How To Become A Profitable Trader: A Lesson In Patience And Adapting

become a profitable trader

I recently received a wonderful email from a former trading challenge student that may very well serve to quash every preconceived notion about trading that you’ve ever had. Think you can rely on my trades alone to grow your account? Think you’ll have success right away and you can just ignore my rules? Nope! You can’t! Here’s how to become a profitable trader!

Download the key points of this post as PDF.

You have to learn these key penny stock rules and to make your own trades, find your own strategy, and learn what works best FOR YOU as we’re all different and we each have our own strengths and weaknesses.

Joe, a Trading Challenge student from 2016, learned this the hard way, and has shared his experience with me so I could share it all with you. No sense learning the hard way! You have to trade like your own man, just like Joe.

Please read his email to me in its entirety and leave a comment under this blog post if the lessons makes sense to you.

Hey Tim!

I hope you have been well. I wanted to shoot you a quick email and thank you for all of your teachings. I am 27 as of two days ago, and I am a husband and a father of two wonderful kids. I work a full-time job as a Finance Manager for a car dealership here in San Antonio, TX. I work about 60 hours per week and my goal is to one day do this trading thing well enough to leave my full-time job and travel with my family. Those are my goals. Onto the juicy stuff about how I blew up and made it all back….

I began the Millionaire trading challenge on May 16, 2016. During that year, I watched all of the DVDs time and time again. I watched a countless number of video lessons. I also watched all of Grittani’s webinars and as many of Michael Goode’s webinars that I could. Bottom line, there is a LOT of content and it is there to teach and prevent people from losing like I did. Still, it did not prevent me from losing.

The most valuable lessons I learned about the stock market were never in the chatroom or from watching any content. The most valuable lessons I learned were the ones the market taught me when I tried to apply your rules and strategies…the wrong way of course… Hence me blowing a $5,000 account in the beginning. I was profitable in the beginning. I had a few wins here and there when the first bitcoin hype was hot, along with some wins on $BTSC and others. But then I began to get very aggressive with shorting, but my shorts were all at the wrong times. I learned some valuable lessons on stocks like $AVEO, $VSTM, $DRYS, the list goes on… 

My most valuable loss was on $MGTI. I was short (for some idiotic reason) before your alert on the breakout buy you made back when the thing was in the $1.90s breaking into the $2s. This was the first time bitcoin went wild. I had a risk level and failed to cut the loss when it broke, and I thought “Eh, I’ll just average up. I have the account equity”.

That was the one thought that did me in… I began to add into the supernova all along the way to $3s. Once it hit into the $3.50s, I started getting bought in slowly from IB because I had ran out of equity in my account with my position size and my losses from averaging up. All the way up into the $4s at the top, I was getting bought back in… piece by piece. I had never felt so stupid in my entire life… I was just getting squeezed to death (truly…). The last buy in I had was $0.05/share before the top was in and it crashed. Then it crashed and I got to exit breakeven on the remaining shares I had—BUT not before I had destroyed $2,217 of my $5K account first with buy-ins.

There are still countless lessons that I have learned that I hope others don’t learn the hard way like I did.

So after the $MGTI loss, you would have thought that I would’ve thought, “Maybe I should stop shorting”. HA! Oh no, I kept shorting. And losing big. Until I blew up the whole $5K and another $1400 that I had deposited to fulfill my margin requirements to short… So I stopped, but really, I only stopped because I ran out of cash, not because I had learned from my error. So after $6,318 in losses… I stopped. I stopped trading all together for about two months, and I went back to studying. By this time, my challenge had ended. So I couldn’t rely on the chatroom for picks that were moving or your alerts for trade ideas or anyone else. I was on my own with no training wheels. This was a blessing in disguise. I then saved up $8K quickly to fund my accounts again. I funded IB with $5K and Etrade with $3K so I would be able to get around the PDT a little bit. Not that I wanted to overtrade or trade daily, but I wanted to be able to trade when the setup was right and not worry about running out of day trades. I stayed disciplined and focused on a swing trade pattern that I had learned in my time off, and I didn’t day trade at all for the first month.

But I tried to hide my earlier losses from myself and others. I deleted all of my trades from Profit.ly and just started from scratch. I thought “maybe if I just delete all of these losses they will go away. I don’t need that negativity.”

Well one day I told myself, “don’t be ashamed of your losses…they have taught you valuable lessons and you should keep them in front of you so you don’t forget the valuable lessons they taught you.”

So I re-verified all of my trades and stared at the -$6,318 and faced it head-on. I slowly worked my way back into shorting because I’m a degenerate and very cynical. But this time was different. I was disciplined and was not going to insult myself and my education that I have paid so much for by making stubborn decisions. I also forced myself to be patient from the long side as much as I am from the short side. This was what brought me out of the hole and brought me back into the green. I began trading break-outs again and shorting overextended OTCs. Those are my bread and butter, and both patterns I learned from you that have helped me stay consistent over the last 90 days.

As of today, 01/23/18, two days after my birthday and a year and a half into my trading journey, I have won back all of my losses and am now profitable. (Thank you $EMHTF…LOL)

I have mirrored your trades on $EMHTF and $POTN… not on purpose. Remember, I currently have no subscription to your service, but I will rejoin one day. I just find that I can’t control myself when all I do is stare at the chatroom and watch people make money. Then I go into this mental downward spiral, thinking that I suck and can’t trade. So I just don’t pay attention to that stuff. I don’t need to hear other people’s ideas. My trades are my own, and if my trading plans aren’t working, I will figure out how to modify and make them work because the patterns are proven to work if I trade them correctly.

I have grown the $8K into $14,400, nearly doubling my account that I funded again only four months ago.

That first day that I turned everything around was 10/26/2017. It felt like it was only up from there.

Here are my profit charts and my trades:

Trades: https://profit.ly/user/JKelly/ trades?fromDate=10/26/17&toDat e=1/24/18&sortDir=desc&sortBy= date&filter=date:custom

Thank you so much for your lessons and everything you do for us aspiring traders. Check back on me in the next 90 days and see where I am in the green.

Thanks Tim,

Joe             

If you would like to share your trading challenge lessons that you have learned, drop me an email, I’d love to share them!

 

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28 comments

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. Jennifer Komondy

    Magnificent share! I love this quote, “I was disciplined and was not going to insult myself and my education that I have paid so much for by making stubborn decisions.” Really, really hit home with me! Joe, I am glad you decided to be transparent in your trading on profit.ly- this is the reality- everyone will stumble- and when they can take those losses as lessons-it makes them better traders. Thank you Tim for sharing another students journey-

  2. Rich

    Excellent article Tim and Joe and Congrats to Joe on applying the correct strategies and staying disciplined. And most importantly not giving up on yourself.

  3. Nelson Figz

    Joe,
    As I go through my ups and down, reading your story is very helpful! I started my challenge not too long ago. I had a $600 win on my first trade but not too long after lost about $800 in a few trades. So I decided to stop and now feeling a bit anxious about going back.
    This career take time and I’m focus on being patient. I also, need to act to keep learning and not freeze up!

    Joe thank you again for sharing and for inspiring others to continue!!!!

  4. Ken Crombie

    Tim and/or Joe… I have been loosely following Tim and others – on the outside looking in) for many months now… I have saved up enough money to buy into some education (Tim’s), and to open an account with about $5000… I am determined to fund my retirement this way. My question to you (anyone really) is what program is the absolute best (and most efficient use of my $$$) to start with… I have been thinking about the Millionaire Challenge ($2000 I think?), and/or the Retirement program that Tim just recently introduced ($3000 / year I believe)… I can spend the $3000… but I want to be sure this is the most effective and efficient use of my education $$$…. I appreciate any and all input.

    Thank you … All the best!

    Ken

  5. Michelle

    Very inspirational. I am new to this. I am trying to soak in as much knowledge as possible. Thanks for sharing your story.

  6. Troy

    Awesome stuff….I won’t run from my failures anymore either. Thanks for the honesty as that’s the Sykes movement is all about. Trade ez.

  7. Joseph Kelly

    Ken,

    Do exactly what Sykes is saying. I would expound a little further and say the How To Make Millions DVD and subscribe to Pennystocking Silver. Once you have watched HTMM, go back and watch from Video Lesson #1 all of the way to current. Then once you have watched that, get Trading Tickers from Tim Grittani and watch him trade all the setups you just learned from Tim Sykes and watch how Tim Grittani trades them live. That mashup right there will be a good foundation. Then once you have got a foundation from that material, take the Challenge. If you don’t have the discipline to make it through all of those video lessons, the Challenge will drown you with educational material. The Challenge is an educational fire hydrant of knowledge smashing you in the face and if you don’t have a good foundation, it’s going to blow you off your feet and drown you.

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