forgive me. But, ten months ago, he had $27,000; now he’s at $637,000. You can see his profit charts showing every single trade, losses and gains, too.
Just got to give props to a few more students. I have so many. Alex is up to $185,000 in profits. Jane is up to $174,000 in profits and she’s about to give birth, so we’re looking forward to that. Eric Russell, he could have been student of the year, too. He started with just $5,000 last year. He’s now made $112,000 showing every single trade, winning roughly 71% of the time. That seems to be the magic number. Me, Michael Goode, Mark Croock, Tim Grittani; we all win roughly 65, 70, 75% of the time.
But, it’s also not just about six figure students. I need you to understand that. I highlight my millionaire students and my six figure students, too. But, even if you’re trading with a small account…here’s Ed Vogey [SP], and his 2016 profits were $5,300. And, I’m giving him props because he wrote this blog post of 2015 versus 2016. In 2015, he only made $45. And now, he kept studying. He’s now made $5,300. And, he’s on the right path; he has the knowledge, more than just the money. So, understand that penny stocks will do this, but they take time. You have to wait for the right supernovas.
And speaking of supernovas, I’ve got to give props to this guy, Sid. Look at this. Forget about…if you don’t even have time to be dedicated, you don’t want to be a Challenge student, that’s fine. But, just understand that there are some penny stocks that go supernova. And this was a few months ago, but I had to highlight it. Sid bought PRGN, which was one of the best supernovas of the year at $0.62, sold it at $3.32. He turned $434 into $2,300 overnight and I have dozens of examples, I’m not going to get into all of them. But I need you to see that this is possible with penny stocks, and it’s laughable that there’s so much hate towards penny stocks. Granted, PRGN eventually dropped. So if you just try and buy these stocks and hold onto them, and fall for their hype…if you invest in them, like a lotto ticket, then yes, you probably will lose. But if you learn the right rules, it is very, very difficult not to eventually catch one of these. Maybe not catch it from $0.62 to $3.32, you know? If I had bought this…literally thousands of my students were buying this this day at $0.60, $0.70, $0.80, $0.90, and selling it at $1, $1.20, $1.50. It’s so tough not to just take a little bit of the move, whether it’s 20, 30, 40%. But you can grow your account gradually.
And my last student that I just need to highlight, HudsonTrades. He actually learned with me live, in person. I teach in person, too. And, he has not had a down day since leaving Tim Sykes’ Inner Circle. That’s what I call teaching in person. We had, I think, nine or ten people and I taught them for two straight days live trading. They made money. But, more importantly, they learned the lessons. And now, HudsonTrades…again, only profits of $12,000. But, you start somewhere. And more importantly, he has not had a red day since. And look at his overall winning percentage, 46%. So learning and studying has changed him from a 40% winning percentage to now 100%. One hundred percent is not sustainable. But at least you can see the improvement.
So now, let us get to 2017. You need to understand the background. Some people are like, “Oh, Tim, just go over the strategy, don’t care about the background.” It’s all intertwined for me, okay? I’m trading, I’m teaching. I’m focused on you, the students. I’m not a hedge fund manager. Some people get confused, they’re like, “Tim, just manage my money.” I don’t manage money for anybody else. I teach. And so, my performance numbers, when I’m trading, that’s cool; I’m multitasking. I’m trading and teaching. But my students’ performance is much more important. That is my main business. And it’s kind of funny that some people don’t get that. Some people are like, “You’re either a trader or a teacher, you can’t do both.” What is this, you know? Of course you can multitask, that’s ridiculous. And I’m actually a better teacher than I am trader.
Anyways, 2018 recommended educational tools and brokers. Please only apply for myif you are truly dedicated and you want to be mentored by me and several of my millionaire students. It’s okay if you can’t afford to be dedicated. If you’re like, “Oh, Tim, I really just want hot stock picks.” That’s fine. Just don’t waste our time, okay? I need to be very clear about this, this is why I put it in bold. If you truly want to change your life, if you truly want to grow your account with no red days…and again, that’s not sustainable, but improve your winning percentage. If you want to have…I don’t know, your own charity like in Laos, or if you want to have cars like this; I got my brand-new Lamborghini Huracán just a few weeks ago and this is my Ferrari. If you want to treat your parents to sports games, or treat your parents to, really anything, which I think that you should. We should really cherish our parents and our family much more, then that’s when you apply for my . But not everybody can be committed, and not everybody is accepted, and that’s okay.
Over the years since I began teaching, I’ve gotten a little more open-minded. I now have students in over 80 countries, so I understand. Not everybody can be committed. That’s okay, you can still learn. There’s room for part-time traders. There’s room for part-time students. There’s room for full-time.
Also, please use StocksToTrade. Stockstotrade.com is what I use for charts, news, scanning and paper trading practice accounts are coming January 15th. So, when I make this video, it’s roughly two weeks. So please, go to stockstotrade.com and you can see this, I’m on slow WiFi right now. But this is what StocksToTrade looks like. This is the page. And you go to StocksToTrade, get the software. This is my student, Tim Bowen. He’s a part-time trader, and here’s a good example, right? Part-time trader, and he’s been making roughly $50,000 per year. But please use this. I will only be teaching on StocksToTrade in 2017, even if I have slow WiFi. In the past, I’ve used other platforms, but frankly, no one has as many features as StocksToTrade.
When paper trading coming in a few weeks, it’s really going to be amazing, There are some paper trading softwares out there, but they’re like 15 or 20 minutes delayed, or they’re from brokers that want you to trade. We’re not a broker; StocksToTrade is not a broker, let me be very clear about that. We don’t want you to trade. In fact, most brokers hate me because I say “Trade less.” Focus on studying more. So my interests are aligned with you. Brokers are not necessarily aligned with you because they just want commissions. I want millionaire students. I don’t give a damn how much you spend in commissions, and I think that you should actually be trading less.
Quality over quantity in 2018. That is going to be my motto. But 2016 was a pretty good year, you know? I still made roughly $150,000, even when I was trading with a small account. And I’ll post my income tax returns soon when I file them. I show everything, okay? I don’t just show my trades, I also show my income tax returns.
Anyways, 2017 brokers, I will have $800,000 at Interactive Brokers. The wires have already gone out, I will have rebalanced it. I was going to do $1 million, but I actually wanted to split this a little bit. $200,000 is going to my high net worth broker, and I don’t say their name because, frankly, I’m afraid of giving them too many clients. You need at least $30,000 also, so it’s not right for everybody. But in the past, I’ve referred people to brokers, and those small brokers have been overwhelmed by my students. Some of you guys are very high-maintenance and you’ve overwhelmed the brokers, and that’s my bad, so I’ve learned.is a $15 billion, $20 billion company; they can handle anybody.
But my high net worth broker, you need to have $30,000+, and you need to email email@example.com for an intro. I think, actually, their normal minimum is $50,000. But if you get an intro from me, then their minimum is $30,000. And the reason why I have $200,000 with them is they have better borrows on some of these stocks if I want to short them. Primarily, I’m a short seller, but actually in 2016, I was primarily a long-based trader because it was just easier. Short selling was a very tough year. I know a lot of big short sellers, they might have came out with profits, but very stressful, having health issues. I don’t want that. So I’ll look to short, I’ll look to go long. I’ll take it one trade at a time. But by having $800,000 atand $200,000 with my high net worth broker, you’ll see how my $1 million account does over the course of the year. And I have no idea how it’ll do; I take it one trade at a time, I have no goals. Only newbies set goals, like, “Oh, it’s my goal to turn $1 million into $1.5 million this year.” I don’t know what is going to come up. I have no idea what the trades are going to be. So learn not to set goals and to take it one trade at a time. I know that’s counterintuitive. But this is the beauty of learning from a veteran trader and not a newbie.
If you learn from some of these newbies who have only been trading a year, two years, three years, four years, five years, just during this bull market, they will teach you very dangerous stuff. And you might not realize it until it’s too late. You’ll realize the value of learning from an actual veteran multimillionaire who shows all of his trades.
Also watch out for people who don’t share all their trades publicly. A lot of people are claiming “Oh, I made this much. I made this much.” Show me every trade. Don’t just show me one screenshot that you could have freaking photoshopped, okay? Show me every single trade. I want to see how much you risked. I want to see what percent gain. What percent of your trades are losses. I don’t trust anybody who does not show every single trade publicly. And I’m sorry, there’s a lot of people who don’t believe in transparency. It’s nothing personal, but I just don’t believe in non-transparency. I think the future of this industry is showing every single trade publicly. No different than baseball, which is America’s favorite sport.
And guess what? Batters show their bats, at-bats, their stats. Can you imagine going to a baseball game, looking up at the scoreboard, looking for a batter’s batting average and seeing a blank screen, and saying, “This batter has chosen not to show his batting average.” Like, what kind of game would that be? There would be laughs. There would be boos. That player would be booed out of the stadium. And it’s no different with traders who don’t show every single trade. They should be booed out of the industry. And I think that transparency is the future. I could be wrong. I know that there’s a lot of shady, shady, questionable traders who post one or two screenshots, “Here, look how I good I am.” But they don’t show their losses. And you know a lot of them are short sellers, because when these stocks go supernova, they say, “What a junk company. No one should ever buy this.” And then the stock surges 50, 100, 200%, and they’re very quiet. And then, they don’t talk about it. Guess what? They’re probably losing.
So get in the habit of showing everything. I’m very proud of my $1 million account. I will be showing live trading videos with my $1 million account. Let me be very clear. I have three accounts. I’m also starting a $5,000 account with E-Trade. Every single trade on E-Trade will be alerted in real time, and I’ll have commentary in my chatroom just like I always do, so that you can learn, you can see exactly what position size I’m taking, and what percentage of my portfolio and my goals, and my risk levels, and all that good stuff.
But with the $1 million account, nothing will be alerted. You will only be able to see the live video from start to finish after the trade is over. So nothing will interfere with my concentration. It’s fine when I’m trading with a few thousand dollars to try and multitask. But when I’m trading with big money, like $1 million, I want to focus. And subscribers will be able to see every single thing on my screen. And I won’t necessarily be sharing those trades with everybody, because this is a lot of money, and I only want truly dedicated people learning.
Let me get to some other brokers, too. Because even though I say, “Oh, E-Trade andand my high net worth broker,” everyone’s like, “Okay, that’s great. But, what about these brokers?” Decent, but not great brokers, I would say, are Fidelity, Schwab, Scottrade, Questrade. They’re not great in terms of short selling. They’re not great in terms of fees or execution. They’re decent. But I understand that different brokers have different rules, different minimums, different countries. I think Questrade is Canadian. So, Interactive Brokers, I wish their minimum was lower, but their minimum is $10,000. And, if you’re under the age of 26, there’s a loophole where you can put in $3,000. But, I know many of you can’t afford $10,000 and I know E-Trade doesn’t accept a lot of countries. So, there’s no real perfect broker. And my high net worth broker, the minimum is $30,000 to $50,000 and you have to make a lot of trades just to keep it open. So, there’s no perfect broker. So decent…if you’re okay with just going long and paying a little more for commissions and not getting great executions, these aren’t terrible, but they’re not great.
Brokers I don’t recommend, though, Robinhood. Terrible, terrible, terrible executions. No after-hours, no pre-market trading, no short-selling. Very, very dangerous, when you enter the battlefield and you’re less prepared than other warriors. The stock market is a battlefield, make no mistake. And, if everybody else on the battlefield has a gun or a machine gun and you come on with a knife like Robinhood…yes, Robinhood is free, there’s no commissions. They’re going to try and make money other ways. But, you are at a severe disadvantage and I’ve already heard some horror stories of what those disadvantages cause. You get what you pay for.
And, in my experience, as much as people complain about commissions, a lot of that is just in your head. A lot of it is like, “Oh, I can’t make enough money because the commissions are too high.” Maybe because you’re choosing bad trades where you’re not potentially making 20, 30, 50, 100% gains. Those are the good trades that you should be focusing on. The problem is, many people don’t know the good trades, so they focus on random trades, random patterns. And yes, if you do that, then guess what? You’re going to get random results and commissions are going to matter.
In my experience…and granted, I’ve started with a few thousand dollars now several times, and I’ve grown it to hundreds of thousands and millions of dollars within a few years several times. Not once did I ever care about the commissions that E-Trade orhas charged me. If I focus on the right trades, the commissions are negligible. You just have to be choosier (?) with your trades. I know that you think that you have to trade every single day, you don’t. If there’s not a great supernova, if there’s not a huge volatile stock, if there’s not a stock that you can make 20, 30, 50% on, don’t trade. The commissions can actually be a good thing in helping you prevent over-trading. No different than the PDT rule, which many people hate, I hated it at first. When I first got started teaching, I was like, “Come on, let everybody trade.” Now I see how many newbies over-trade. The PDT rule helps you and we’ll get into that in a second.
But, I also don’t recommend any prop firm, hedge fund or offshore broker like. In the past, I’ve used . In the past, I’ve looked at considering prop firms and hedge fund brokers. I think that regulation is gonna come down hard on all of them in the next year or two and you don’t want to be there when the regulations come down. They’re all very questionable. They have very, very spotty services and executions and fees. I just don’t trust them, I’m sorry. I like to stick with my multi-billion dollar brokers like E-Trade and and my high net worth broker, I’m only putting in $200,000 because they have the best borrows when I want to short some of these supernovas. And, I think that makes it worth the risk.
But, other than that, I don’t think any of these companies…and there’s, you know, hundreds of little prop firms and little hedge funds and offshore brokers. I just don’t want to be there. I think winter is coming no different than in “Game of Thrones.” And, you know, it might take a year, it might take two years. But, any one day, it could come down. It might be a week away, for all I know. And, if you have your money there, you’re not necessarily protected by the FDIC insurance. And, it’s a very questionable situation and I just try to avoid questionable situations. It’s not worth it. I want you in the game to be able to trade. And so, for me, it’s a safety kind of thing.
And, I also don’t like leverage and I think that, you know, the PDT rule is good. I know many of you are trying to escape the PDT rule. I don’t think you need to. Look, just open, like, you know, up two accounts. Oh, I should add TDto this. TD is not great for shorting, but they’re a decent broker. And, I know many people who have, like, one E-Trade account and one TD account. Guess what? The PDT rule, for those of you who don’t know, you get three day trades per five rolling day period. So basically, three trades per week. But, what is a day trade? A day trade is in and out, same day. If you hold the stock overnight, it’s not a day trade. So, you can hold a stock every single night and make a day trade three days out of the week. So really, you get, like, eight trades per week, which is more than enough that you need, especially if you have a small account. And, the PDT rule is for accounts under $25,000.
The good news is the PDT rule forces you to be more choosy with your trades, which is so, so important with your process. All of these students…well, not my dad, but all of these students, like Mark Croock, 80% of his profits come from 6% of his trades. We did the math. It’s crazy. Dux’ trades…look at this. He’s making money 73% of the time. Do you think that he’s trading every single second? If you look at his trades and you go into it, he has some losses, but he’s also waiting. And he’s also waiting for the best supernovas. Look at this, GLBS, $25,000, SINO, $20,000. SINO, $17,000. And these are…secret broker on Profit.ly is my high net worth broker. So again, we don’t want to overwhelm them with too many people, and especially because 99% of my students can’t even afford to use it. So, that’s why I say it’s my secret high net worth broker. I’m not trying to keep you out. I wish that their minimum was $2,000. I wish that they were a huge company that could afford to just cater to everybody. But, they can’t and they don’t, so I respect that.
But anyways, the PDT rule is not something that you need to be avoided. And commissions are not something that need to be avoided. That’s just broker marketing. They’re taking advantage of newbies who think that commissions and the PDT rule are holding them back. When in fact, if you look at me and all of my top students, none of us got to where we were by trading every single second and scalping every single second, okay? We choose the best trades. And that comes when you have knowledge.
So, I actually say this for 2017: stay in cash the majority of the time. Only trade when there’s a great play. And, if you have any questions, watch my HowToMakeMillions guide. People mock it, that it’s called “HowToMakeMillions,” that’s fine. But it’s also all for charity. It’s now raised $2 million for charity. And it’s 35 hours long and comprehensive. This will teach you what a great play is. It is the foundation of your education. And as I’ve been saying lately, it’s very difficult to build a house when you have no foundation. So if you’re serious about your education, watch this guide. It’s 35 hours, I know, but it is packed not just with lessons from me, but also several other millionaire students and other millionaire traders, some of whom aren’t even my students.
I also have my free Trader Checklist guide. There’s been a lot of questions. Don’t worry, if you go to traderchecklist.com, it will be free. I just can’t deal with all these people saying, “Oh, it’s not going to be free anymore.” The first 11 hours will always be free. Right now, as I’m filming this, I’m actually working on nine more hours. So it’s going to be a 20-hour guide. The next nine hours, if you want them, that’s going to be premium. But at least you’ll have this…let me just put this in here. It’s an 11-hour guide. If you go to traderchecklist.com, it will always be free. Because I just can’t deal with people who are saying, “Oh, you don’t want to me to learn.”
But if you want to actually invest in your education, which I think is better…sadly, not enough people are even watching the free stuff. That’s why I thought about making a premium in the first place. Contrary to what a lot of people assume, if you have a free video, like, “Oh, everyone should watch it. It’s free, there’s no risk.” Something psychologically gets changed when you have a free video. People don’t value it properly. People don’t study it. And the numbers that I’m seeing on Trader Checklist, it’s much lower people studying this, than the guides that they paid for. And it’s kind of crazy. So I’m always interested in creating the most successful students. I don’t care what it takes to get you to study. I’ll post pictures of my Lambo, I’ll post pictures of my trips, I’ll post pictures of my charity, I’ll post pictures of my family. All I want to do is show you the life that you could have if you study. And everyone is motivated differently. So this Trader Checklist guide will always be free. In a few days, I’ll have nine more hours completed for the 20-hour guide.
Also, we have a free penny stocking guide on TimothySykes.com. The direct URL is this, tim.ly/pennystockguide. You click that. And it is a free guide on trading penny stocks. Look at this, “Penny Stocking 101.” And this took my team and I several months to complete, so read it, please. It’s very good and useful. And we also have my bestselling book, “An American Hedge Fund” for free on TimothySykes.com. Here’s the URL in case any of you want to be ambitious and actually type in the URL. This is, download the free eBook, and so you can see my backstory.
I’ve always gotten into this “Sharing every trade” kind of thing. And this really pisses off a lot of questionable characters in trading and in the broker world, and in the penny stock world. I don’t know why transparency is so tough. I guess if you’re a fraud, if you’re doing sketchy stuff, I guess that’s a threat to your existence. So I’m sorry. I don’t mean to threaten you frauds and you sketchy people. But eventually, just be real. It’s so much easier. It’s such a load off. It’s just…ugh, it’s sad.
Anyways, I have to remind you, 90%+ of traders lose due to a lack of preparation, so do not make that mistake. Study, study, study, prepare, prepare, prepare, and your odds of success go up. Now some people have said, “Oh, Tim, you’re so lucky. All of these trades is just luck.” Well, I find that the harder I work, the luckier I get. It’s kind of interesting, huh? So yes, maybe sometimes I do get lucky. Sometimes, I am there when there’s a good play and there’s good overnight news. Do I have inside information? No. I have charts and I have the odds on my side because I know what to look for, and I know what makes a great setup.
Also, I cannot guarantee any profits whatsoever. I can only guarantee that I will share every single thing that I’ve learned with you over two decades, and I’ve been studying and trading nearly every single day. I missed my college graduation for a trade, just to give you an idea of how dedicated I’ve been. I post every single trade publicly, and I have more millionaire students and now, more upcoming millionaire students than anybody else. But if you have doubts, it’s okay, you don’t have to learn from me. Nobody is forcing you. Some people are like, “Oh, I have all these problems with you.” Okay, so don’t learn. Ignore my rules, patterns, and lessons at your own risk. And the cool thing is when people go that route, they usually come back three, four, six months later, and they say, “You were right. I tried on my own or I tried learning from this other newbie, and I lost $10,000, $20,000, $30,000, $50,000, $100,000.” You can learn on your own. You can learn everything on your own. But it’s going to cost you a lot more money and it’s going to cost you a lot more time, and it’s just going to be frustrating. And I’m very proud of my teaching, as you can see.
Also, don’t force trades. I’ve said this a few times in this video, but just let me say it one more time. You do not have to trade every single day. Especially midday. I’m looking at my chatroom and I’m seeing all these people like, “Oh, it’s 11:30 in the morning Eastern,” or 12:15 p.m. Eastern, and they’re going crazy with potential trades, and they’re trading. Very little volatility is useful at midday for trading purposes. Most big traders take midday off. Most of the volatility comes in at the market open and the market close the first half hour or the first hour of the trading day, and the last hour of the trading day. You could theoretically trade just two hours a day and capture the vast majority of the good place. And I know many students who do that. Many of you think, “Oh, you have to be there 9:00 to 5:00 every day.” I don’t want the stock market owning you. I don’t want you to become a slave. I know too many addicts who love it and they don’t even realize that they’re addicts or slaves because frankly, they live through the stock market. Up or down, it doesn’t even matter, it’s all action for them. And that is the mind of a degenerate gambler. They don’t even mind when they lose. They’re like, “Well, that’s the market. She’s a beast.”
You don’t have to lose big. This was my first year in 2016, actually, where I did not have a big loss. So it took me 18 years to control my emotions and discipline. Tim Grittani, I think this was his first year when he didn’t have a big loss. And he’s in his year five or year six of trading. He traded a little bit before me and he didn’t have any success. And also, mind you, Tim Grittani took nine months to get consistently profitable. Some of you guys are emailing me after, like, week three or week four, and you’re like, “Tim, I just don’t get it. It’s so overwhelming.” Because you’re just starting, okay? You need to give it time. So many of you just want millions of dollars so quickly. Put in six months, nine months, 12 months, 24 months. If you don’t get it after 24 or 36 months, then you have my permission, you can quit, okay? Because even somebody as dumb as Forrest Gump can get it within 24 to 36 months. But in the first few days and weeks, you need to focus on studying much more than trying to go for big profits. You need to increase your knowledge account before you can grow your monetary account.
Let me just reinforce this one more time. The PDT rule, where you can only make three day trades per week, is not a bad thing. It’s actually a very good thing for newbies to trade less. If you hold stocks overnight, it does not count against the PDT rule. So you can do it every single night. But I want you to be sure to choose wisely because overnight positions also have additional risks.
This is all a game of risk/reward. There’s no easy way to millions of dollars, it’s tough. And that’s why I do so many video lessons and give so many webinars, and now I have my top students helping out, too. It’s tough to become a millionaire, a multimillionaire. It’s tough to get on this path of profits, you know? Look at Mark Croock’s profit chart. It looks beautiful. But look at this, for nearly half a year, he was flat. He got off the path. Michael Goode, he’s been on the path very well. Tim Grittani, he’s had some bumps along the way. So don’t think, “Oh, it’s just so easy. Once you have a few thousand dollars, you just turn it into a few million.” You don’t know what your path is going to be. You don’t know what your three or four or five-year profit chart is going to look like, okay? So understand that you can make mistakes.
But rule number one is “Cut losses quickly.” I’ve never, ever met any student who has been successful if they don’t cut losses quickly, okay? You can’t ignore that rule. I don’t know any traders who are just like, “Oh, I’m just never going to cut losses. You know what? Screw it. I don’t like that rule, Tim, I’m just going to throw it out. I’ll just let small losses potentially turn into big disasters.” And sometimes, it will. You don’t need to risk disaster to make a lot of money. There are gunslingers out there all over the place, and they think that’s the only there’s not.
What I do, I know it might seem cowardly, where I take small gains and I could make 30, 40, 50% on a gain, and sometimes, I take 10%, and people are like, “Oh, Tim, you’re so bad.” I still made the 10%, okay? As “bad” of a trader as I am, I’ve still made $4.5 million, you know? My little $12,000 account still grew to over $100,000 in 2016, and I’ll post my income tax returns soon when I get them done, and you’ll see that. I post my income tax returns to show you that pretty much every single year, I’ve made six figures. I’ve never personally had a seven figure trading year, okay? And I need you to make that clear. The key to making millions over time is not necessarily to have any one big year. It’s to get on the right path and develop good habits.
So many of you guys starting with just a few thousand dollars, you’re scared. You’re like, “Oh, god, I don’t know what I’m doing.” Well, study. And if you’re pissed off and you think you know what you’re doing and you’re like, “Ah, I wish I had a bigger account to prove it,” well, grow your account. The quickest way to get out of the PDT rule is to challenge yourself and grow it yourself. When I’m starting the year with just $5,000 at E-Trade, guess what? My focus is to get over $25,000. Because even though the PDT rule is good for newbies, it’s annoying for me as a veteran trader. I want to be free to trade whenever I want.
But, it’s a good challenge for me to go from $5,000 to $25,000. I don’t know how long it’s going to take me. But, I’ll just try to make a few hundred dollars at a time. $200 here, $300 there, $100 here. Sometimes, I’ll be wrong and I’ll lose $50, $100, $200. On my $1 million account, I don’t know what’s going to happen. I might have a down year. Nothing is guaranteed, even if you’ve been trading for 18 years. But if you have the rules in place, you have the odds on your side, as opposed to people who don’t prepare, people who try to follow alerts from other traders. Never follow an alert from anybody. Learn from traders. See why they’re getting in and out of a stock. I don’t want anybody ever following an alert with me. I’m very proud when several of my students start seeing, “Oh, Tim likes this pattern.” And they anticipate my trade ahead of me.
Guess what? You can do that. I share every aspect of my trades. Some people are like, “Surprise, Tim, I guessed your trade.” Yeah, no shit. Because I’m teaching every single thing about my strategy. It took you long enough. Mark Croock often does the exact same trades as me, or he predicts my trades…he’s giving commentary in the Challenge chatroom. And he’s like, “Tim’s probably going to buy this,” or “Tim’s about to short this.” And I do. And I don’t even see his commentary until afterwards. I’m not following his directions, either. He just knows the patterns. He’s watched all of my video lessons three times. And granted, I have 4,000+ video lessons. But they’re only five minutes long each. We’re talking a little over 300 hours of study.
Now, I know you just want to play Netflix and go out to the club and hang out with your friends and your family and stuff like that. But do me a favor and make 2017 a year of study. You will thank me for it later. Your future self will thank you for it later. Studying is what will make you financially free.
So, in summary, any questions, email firstname.lastname@example.org. My team and I are always here to help you on your journey, and to cut through the BS in this industry. Again, we cannot manage money for other people. I cannot guarantee that you will be profitable. All I can do is teach you rules that I’ve learned the hard way. And I’ve never had a mentor. So every single day, I’m trying to be the mentor to you that I never had. Because even though I made money, I was lost, and I did not have good rules, and that led to several of my biggest losses. I mean, I’ve lost over $500,000, personally, on a trade because I broke rules that I didn’t even know I needed, okay? So I wanna try to prevent you from making boneheaded mistakes. Forget about even making a lot of money at first. Let’s just focus on cutting your losses and minimizing your risks so that it’s not stressful and it’s not scary and it’s not overwhelming.
That’s what 2018 is all about. Obviously, I want more millionaire students. Obviously, I want to be on “The Steve Harvey Show” and all of these other shows and I’m talking with them. Not necessarily just about trading, but also about my upcoming seven figure charity donation where I’m really excited.
But anyways, I love my job. I’m very grateful for all of you. I’m sorry if I’ve come down hard on you some of the time, but it’s for your own good. I’m trying to be the best teacher I can. Sometimes, I go a little overboard, and when I do, I apologize. But I’m going to be your toughest coach that you’ve ever had, I guarantee you that. Because no one cares as much as I do. This isn’t just a business for me, this is a mission. When I see so many traders losing, when I see so many traders without rules, it makes my blood boil. It pisses me off that some people still think that short selling penny stocks is illegal. It pisses me off that some people think, “Oh, you can’t make a lot of money under the PDT rule.” I have too much experience and too many examples of students and myself who have proven otherwise. And I want to get that good information out there.
So that’s what 2018 is all about, and you will see me trading with these three accounts; $1 million for some live trading videos for subscribers, and then $5,000 with E-Trade. And we’ll see how I grow them. Win or lose, every single trade is a lesson. And the more that you study the past, you’re better prepared for the present, and that makes your future even better. I know it sounds corny, but it’s true.
I’ll see you guys in the chatroom tomorrow morning. I’m filming this on a holiday, the stock market is closed today. But, tomorrow morning, I want you in the chatroom, prepared by 9:00 a.m. or 9:15 a.m. Eastern, so that we can be ready for the market open at 9:30 a.m. Eastern. Let’s do this. Let’s make 2018 great. I’m excited.