My Secrets to Success**
This morning I gave a live trading challenge webinar and promptly dip bought Turtle Beach Corp (HEAR) at $10.70, looking for it to follow this pattern that I tweeted about earlier since it’s a Friday morning:
Sure enough the Friday morning spike pattern combined with this strategy that is so hot right now combined to create a MASSIVE spike of roughly 50% from my buy alert! Check out the awesome 2-day chart on this earnings winner:
Now I didn’t expect that big of a spike and I sold wayyyyyyyy too early just under $11, but this is a GREAT example of the kind of upside potential that exists on my strategy…and the $5 million that I’ve made over the past few years is just barely scratching the surface (hence why my top trading challenge student has made $6+ million in 1/3 of the time that it took me!)**
So, do you want to know my secrets to success? I’m happy to share them with you.
Nearly 20 years ago, my parents gave me control of my $12,415 Bar Mitzvah gift money, and I used it to make my first million buying hot penny stocks breaking out to new highs. ** Then, I made my second million shorting those same kinds of pumped up penny stocks as they crashed, while mostly everyone else lost money by not adapting to the changing market.**
The fact is, though, while I have made a lot of money, I’m not necessarily smarter or different from anyone else trying to make it as a day trader. I’ve had struggles, and I’m definitely not right all of the time.** I think that my story should inspire others to believe that they can do it, too. Here, I’ll share some of my so-called secrets to success. Hopefully, these will inspire you to see how much you can do as a trader.
1. I don’t play into the BS. Some like to say “those who can’t do, teach”. That’s not the case with me: I am an active trader, and I like to be transparent. There are plenty of so-called teachers out there who really just want to take advantage of would-be traders. That’s not my approach. I want to cut through the lies and offer real information. This is part of my goal with the Tim Sykes Millionaire Challenge. I don’t believe that knowledge should be hoarded.
2. I see penny stocks for what they are. Penny stocks are stocks which are offered for under $5 per share. Typically, the companies offering these stocks are small; maybe they offer 1-2 products. They don’t make much money, and as such, most investors are not interested. They’re considered long shots. While every now and then you can get lucky, usually most of these companies fail. However, this fact can actually be used to your advantage. Once you learn how penny stocks work, it is possible to profit as they go up and as they go down.
Moreover, I see penny stocks as what they are. I don’t expect miracles, but I look for patterns which can deliver profits…just like the first green day, dip buy and earnings winner pattern that combined on my HEAR trade to make it so solid…despite my taking a small fraction of the overall move (I usually play things too safely and exit too quickly)
3. Small wins add up. It might not be flashy, but one of my secrets to success is a slow but steady approach. You won’t see me holding stocks that go up 500% or 1,000%. I’m fine taking 10%, 20%, 30%, or even 50% gains on my investments. My average profit per stock trade is on the lower side. However, by repeating my successes over and over, the gains add up over time. So while the $2000 I make on a trade might not be much, when I do it a thousand times over and over, it adds up to millions!
4. You can’t win all the time. Nobody wins all the time in the stock market. Actually, I’m wrong roughly 30% of the time. However, I have good trading plans and solid research, so I typically know when to get out, and I keep my losses small.
You never want to lose, but it’s important to acknowledge that it goes with trading. It’s part of the package. So instead of focusing on always winning, focus on always learning from your mistakes and minimizing your losses.
5. I don’t trade every day. A great play isn’t necessary every day. If there isn’t movement in the market, don’t try to force something that isn’t there. Instead, focus on studying and improving yourself so that you can be prepared to make a trade when you see a positive pattern appear. I don’t just trade for the sake of trading: I want to profit when I trade, so I am willing to wait for the right time.
6. Study, research, patterns, repeat. Stock market patterns repeat over and over and over. Basically, this means that by studying the past, you can be prepared for the next time the best patterns appear. When you’re prepared, you can position yourself to profit from these recurring patterns.
However, the ability to benefit from patterns requires a lot of studying, observing the market, and probably some trial and error. Are you up to the challenge? I teach members of the Tim Sykes Million Challenge team some of my methods of detecting patterns in hopes that it will help them refine their own methods. No two stock patterns are exactly alike, but by studying the past and witnessing them in the present, you learn to react and find the best profit angle.
7. I act like a retired trader. That’s right: I approach every trade as if I am a retired trader. A trade really has to be incredible to lure me out of this “retirement”. This is a shift in mindset that allows me to look at every trade in a serious way. It makes me value my trading and make better decisions. If I’m in “retired” mode, I feel less pressure to force trades; I let them come to me.
8. Do good for the world. In recent years, I have become increasingly committed to donating to charity. The difference my money has made for others inspires me to continue earning so I can continue giving back. This is one of the true secrets to my success: I have found something to be passionate about that keeps me motivated to keep earning.
I began giving to charity in earnest a few years ago, and I wish that someone had told me about the benefits of giving back early in my trading journey. Since I created the Timothy Sykes Foundation, 35 schools have been built or are in development, in over a dozen countries around the world.** Education is my passion, and every child deserves it! It is a great feeling to see the difference I am able to make for the world in this way.
9. I learn from my students. I don’t hold back: I share all of the knowledge I’ve amassed with my students. But it’s not just a one way street. My top millionaire trading challenge students are also teachers to me.** They are constantly challenging me in different ways and making me look at trading differently. In that way, it’s a reciprocal relationship: we both benefit from learning from each other and that’s the beauty of this little niche community I’ve built over the last 10 years.
There you have it: the so-called secrets to my success. Truthfully, none of them are incredibly secretive or groundbreaking, but together, they have helped me create the life of my dreams. Now, I want to help you find the life of your dreams!
Leave a comment below if you now better understand why the odds of success are in my favor on EVERY TRADE and that adds up nicely over time!