I’ve been chillin’ in the Caribbean to start the year. I really needed to recharge my batteries. My goal was to just relax. Instead, I’ve been posting non-stop about the devastating bushfires in Australia.
It’s estimated that over one billion animals have died. (There’s no way to get an exact number.) But here’s the thing…
… while it’s tragic that an estimated one billion animals have died, now we’ve gotta focus on the living.
Check out the videos in the post below.
Please share the post with your followers. While these animals have survived, it’s clear they’re extremely traumatized.
Over at Karmagawa, we came out with a whole new collection specifically to help Australia. We’re donating all Karmagawa profits for January to several great charities. They include NSW Rural Fire Service, WIRES Wildlife Rescue, and Deep Peace Trust. Also, Adelaide Koala Rescue, Australian Red Cross, and the Balu Blue Foundation. And there are more.
The new collection is selling out fast. Actually, a lot of the charity merch on Karmagawa.com is already sold out. Which is awesome because we’re trying to raise $100,000 for January. We’re now roughly halfway there. It’s a good start.
Here’s how you can help:
Go to the Karmagawa shop and buy something. Or…
… donate directly to the Karmagawa Foundation.
All donations are welcome — big or small.
Now let’s get on with some trading talk…
Table of Contents
Trading Lesson of the Week: Take Singles
There are SO many trades right now. The best lesson when there are so many plays is simple: take singles.
If you look at my recent trades, I have mostly small wins. We’re talking $98 on Demand Brands, Inc (OTCPK: DMAN), $102 on BioRestorative Therapies, Inc. (OTCQB: BRTX)…
On Cannabix Technologies Inc (OTCPK: BLOZF), I had a small $210 win. Another on the same stock was basically a scratch at $7. There are also a few bigger wins, but they’re still relatively small.
But check this out…
In the first seven trading days of the year, I made $10,645.** That’s an average of roughly $1,500 per day. So how is my average higher when I’m mostly taking small wins?
I follow rule #1: cut losses quickly. Which means the bigger wins are MUCH bigger than the losses. In other words, I keep the losses small so the wins — big or small — add up.
Like this…
On a third BLOZF trade, I made $1,337 on a 7.64% win. On another trade, Rafarma Pharmaceuticals, Inc. (OTCPK: RAFA), I made $1,050. And on January 8, I had my biggest win of the year with a slightly bigger dollar position.
[**Please note my results are not typical. I have exceptional knowledge and skills developed over time. Most traders lose money. Trading is risky. Do your due diligence and never risk more than you can afford.]
Trade of the Week
Let’s take a look at my biggest win — so far — of 2020…
Zion Oil (NASDAQ: ZN)
There was a lot of movement in oil stocks for a few days as the crisis with Iran unfolded. Zion Oil was a recent runner on January 6.
Look at the Zion Oil one-year chart below:
The stock spiked again premarket on January 8. My goal was to take 5%–10% on a morning spike and cut losses quickly if it failed.
Here’s the ZN intraday chart from January 8:
As you can see, it had a nice morning spike. I’m glad I took a slightly larger size. The trade was a 12.2% win for $2,750 profit.** My plan is to size up in the next few days as I get used to taking bigger positions again. But I’m still getting used to the crazy market.
There are just SO many plays. So take singles. Don’t go for home runs, because just as fast as these stocks spike … they can drop, too.
Trading Question
Let’s get to a question from a Trading Challenge student…
“Tim, considering the market is at all-time highs and you’re easing back into trading with a big account, are you keeping your risk levels tight?”
Yeah … but still … you always have to keep it trade by trade. You can’t get too cocky.
Also, more than just the big account … and more than the market at all-time highs … there are five to 10 stocks spiking 50%–100% … every day.
So you have to choose your spots. And sometimes you have to be OK with missing out.
Take Trillium Therapeutics Inc. (NASDAQ: TRIL) on January 9, for example…
TRIL had a multi-day breakout in the $1.60s–$1.70s range. I’ve been watching the stock for a while. It was one of my top five penny stocks to watch for January.
Both Mark Croock and I saw it. Mark took a small position. I think he got in around $1.70 and sold around $2.00. Then the stock just kept going. In the commentary on Profit.ly I even said, “I’d be selling in the $2.40s NOT buying/chasing.”
The stock went to $3 plus … the same day. So it nearly doubled. It was the biggest move the stock has had for months. I missed it.
But several students nailed it. Check out these tweets from students…
@Nick_n13l17 gets it … singles add up…
I always underestimate these big runners.Took 88 of $TRIL from 1.725 to 2.3 and it rips to 3.14 as the HOD so far. Took a tiny piece of the move and I keep doing this. Lol. Singles add up but I need to work on my patience when it starts making new highs.@timothysykes #ontothenext
— Nick Neal (@Nick_neal17) January 9, 2020
And @Chesskid90 saw TRIL on my free watchlist…
nailed $TRIL @timothysykes bought 1k at 1.76 , sold 500 at 2.2 , sold 250 at 2.45 , sold 125 at 2.70 , 120 at 2.85 and 5 shares at 3.05 haha made about $600 bucks wish i went bigger but my stop was .20cent to start off.. any who was on your FREE watch list.. ppl respect the man!
— Sean Riddell (@Chesskid90) January 9, 2020
Or @KhyleSocrates, who caught the breakout beautifully…
Caught the $TRIL breakout in @ 1.86 out @ 2.45
Made up all of my loss from yesterday plus a little bit more!
Have a great day, everyone! 🔥🤙🏼@timothysykes @profitly
— Khyle Socrates (@KhyleSocrates) January 9, 2020
What you have to remember is…
It’s OK to Miss a Play
You have to be OK with missing it. If you see it … and if you can profit from it … that’s awesome.
But it’s important to learn to…
Choose Your Trades Carefully
If you miss a trade, try to take the lesson … “OK, I saw what happened there. I recognized it. I’ll try to do better next time.”
For me, I don’t do as well with short squeezes — and that’s what’s been working best in the market lately. Sometimes that happens.
Some people ask why I don’t trade a stock like TRIL when I see it. Again, there are so many plays right now you have to choose what works best for you. For example, I prefer OTCs to Nasdaq stocks.
Which leads me to a final trading lesson for this edition of the update…
Bonus Trading Lesson: How to Avoid Becoming the Typical Penny Stock Gambler
The good news is there are a lot of plays. Which means there’s a lot of money to be made.
The bad news is…
… because there are so many plays, students stop studying the past.
They say, “Yeah, yeah … OK, Tim … your pattern … blah, blah, blah…”
New to penny stocks? Get my FREE penny stock guide here.
Then they focus on whatever’s hot. So they become the typical penny stock trader: a gambler. They chase other people’s alerts. They chase big movers and wonder why they’re not having success.
Here’s a great example…
One of my top young students, Jack Kellogg, made $72,341** in the first four months of 2019. His trading profits went from roughly $38K to $111K during that time. This is what Jack had to say about getting back to the process…
Yes, It was cool to make a lot of money in a very short period of time, but it taught me all the wrong lessons. I struggled for a solid 5-6 months after that. I got away from my process and started to chase money.
— Jack Kellogg (@Jackaroo_Trades) January 9, 2020
So Jack is back to his process. He’s back to studying and focusing on what works best for him. And I’m proud of him because he’s killing it. His profit chart on Profit.ly is a nice steady uptrend.
[**Jack’s results aren’t typical. He’s developed exceptional knowledge and skills through dedication, study, and experience. Most traders lose money. Do your due diligence and never risk more than you can afford.]
Learn From the Past
Don’t forget the past. All these plays should encourage you that there’s money to be made. But if you truly want to maximize your profits, you MUST study the past so you can be fully prepared.
Here’s another question I get a lot: “Why are your students trading stocks that you’re NOT trading?”
Unlike many fakes in this industry, I teach my students to be self-sufficient. I don’t want you following me into a trade. You should avoid following anybody else into trades.
Many of the most frequently asked questions are answered in “The Complete Penny Stock Course” written by my student Jamil. Get it. Read it.
How do you become self-sufficient? Study the past. Study like you’ve never studied before…
Use Evenings and Weekends to Study
Use every weekend … and every night to study. Every single newbie is playing a game of catch up. Remember, this game has been played for decades. You’re just getting used to it. You’re just learning about it.
You have to trade for several years before you move out of Newbieville. You have to go through different market conditions and gain a lot of experience.
There are those of us who have been profiting from this stuff for decades. We pick off newbies for fun…
So don’t be easy prey. Instead, arm yourself and learn from the past.
Millionaire Mentor Market Wrap
That’s it for this edition of the update. Please, share my post about the Australian animals with your friends and family. Tag influencers. The more we spread the message, the better.
Also, be happy to take singles.
Finally, choose your trades carefully and don’t allow fear of missing out get to you. There will always be another hot play. If you struggle to find the best stocks … use StocksToTrade. I use it every single day. Also, I use these brokers and trade with these rules.
Before you go…
Props to Students
Since so many students banked on the TRIL breakout the other day, I want to give some props. Here are just a few of the comments from the Trading Challenge chat room on the day of the big breakout…
10:03 AM KCremeens: in $tril last night 2000 @1.52 out right before market open at 1.66. then the break out.
10:07 AM Mfaulk: Bought 1k TRIL at 1.72, sold 1.96 for a 244 profit.
10:09 AM kaiser_soze: TRIL bought 1000 shares @ $1.74, out at $1.87 (got out too early but still a win).
10:09 AM ThePennySqueeze: Sold rest of TRIL 1.98, could go higher but i’ll take my $711.64 in profits.
10:10 AM EARL: damn sold TRIL at 1.90 but not upset, made my 10% and was on the right track.
10:19 AM Mk12 → markcroock: TRIL bought 1.75 sold 2.21, 1500 shares…Thanks a lot Mark…I was about to sell at 2.00 and read your post about 2.20…
10:22 AM rrhyner2: TRIL in at 1.67 out at 2.20. only 300 shares lol darn it.
10:30 AM Indian_Curry: TRIL ..in @1.67..out 2.64 ..sweet $1450.
10:30 AM Jastaff: $Tril In @$1.24 yesterday out $2.65 today.
Congrats to all students who study hard and take action!
[Students’ results are NOT typical. Roughly 90% of traders lose. Always remember trading is risky, and never risk more than you can afford.]
What do you think of this post? Comment below, I love to hear from all my readers!
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