Don’t Make This Classic Mistake In The Stock Market

Recently, I’ve been blogging about the problems that my students have, as I did in this blog post “A Controversial Problem That Too Many Of My Students Have” which tried to get students to be less narrow-minded in their approaches to various strategies and my blog post entitled “This Is A Big Problem” that outlined some of th fears that cripple too many students and prevent them from achieving all they can and becoming my next Millionaire trading challenge student.

Download the key points of this post as PDF.

Today’s problem is exemplified nicely by this video I just posted:

…where the penalty kick looks to have missed, which leads the goalie to celebrate too early and leave the net undefended even as the ball slowly trickles back in and scores the goal, much to the surprise of everyone in the audience.

Likewise, in the stock market, newbies often celebrate their wins far too early and “leave the net,” or in this case, just leave their position open, mistakenly believing that they’ll keep winning more and more whereas the veteran athlete knows the play isn’t over until the whistle blows, no different from how veteran traders know a trade isn’t over until you exit the position safely.

And, we can take this video another way in that the player who struck the ball is devastated by his “miss” and only as the ball trickles in does he realize he has actually scored…and since this was a penalty kick, there was really nothing else for him to do.  But, too often athletes, and traders, give up mid play, or mid-education, thinking the worst and lowering their odds of eventual success.

You MUST READ THIS BLOG POST “A Key Trait You Need To Become A Millionaire” to realize that great success and “winning” takes time, sometimes even years longer than you initially believe, and yet it’s ALWAYS POSSIBLE WHEN YOU’RE STILL IN THE GAME.

The single greatest mistake you can make is letting any one play in sports, or any one trade in the stock market, take you out of “the game” so that no matter what happens you cannot make a comeback since you’ve already quit.

I can’t tell you how many trading challenge students have messaged me a few weeks, or even a few months, into their journey thinking that they’ll never truly “make it,” because the studying is just so much and for whatever reason they’re not making the money they thought they would, despite putting in so much time and effort.

I always remind them that this famous trader, profiled on CNN here, “Trader turns $1,500 to $1 million in 3 years” took 9 months not to become a millionaire, but 9 months just to be consistently profitable…and he has arguably the single best track record in the entire world in the past 5-6 years!

So, if the best trader takes 9 months just to basically learn how to win a little and not lose, how long do you think it’ll take you? Watch this great Q&A I did with him in Bali to get some awesome answers and to give you a better perspective on the journey that you’ll need to take in order to be successful:

No different from the goalie not realizing the ball could still score and running off to celebrate too soon, too many students “leave the playing field” too soon as they mistakenly put too much emphasis on their short-term performance, not realizing that you need knowledge and experience BEFORE you can make outsized gains, and the knowledge-gathering process is NOT fun, but it’s crucial to your longer term performance and sustainability.

I know far too many gunslingers who have had short-term success, but without the proper preparation or education in learning how to manage risk and their losses, and they blow up, losing 50%, 75%, even 100% or 150% of their money…which begs the question how do you lose more than 100% of your money?

Easy, you go into debt and then you owe your broker money, since your account balance can’t keep up with your losses — which applies to many newbie short sellers who think it’s okay to just short and short and short every penny stock that’s up a little due to their poor fundamentals and then those newbies shorts not only lose everything, they lose everything they have and more and only then do they realize my lessons about trading like a coward actually work and keep you in the game.

Here’s a great video lesson about trading like a sniper, where the mission is to aim small, miss small…NEVER risk a big losses, NEVER risk disaster on any on trade or investment:

So, I hope today’s blog post helps you do a few things — and please leave a comment under the post and tell me if I’ve succeeded or not:

1. NEVER GET COCKY…in sports or in the stock market

2. NEVER CELEBRATE TOO SOON…in any aspect of life

3. NEVER QUIT TOO SOON…as the journey to excellence, success and lasting wealth is long

4. NEVER THINK THAT THE JOURNEY IS GOING TO BE EASY IN ANY COMPETITIVE FIELD…try to picture how many failed athletes, failed traders, and failed startups there are in the world…in each field, there’s only a few true greats and luck definitely plays a part in their success, but if there’s one thing I’ve learned from my own journey, and success, and the success of my top millionaire trading challenge students, is that while you can’t control how lucky you’ll get, the harder you work, the harder you prepare and study, the luckier you get over time as practice makes perfect and while you will NEVER be absolutely perfect in any field, especially as a stock trader, your process gets better and more refined over time so the key is sticking around in the field that you love and grinding and hustling every single day until you find a strategy that feels right and works consistently…and even when you find that one strategy or have that one big success, never get too comfortable as there’s always someone else who is hungrier than you looking to dethrone you so stay on your toes at all times and never give up on the dream of the past, you must fight just to keep them alive!

Posted in Fess Up Time

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Timothy Sykes

Hey Everyone,

As many of you already know I grew up in a middle class family and didn't have many luxuries. But through trading I was able to change my circumstances --not just for me -- but for my parents as well. I now want to help you and thousands of other people from all around the world achieve similar results!

Which is why I've launched my millionaire challenge. I’m extremely determined to create a millionaire trader out of one my students and hopefully it will be you.

So when you get a chance make sure you check it out.

PS: Don't forget to check out my free Penny Stock Guide, it will teach you everything you need to know about trading. :)

  1. Pedro Pablo

    Es totalmente cierto,solo con la experiencia sabras cuando celbrar, pero mientras estemos en aprendizaje lo mejor es seguir las reglas al pie de la letra para poder ver frutos en el stock market

  2. Barbara Ann

    Thank you Tim for sharing your story with us and reminding of how to stay grounded and focused. You have given me more financial hope than anyone else around me. There is no one around my family or friends who sacrifice time and want to learn so that they can have a better life. So I say thank you with all that I have for inspiring me to stay focused, keep on studying, and not giving up. My aspirations are to be your student for many years.

  3. Brian Ellison

    I’m a three weeks old challenge student, studying 12-15 hours/day. I hit a wall of overwhelm this evening and this message was a truth I needed as a reminder of what is necessary and what is possible. Thanks Tim

  4. Andrew

    Thanks Tim, I really needed to see this blog post. I am embarrassed to say this, but I wiped my account. To make matters worse I ignored one of your rules… I used leverage and wiped that out too. Now I am in debt big time, stressed out but I haven’t given up! It was totally my fault, and there is no one to blame but myself.

    Like the goal keeper I celebrated too early, I was seeing large unrealized gains within my trades, but I was too damn greedy and held on for more gains. Those gains quickly turned into large losses, but since I wasn’t disciplined, I repeated the same cycle with other trades, in which I would see large gains, I would get greedy once again and hold on, then those gains would wither away to negative territory fast.

    It may take awhile to work off the debt, but it has a taught me a very valuable lesson which I will never repeat again going forward and hopefully one day I can laugh about this in the future. Now that I am fully aware of my weakness, I will avoid such greed and I will “aim small, miss small…NEVER risk a big losses, NEVER risk disaster on any on trade or investment”

    In the mean time, I will continue to study hard, work off my stupid unnecessary debt and when ready, I will trade again but this time fully disciplined with my more knowledge.

    Thanks for all you do!

  5. OceanRider

    Certain things take time. This process takes a lot of experience which is related to time but outside of duration, not likes to time itself but other factors.. The other factor which is not visible is, what the person has going on in their life during the process which they are trying to make progress with trading. Let me just say, life does not get easier as one gets older. Wife, kids, life, work, responsibility, other family related situations, all of these things eat at the attention span and energy of the person trying to accomplish something great.

    A person who tries to be successful trading needs to be rock solid in their commitment to overcome so many things.

    Regarding time, if it takes a full time person over a year of studying and working on trading (325 days * 16 hours), the beginning start of success is at least 5200 hours of effort just to see the beginning of progress.

    Out of the thousands and thousands of stocks out there, it is amazing how few are good candidates to actually trade. 99.999% of the stocks out there are not worth trading in a given day. With that said, it takes a ton of time to recognize this and know what to do when. THEN, the hardest part of them all is, selecting the right one at the right time once, then again, then again, then again. THEN, the even harder part (for me is) cutting the losses right then and there. No excuses here but this is hard to do when I am trying to do this from work, on my cellphone.

    Talk about a long journey and one not easy to cross. The good thing is, once a person knows what to do, at least they are on the next step of how to do it over and over. Being a sniper is what this is.

    The good thing about success is, once it starts, the path to the top won’t take long as compounding does its thing as all of the top students show what IS possible.

    Wishing everyone who reads this a great week going forward and many more to come on their journey !

    Thanks Tim.

  6. Aris

    Tim, I watched the video and I was so moved. Bali was part of Indonesia, and I was born 2 provinces away from Bali and I love what you did to my people.

    Thank you, Tim.


  7. Dwayne M

    Hi Tim,
    This Blog Post is extremely helpful. As the old saying goes, “A picture is worth a thousand words.” This is a very short video. I was amazing to watch it a few days ago. Now with your added blog, the message sent by the video is even more valuable. So Tim,….. YES this blog/article has helped me. It is better that I say, YES this blog IS HELPING me [for my journey is far from over]. Thank you Tim for all your hard work and dedication. I am still on the Journey towards Financial Freedom and the ability to Live Life to the fullest and not only exist through life. #MMP #BeHumble #StudyStudyStudy #StudentDayTrader

  8. Jon Snow

    This is one of the best of the best blog I have read so far. Tim, could you please write another blog on “Living the Dream” or How to live the Dream? Etc…. Thank you Tim and keep up the good WORKS 🙏

  9. Nhya

    I think about quitting every single day, but you don’t lose until you give up. For the moment -550$, at least I’m learning how to take loses first, so most of my winning trades are still ahead of me 🙂 I will get there, slowly, painfully but steady.

  10. Joseph Williams

    Thanks Tim! Great post, you have succeeded. I will not get too cocky, celebrate, quit, or think that the journey is going to be easy, but I will better myself each day, and do what it takes to succeed. Thank again for the post.

  11. Fred Becker

    Great advice from Tim Grittani. “Learn to react not predict” and Tim Sykes, “don’t even worry about trading profits in the beginning. You have to focus on the long-term. Losing a few hundred dollars, losing a few thousand dollars, it sucks. I’m not gonna say it doesn’t. But it’s not the end of the world. You need to tinker, you need to test, and some of the best lessons that you can have are from losses.”
    After 8 months studying/training, and the last 2 months trading I recently was ahead about 2 K . I learned how to cut losses, 5-10%, quickly in a lot of small $ trades and my winners were 25-50%. Started trading in larger $ plays and had 2 trades losing about $1700. This is definitely a great lesson for myself in growing and not to lose self confidence in this game. I keep studying and keep learning.

  12. Misha Mendicino

    It most certainly takes time, patience and the willingness to succeed.. You will have disappointments along the way, but if you want it bad enough and truly love the game then your half way there. Dont be too hard on yourself and keep moving forward.. Each one of us moves at a different pace and will encounter a few obstacles along the way…. 85-90% is mental / emotional… once you recognize it you can overcome it… Stay focused and relax a little

  13. Jermaine Russell

    Steady profitable trades come from consistent studying and believing you’re capability to trust what you’ve learned

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