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Trading Lessons

3 Things You Can’t Do In A Chaotic Market 📉

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Written by Timothy Sykes
Updated 10/20/2023 6 min read

If you’re listening to the media, you’re likely bombarded with unsettling headlines from global unrest to inflation concerns.

And if there’s one thing the market hates the most, it’s uncertainty.

I warned about this volatility several months ago…

However, it doesn’t mean there isn’t opportunity out there.

Even in this heavy sell-off, I’ve made over $17K in profits since September 1st.

That said, if you want to get ahead, then you must avoid doing these three things. 

Some of them might surprise you, but they’re why I’ve stayed profitable.

#1 Don’t Feel Bad If You’re Scared To Trade

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This market is highly volatile.

And because of that, I’ve had to tweak the way I trade.

Although I’ve had success…it hasn’t been easy.

If you feel like this volatility is overwhelming…

Then don’t trade.

Nothing is super clean in this market.

Yes, we’ve had some fantastic short squeezes, but still…if you’re not nimble, you can’t take advantage of them.

It’s okay to sit on the sidelines if you’re not comfortable.

Instead of trading, use this time to study patterns and work on your trader psychology.

#2 Don’t Fear Losses

You might want to size down to adjust to the current volatility.

Even if you do, you might find yourself losing more trades than you usually do.

It seems like every time I make money, the next trade is a loser.

The key to my success during this stretch hasn’t been my winning percentage…

It’s been the fact that I’ve had larger winners than losers.

I’ve been keeping my losses small.

Moreover, I’ve been trying some new stuff so I’m not expecting to be perfect.

When I lose a trade I don’t beat myself up about it.

I look at it as feedback.

Valuable information that I can take into the next trade.

#3 Don’t Get Greedy

Now is not the time to be playing hero.

Yes, short sellers are giving us opportunities.

But remember, if you’re trading penny stocks, you’re likely trading the worst of the worst companies.

As quickly as they shoot up…they drop just as fast.

Be grateful for all the short squeezes…but take profits along the way.

It’s a message I constantly preach to my students.

It’s very easy to lose track of perspective when you’re greedy and solely focused on making money.

Profiting in this current trading environment requires discipline and experience.

Want to Thrive Amid Market Turbulence? 📈

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The market’s unpredictable nature has even the most seasoned traders on edge. The volatility is palpable with media churning out distressing headlines and the market’s aversion to uncertainty.

🚨 But here’s the good news: With the right knowledge and strategies, this can be a goldmine of opportunities. As evident from my recent successes despite the heavy sell-off, adapting to market changes is the key.

🔥 Discover why you should never fear being on the sidelines, how to take losses in stride, and the importance of keeping greed in check.

These insights have kept me profitable and have been instrumental for countless students.

Ready to Master the Art of Trading in Turbulent Times? 🌊

🚀 Be a part of our exclusive live training session.

🚀 Delve deep into actionable strategies for the current market scenario.

🚀 Witness in-depth, real-time analysis, unveiling the market’s hidden dynamics.

🚀 Learn not just to swim with the tide but to harness it to your advantage.

Ditch the outdated plays and become the trader who’s two steps ahead.

Your roadmap to navigating this chaotic market awaits.

👉 CLICK HERE TO JOIN THE LIVE TRAINING! 👈


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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. Read More

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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”