It’s Tim Sykes here.
Even the best traders in the market lose now and then.
The goal is to keep our losses smaller than our gains.
See Jack Kellogg’s trades below:
Understand, you’re not alone if you lose a trade …
Sometimes, from a new student’s perspective, it seems like me and my millionaire students are trading perfectly. Then the new student gets frustrated trying to replicate perfection in their own trades.
Pay attention: I’m not perfect. Neither is Jack Kellogg.
You need to accept your faults to succeed as a trader.
For example, to keep my losses smaller than my gains … I have to accept when I’m wrong and get out of a trade before it falls apart even further.
This is an essential mindset for traders.
Even Jack Kellogg, one of my most successful millionaire students, had to modify his process recently after taking some losses.
He didn’t give up. He accepted his mistakes. Then he buckled down and figured out how to get back in the groove.
Follow Jack’s lead!
Here’s how to get in the groove and find YOUR GAINS right now:
Jack’s Process
It’s easy to think that Jack trades perfectly …
But earlier this year he started taking some big losses. And as a result, he modified his process.
Below is an image of Jack’s trading spreadsheet for the month of September.
Everyone should keep a spreadsheet to track and learn from their trades.
Notice how certain days show big swings in his profits and losses (+ and – $100k). Jack mentioned that he was trading with larger sizes in September and that he was swinging for the fences. He tried to make big trades and pull big profits.
Sometimes the added risk led to larger losses than he would have liked.
Now, let’s compare September to October and November …
Jack lowered his position sizes and focused on taking singles. The result: He was more controlled and didn’t get emotional about his trades.
The potential for profits might not be as large, but his losses are much more controlled.
Take a look:
And so far in November:
Here’s what we can learn from Jack’s process right now:
- Stop swinging for the fences.
And …
- Review your trades to find what works.
You don’t have to print out charts or spend hours pouring over past trades.
Just scroll through your orders for the week and make a note:
“This was a dip-buy trade, how did it go? This was a breakout trade, how did it go?”
You’ll realize pretty quickly which plays work best for your account.
Once you figure out what works, you can size up to trade with more money.
Jack’s Next Trade!
Even I’m learning from Jack’s process right now…
The student has become the teacher!
When I started trading in college, over two decades ago, nobody was teaching this. I had to figure it out on my own.
To contrast, my students had the benefit of following my journey. They learned from my successes and my mistakes.
And as a result, Jack Kellogg is a better trader than me.
After starting in 2017, he passed my career profits of $7.8 million and is sitting at $13.4 million (including losses).
I’m not afraid to admit that Jack is a better trader. Instead, I plan to learn from his positions.
It starts by following his next setup …
In the video below, you’ll learn Jack’s next BIG trade:
Make sure to take notes and study his process! These plays repeat in the market.
The pattern that Jack uses for his next trade, it’s not the last time we see an opportunity like that.
Focus on what works and apply it to our own account!
Cheers.
*Past performance does not indicate future results
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