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Independence Day : Land of the Free … Home of the Traders! 

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Written by Timothy Sykes
Updated 10/15/2021 5 min read

When you think about Independence Day, what comes to mind? Probably things like barbecues, beer, and fireworks … and probably not things like studying, trading plans, and chart patterns.

Hey, it’s only natural: after all, Independence Day is kind of a catch-all summer holiday dedicated to carefree time off from work. And everyone needs a little time off.

But today I want to remind you that it’s also a day to be thankful for the freedom that you have — both as an individual and as a trader.

Independence Day: The Price of Freedom

Consider this…

… on July 4, 1776, the original 13 colonies declared independence from the British monarchy and the United States was born.

Without that meeting of the minds and declaration, things might be very different today…

  • We might not be the United States of America.
  • We might not have the incredible freedom we enjoy as U.S. citizens.
  • We might not have the stock market at all!

In my life and as a trader, freedom is one of the things I value most. It may seem ironic that I spend a lot of my time outside of the U.S., pursuing adventure. I aim to make the world better through my efforts with Karmagawa and want to help raise up others who are less fortunate through my charity work.

And the ability to travel like this gives me great perspective on the freedom that I’m afforded as a U.S. citizen.

Had I been born somewhere else, I might not have had the freedom to begin trading with my $12,415 of bar mitzvah money, which I turned into millions. I did it against all odds and much to the surprise of my parents (they thought I’d blow it all and learn a big, fat lesson).

As a trader, I’ve been able to pave my own path to financial freedom and find the freedom to live the lifestyle I want. And I want that for you too.

It’s Not All About Money

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Listen, it’s not all about money. Money doesn’t buy happiness. But money can be incredibly helpful in moving you toward your goals and the things that can help you find happiness.

For me, trading has been the gateway to financial freedom. Many of my students have the desire to attain this type of freedom, and I’m proud to say that some report that they’ve reached their goals.

Here’s the catch: It takes work. A LOT of hard work.

There are plenty of would-be students who give up because they think it’s “too hard” to study and learn the stock market. They want to jump in and trade. And usually, with that approach, they end up with less financial freedom than when they started, because they blow up their accounts and lose money.

Of course … that’s part of freedom too. You’re free to blow up your account if that’s what you want.

But is that really what you want?

If you’re able to take a longer look at what you want to attain in life, then you’ll probably see the value in learning all you can about the market so that you can become self-sufficient and begin to find consistency as a trader.

Do You Want to Be a Trader?

I’m going to say something controversial now…

What I teach — trading penny stocks — isn’t necessarily the right path for you. Just because it was the right path for me doesn’t mean it’s the right choice for you.

But if you think it is, ask yourself this: are you willing to work as hard as Trading Challenge student Jack Kellogg?

Jack wanted to become a trader badly, to the point where trading took up his days and even dreams. He studied all day every day for over a year. Now, he reports that he’s on his way to becoming a successful trader.**

That might not be the road you want to travel, and that’s totally OK. There are plenty of things that you can apply yourself to and get ahead. But if you think this is the path you want to take, now’s the time to dedicate yourself to becoming the best trader you can possibly be.

With Independence Day looming, you probably have a few days off from work … so how will you use this freedom?

If you want to get started as a trader, it’s an ideal time to apply for the Trading Challenge, check out my HUGE video library on Profitly, and begin to delve into the trading waters.

But my Challenge isn’t the only resource you’ve got this holiday: there’s also an extra special offer going on via my favorite stock screener, StocksToTrade.

Happy Independence Day!

How can trading help you attain the freedom you desire? Leave a comment and let me know your goals.

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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

* 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”