If you want to grow a small account over time, you need to learn to sell into strength. Too many newbies get that deer-in-headlights look when a trade goes against them.
So even though my rule #1 is to cut losses quickly, many times I cut profits quickly. If that seems counterintuitive, keep reading. It could save you from big losses and potentially grow your account much faster. Not to mention reduce your risk.
Before we get to trading talk…
Table of Contents
Animal Charities Don’t Take Days Off
Last week was a little busier for me. I was traveling around Florida and Georgia visiting several animal charities.
I'm proud to announce two new $20,000 donations from my @karmagawa charity to @FarmoftheFree and @sweetolivefarm to help them rescue & take care of more animals. Please retweet/favorite this & share their profiles w/your $TWTR $FB followers too as they need our support right now! pic.twitter.com/ib3RV0Cdge
— Timothy Sykes (@timothysykes) December 14, 2020
Sadly, after record charitable donations in 2019, 2020 has been tough. Roughly 80% of nonprofits reported a drop in revenue as of June. More than 70% had to cut back services. Things haven’t gotten better.
Some charities I talk with report a 60%–90% drop in donations. And some of the hardest hit are animal charities.
There are no days off for these charities. It’s not like they can deal with a 90% reduction in hay. The animals would starve. So that’s why I spent part of last week visiting animal charities like RVR Horse Rescue. Karmagawa donated $20,000 to support the incredible work they do.
Many charities have seen their donations drop 60%+ in 2020 while I’m having a record year so I’m proud to dress up as Santa & give holiday gifts to incredible & deserving organizations like @RVRHorseRescue which is a 100%-volunteer-based charity that rescues horses! CC @karmagawa pic.twitter.com/F0DnWryJ7z
— Timothy Sykes (@timothysykes) December 7, 2020
Karmagawa had another proud moment last week, too…
Karmagawa’s 71st School Opens
We’re proud to announce Karmagawa’s 22nd school/library with the Bali Children’s Project. It’s called the R. Wolf Learning Center after top student turned master, Roland Wolf. It’s also our 71st school. One school at a time, we WILL get to 1,000.
Here’s the school when the work was just getting started…
Here are some more photos from the construction of my @karmagawa charity's 71st school in Bali, I am SO proud to donate millions of dollars to help as these kids deserve the best shot in life and a proper education is the key! Please retweet, help me get more people to give back! pic.twitter.com/e1hzMQ8nKI
— Timothy Sykes (@timothysykes) October 17, 2020
There was A LOT of work to do. This is how the school looks now…
I'm proud to announce my charity @karmagawa 71st school has opened, along with all new books & toys, a breath of fresh air compared to the old worn out books they previously had. This is our 22nd school/library project with @BaliChildrensPr more schools/libraries are coming soon! pic.twitter.com/k5wlIaCPDL
— Timothy Sykes (@timothysykes) December 9, 2020
I’m SO proud to donate and help kids get a proper education.
During the Holiday Season, Give What You Can
I know 2020 has been tough on a lot of people. But if you’re in a position to give, there will never be a better time than now. And if you’re not in a position to give, share those tweets to keep spreading the word. Together we CAN make a difference.
Some people ask why I’m so public about my charity work. It’s because I believe in the power of social media to spread the word. I don’t show our donations to brag, it’s to help people understand what these charities are doing.
Now let’s talk trading…
Trading Mentor: This Market Is Special
Usually, this section of the update is where I answer one or more student questions. This week is a little different because you need to take advantage of what’s happening right now.
I made +$12k today on $SFOR $TSNP $TMXN $TGHI but missing $VTVT $RSCF $SHMP $MJTV entirely, +$48k this week, +$104k in December & now +$1.105 million in 2020 trading profits, 100% donated to charity to get more traders giving back & to help students focus on learning THE PROCESS!
— Timothy Sykes (@timothysykes) December 11, 2020
It doesn’t matter if you’re brand new to penny stocks or an experienced trader. Wherever you are in your journey, you can grow one of your two accounts…
Grow Your Knowledge Account First
You have two accounts: your trading account and your knowledge account. If you already have the knowledge and experience, this is a time to push it. Grow your trading account while the market’s hot.
If you’re still learning, this is an amazing time to learn. Paper trade using StocksToTrade. At least watch the stocks my students and I trade each day to see the incredible moves.
Want to see me trade live for a whole day?
Your Last Chance for Market Mastery in 2020
The final Market Mastery 2020 live trading session is happening tomorrow, December 16. When you invest, you’ll get access to 12 full sessions. (One per month for 12 months.)
But this market is special…
I can’t promise any trades because I only trade when the setup is right. But if tomorrow’s Market Mastery goes anything like the rest of December, get ready. Watch me sell into strength and lock in profits along the way. So far I’m up $112,236 this month.* (Only June started better for me in 2020.)
(*Please note: My results, along with the results of my top students, are far from typical. Individual results will vary. Most traders lose money. My top students and I have the benefit of many years of hard work and dedication. Trading is inherently risky. Do your due diligence and never risk more than you can afford to lose.)
All the while, I’ll be explaining my thought process including…
- What made me buy? (Assuming I take a trade.)
- The news catalyst and where I heard it.
- My goals for the trade — especially when to cut, when to hold, and when to sell into strength.
- And more.
Click below to join me for the…
Final Market Mastery Live Trading Session of 2020
@timothysykes thank you for the market mastery alert on $ASDN
In at 0.045 out at 0.0731- 62% gain of $280. If you didn't have time to get into the market mastery program, your missing out. Once a month live trading and 1 high conviction alert… just one alert can pay it all off.— Moe (@Momad786) November 25, 2020
Study History to Prepare for the Future
I often say I’m just a glorified history teacher. That’s because you learn so much about trading by studying the past. One thing about 2020 is that there have been so many plays, it’s like compressing your trading education.
Check out these two videos to help understand how amazing this year has been in the stock market…
3 Rules You Need to Crush It in This Market
You can watch this one on my Facebook page…
December 2020 Penny Stock FAQs
Watch it now.
Trade Review: Sell Into Strength
Again, this market is special. But it’s also a perfect storm where people can learn the wrong lessons and promoters prey on newbies.
First, many newbies think you have to sell at the top. You don’t. All you need to do is take the meat of the move. (Which means learning to sell into strength.)
Sadly, unethical promoters take it a step further and claim, “Those who sell are weak!” Actually, the opposite is true. Weakness is going into a trade without a trading plan. Weakness is not having clear risk levels.
SO many new traders lately, let me just give you one piece of wisdom I learned the hard way over 20+ years: SELL INTO STRENGTH & DON'T WORRY ABOUT TAKING PROFITS TOO SOON! I see far too many people trying to sell right at the top, screw that, just try to take the meat of the move
— Timothy Sykes (@timothysykes) July 30, 2020
Want to know how my top students and I have grown our accounts over time? We sell into strength whenever possible. Learn to take profits along the way. Singles add up over time. Cutting losses quickly is the RIGHT thing to do. Selling into strength is the RIGHT thing to do.
Let’s review my biggest win from last week as an example…
Tesoro Enterprises, Inc. (OTCPK: TSNP)
TSNP has been an amazing stock in the past few weeks. I’ve made $79,964 trading it, mostly on morning panic dip buys.*
One of my TSNP trades on December 8 was my biggest win last week.* Here’s the chart showing my buy and sell alerts:
As you can see on the chart, this was a classic morning panic pattern. My goal was to sell for 5%–10% on the bounce. It might not look like much on the chart, but the stock bounced 22% in nine minutes.
As I mentioned in my sell alert, I didn’t size in or out properly. And I only took 12% of the 22% move. But my goals, and more, were met. Even though I underestimated it, it was a $9,120 win for me.*
And it’s also a great example of what I mean when I say to sell into strength.
Learn to Sell Into Strength
If you can learn to sell into strength, it will take a lot of the frustration out of trading. My thesis is just plain wrong sometimes, but I still get a small win. Other times, I underestimate the move — like in the TSNP trade review above.
Either way, it takes the stress out of trading when you cut mechanically. With experience, you’ll learn to recognize a wall of sellers. You’ll know when you’ve overstayed your welcome. You’ll learn to sell before you hit the wall. Or at least as soon as you see it.
(Not sure what a wall of sellers looks like? Study my “Learn Level 2” guide.)
That doesn’t mean you won’t have losses. And it doesn’t mean you won’t be dead wrong sometimes. But continuous frustration will be less likely. And … you’ll have a MUCH better chance to turn the corner to profitability.
So study my trades. Study Jack Kellogg’s trades. Study ALL my top students’ trades. Learn everything you can from Roland Wolf, Mike “Huddie” Hudson, Matthew Monaco, and Kyle Williams.
IMPORTANT: All my top students are part of the Trading Challenge.* Apply here.
See how often we sell into strength even when we could’ve made more. It’s less stress, less pain, and more gain over time.
Millionaire Mentor Market Wrap
Like the rest of trading, learning to sell into strength takes time and experience. But once you start to lock in profits along the way, singles start to add up.
Plus, it gives you the opportunity to review your trades from a perspective of “What could I have done better?” As opposed to “Oh, crap, what have I done?”
Remember, when in doubt, get out.
Trading Education Resources: 30-Day Bootcamp
If you haven’t watched my 30-Day Bootcamp, it’s a great place to start. It has all the basics in one place.
Here’s what two 30-Day Bootcamp students had to say…
“Tim Sykes 30 day bootcamp, youtube, investopedia, books. I am also a millionaire challenge student for @timothysykes this has changed my life in more ways I can count. His lessons, chatroom, trading teachers, are the reason I have had success so far.” — Emily Kirley
And this…
“Just want to thank you so much! Joined boot camp 2 weeks ago- made $878 on Tesla puts and $3893 on Nio puts!! So happy!” — Selena Kellinger
Start YOUR 30-Day Bootcamp today. (Note: you don’t have to complete it in 30 days. You get lifetime access.)
Are you ready to learn to sell into strength? What do you think of this post? Comment below, I love to hear from all my readers!
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