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Trading Recap

The 4 Steps Timmy Took To Get His Groove Back

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Written by Timothy Sykes
Updated 3/23/2023 8 min read

If you’ve ever had the experience of being stuck in a trading slump, then you know the gut-wrenching feeling that comes with it…

Frustration…confusion…helplessness…they’re all there, gnawing at your insides.

But you can’t dig yourself out of a hole by digging deeper…

With over two decades of trading experience and more than $7.4 million in trading profits under my belt…I’ve been there countless times.

In fact, I’ve been in a bit of a trading funk this month.

But I refuse to stay down.

That’s why I made some much-needed changes, and I’m slowly but surely getting back on track.

These steps I took can be applied to anyone who is in a slump.


Step 1: Be Brutally Honest

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Hop on social media, and the main thing you’ll see from traders is them posting their wins.

They falsely suggest that trading is easy and you should make money daily.

But that’s a load of BS.

Real traders know that there are ups and downs to trading. And that losing is part of the game.

When you find yourself in a trading slump, the last thing you want to do is make excuses.

Stop saying stuff like:

  • The market is rigged
  • My platform sucks
  • The market makers are out to get me

You need to take responsibility for your actions…that’s the only way you’ll begin to correct them.

That’s how I teach my students how to think. 

Start by looking at your recent trades and dissecting where you went wrong.

Some typical mistakes that traders make include:

  • Oversizing their trades
  • FOMOing into trades and getting bad entries
  • Overtrading
  • Trading setups they aren’t good at

Whatever it is, know there is a reason you’re losing money.

In my case, I was overtrading and not patient enough for my A+ setups.

It’s frustrating because I’m investing time to trade, and when I don’t get the results I want, it leads to bad trading habits.

Step 2: Reset

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Losing can mess with your emotions. And as I said above, you can’t dig yourself out of a hole by digging further.

Many newbie traders are eager to get back their losses. So they start trading more or even get more aggressive with their position sizing in an attempt to get back to even.

However, that’s a terrible approach because it’s emotionally driven.

What I like to do is reset.

I do that by not trading or trading far less.

I went a few days without placing a single trade. That helped me regain my discipline.

The New York Stock Exchange opened in 1792…its been around before you were born and will be around after you’re gone. The market isn’t going anywhere, and it’s not really a big deal if you miss a few days if that’s what you need to get back on track.

Step 3: Keep It Simple

what are penny stocks and whats the difference between penny stocks and regular stocks
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Returning to the basics is the best way to get out of a trading slump after a reset.

Find out what has been working for you lately and focus on those types of plays.

If you only have one setup you’re confident about… then focus on it.

You want to get the feeling of winning back again. And the best way to do that is by trading setups you feel comfortable with.

That’s exactly what I tell my students when they are in a slump. 

In my case, I looked for plays that I believed were low-risk and had a high probability of success.

For example, last Friday, I bought the ticker symbol BITF. 


Because I noticed that crypto stocks were moving inversely with banking stocks, and with all the drama pertaining to Credit Suisse and the regional banks, I felt that BITF had a chance to pop on Monday.

Many crypto stocks rallied off the negative banking news, but I saw that BITF had been lagging. I like buying laggards because they seem to offer lower risk.

Here’s another one I thought was a simple play…

I bought the ticker symbol OTLY after a breaking news headline that the company was expanding its partnership with McDonald’s in Austria.

A struggling company making a deal with the largest restaurant chain in the world… seemed like a no-brainer to me.

That same day… I bought shares in the ticker symbol CNTB. 

I had seen that biotech stocks were running hot and that this one was a big spiker on solid news.

But instead of rushing into it…I stayed patient and waited for a panic sell-off in the morning to make my entry. I got exactly that and flipped in and out of this trade for a small profit.


Step 4: Start Small

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If you’re coming off an injury, you can’t expect to be 100% when you return immediately. You’ve got to ease into it. The same is true with trading. If you’re coming off a trading slump, you want to build your confidence back up slowly.

And the best way to do that is by trading smaller than you normally would.

That’s something I tell my students all the time. 

After each winning trade you put on, your confidence grows stronger.

And that’s what I’ve been doing to get my groove back.

So far…so good.

Source: Profit.ly

My last four trades have been small winners. And I’m perfectly fine with that.

Don’t let anyone ever make fun of you for trading small. I know you hear people on social media say things like go big or go home…

Or Yolo…

But that’s dumb.

There’s a reason why I’ve stayed profitable over the last two decades and have over 30 millionaire students.

It’s because these steps I’m sharing with you work.

If you’d like to learn more about how I can help you…click here for more information.  

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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”