It’s Tim Sykes here.
Everybody makes mistakes.
Everybody has those days … LOL.
But seriously, don’t feel bad if you messed up last week. As long as you learn from your mistakes.
Even the best traders make mistakes.
We try to stay disciplined and to follow our strategy for profits. But we’re only human.
To help you feel better, last week I probably made my worst trade of the year.
Take a look:
Ouch … That one hurt.
But I’m not going to let this loss define me!
I got undisciplined and I paid the price for it. This is a perfect reminder that there are rules for a reason.
As traders, we have to follow the rules and stay out of bad plays. Because the bad plays will leech our profits from the good plays.
Here’s how to protect your account this coming week … Stay on the horse!
Stay Safe This Week
There are a ton of great setups in the market right now.
For example, last week we watched:
- LDTC spike 780%*.
- CMRX spike 290%*.
- CPIX spike 140%*.
- BNZI spike 90%.
- GXAI spike 180%*.
- AMPG spike 220%*.
- WKEY spike 230%*.
But traders who ignore the rules can easily lose money on setups that otherwise would have led to profits.
I made some serious mistakes last week when I broke my trading rules …
But I’m back on the horse and I’m ready to stay disciplined this week!
Plus, the good news is, you can learn real-trading lessons from my mistakes without losing your own money.
Watch my video below on YouTube:
I made some good trades last week too. But we’re focusing on my bad trades because people tend to learn more from failure than success.
Follow These Rules
The #1 rule that every trader needs to follow is: Cut your losses quickly!
In a market where anything can happen at any time, it’s important to recognize when a trade starts to fail. That way we can get out before the chart turns from bad to worse.
Plus, we can always get back in later if the price action reverses.
When it comes to my TRVI trade from last week, you’ll notice in the notes that I tried to dig myself out over-and-over again. I added shares and lowered my average.
But I should have cut the loss when I first recognized the chart breaking down.
Let me explain:
My students and I use popular patterns to trade these stocks. The process involves buying shares around a specific support level and holding until the price spikes into an upcoming resistance level.
If the price falls below our support level, that’s our cue to sell for a small loss.
“Cut your losses quickly” is rule #1.
And this is the second BIG rule that traders need to follow: Don’t trade unless you see a setup that matches our patterns.
Sometimes, a trader will see a stock that’s spiking higher and greed will push them into a stupid trade.
When you see a volatile stock this week, slow down and check my trading framework.
I know that you don’t want to miss the spike. But there’s another spike right around the corner! And another. And another …
I’ve been trading with the same patterns for over two decades. You’re not going to be late. Take time to learn this process now!
The profits will come later.
For guidance throughout this week, get the next trade setup delivered right to your phone.
And make sure to follow the attached rules!
Cheers.
*Past performance does not indicate future results
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