Bryce Touhey is my latest Millionaire Challenge student to cross the $1 Million threshold.
His Genius Group Ltd. (AMEX: GNS) made him look like…well…a genius.
And he was plenty excited!
But the road he traveled was anything but easy.
And it can teach you a lot about turning a profit over the long-haul.
You see, Bryce sat just under $1 Million for most of 2022.
In fact, most of his gains happened in early 2021.
I cannot express how proud I am of Bryce.
He needed a ton of patience and determination to hit $1 Million.
We recorded this YouTube video back in June 2022.
This video is chock-full of great insights, including how he prepares for hot markets.
I want to take this a step further and offer my take on why I believe Bryce succeeded where so many others failed.
And my reasons might surprise you.
Shore Up The Basics
Did you know that Bryce spent nearly two months limiting his risk to just $2 per day?
How many of us can say we would or even could do the same?
Then again, maybe you should consider it.
If you haven’t read it, take five minutes to go through the article.
The setup used three simple concepts to create a juicy trade:
- News catalyst
- Former supernova
- First green day
Quite honestly, a trader could trade just this setup and do quite well over time.
You may not take many trades every week, but with practice, you can get REALLY GOOD at just this one setup.
And that’s all you need.
Most traders get in trouble when they get bored and force trades or step outside their comfort zone before they’re ready.
I see a lot of folks join the Millionaire Challenge and try to learn and use everything all at once.
Look, there’s tons of content for students, and it’s easy to get excited.
But let Bryce’s success show you the way.
Get really, really good at the basics, focusing on just a handful of setups you understand and are comfortable with in terms of risk and execution.
Learn to Love PDT
You don’t need to trade every day and every stock.
In fact, the traders who trade fewer, better setups often do better.
Case and point: Bryce used the last of his buying power to make that GNS trade.
How is that possible?
Bryce told me that when he’s not trading on camera, he’ll often reduce his account size below pattern day trading (PDT), or $25,000.
This limits him to three roundtrip trades per five trading days.
PDT is certainly annoying when you’re profitable and want to scale out of a trade.
But, as Bryce told me point blank, he considers it an account saver.
PDT forces you to become more selective and only take the best setups.
You can use this restriction to help prevent overtrading, one of the most common problems that plague traders.
I know it’s hard to imagine but do this. Take a few weeks and limit the number of trades you make. Then compare that to your typical performance and see how you did.
Don’t Let a Good Trade Go Bad
I’m not going to tell you that I wasn’t shouting at Bryce to lock in a profit…
But I made my point rather loudly.
Look, everyone wants to hit that homerun…that GNS.
Don’t force those.
If you trade well, statistically, they will happen.
Instead, make sure that you lock in profits and cut losses quickly.
Bryce took this to heart with that GNS trade. Once it gained enough, he moved his stop to breakeven, making the trade risk-free.
Most of my trades only average 5%-10% gains.
I don’t try and swing for the fences.
And when I lose, I keep it small and fast.
A lot of traders think that profits are what matters.
But I can tell you that Bryce and all my Millionaire Challenge students know that keeping losses to a minimum is key to long-term success.
Take today’s three lessons and incorporate them into your trading.
They’re small steps that can make a world of difference.