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Trading Lessons

Is It Possible to Turn Small Trades into a $10K Monthly Income?

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Written by Timothy Sykes
Updated 8/25/2023 5 min read

Lies…Lies…Lies

That’s all you see on social media

Traders bragging about how much money they make and never revealing their losses.

The truth is you don’t need a lot of money to get started…and you don’t need to trade big either.

In fact, I’ve made over $10K this month without a single win over $1K.

And the best part?

I’m barely in front of my screen trading.

All thanks to this one strategy I’ve been utilizing.

If trading less and making more sounds good to you, keep reading.

Why Less is More

what are penny stocks the bottom line
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Have you ever felt like the harder you work the more difficult trading becomes?

It’s almost like the more time you spend trading the harder it gets.

You’re not imagining things.

The more someone tries to trade, the worse they typically do.

At an extreme, it becomes overtrading.

A lot of folks think that when I say work hard and study hard it means trade more.

That’s the OPPOSITE of what I want.

Instead, I want you to be more patient and selective, reading the charts, and waiting until the setup comes to you.

The key is to remove your emotions from the equation and focus on making the best decisions possible.

At first, it’s going to feel like all you’re doing is waiting.

But trust me, you’ll eventually start hitting trades, and the ones you take will have a better chance of success than what you would have taken.

Real Life Examples

students kyle mari and jack
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Jack Kellogg is one of my most successful millionaire students.

But just because he’s got over $10 million under his belt doesn’t keep him from making the same mistakes as the rest of us.

Earlier this month, Jack took a $15,000 loss. It’s not his worst loss, but it got to him.

So, he decided to take it easy, lighten up on his trading, and focus on the upcoming webinar.

Sure enough, once he pulled back on the throttle, he found success.

In fact, he made almost $100,000 in a week, the majority of which came from T2 Biosystems Inc. (NASDAQ: TTOO).

My journey to $10,000 this month followed a similar path.

I didn’t swing for the fences or force many afternoon trades.

Instead, I watched and waited, striking when the moment was right and locking in profits.

Most days, I was done by 10 a.m.

Take Mullen Automotive Inc. (NASDAQ: MULN) for example.

This stock offered up a near picture-perfect morning panic dip buy.

Even though there hadn’t been many of these setups in August, I waited patiently for one to form.

In the meantime, I practiced and studied morning panic dip buys in preparation for their return.

So, when MULN hit, I was able to take full advantage.

See all my trades posted on Profitly

Now, I only caught a piece of this move, exiting at $0.598. Shares continued to rip higher, peaking at $0.96 on the day.

Some traders took the opportunity to lock in profits along the way, set a stop at breakeven on the remainder, and see how high they could ride the rest.

You never know which stocks are going to become monsters.

So why force it?

Let the trades happen on their own.

Which Setups Are The Best?

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If I had to pick one setup to trade for the rest of my life, it would have to be the morning panic dip buys.

It’s my bread and butter.

But just because that’s MY best setup doesn’t mean it has to be yours.

Heck, Jack Kellogg and Kyle Williams love to short stocks (something I’ve rarely done in years).

It’s the beautiful thing about what I teach.

You see, it’s not about what I do so much as why.

That’s why my next LIVE Strategy Session focuses on helping you find the setup that is perfect for you.

Don’t waste your time chasing the hottest stocks without a plan.

Join my LIVE Strategy Session and I’ll show you how focusing on just a few, high quality setups can change everything.

Click here to reserve your spot.


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Author card Timothy Sykes picture

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

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* 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 (205) 851-0506 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”