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3 Things I Just Told All Of My Students

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Written by Timothy Sykes
Updated 11/1/2023 6 min read

Picture this: You can go to the gym, meet your friends for lunch, hang out with your family…

While being able to nail most of the best plays in the market every single day!

I know it may sound crazy, but none of you need to spend countless hours in front of the monitor to be successful…

In fact, the less the better!

Today, I’m going to share with you three things I just reminded all of my students about to help them relax after a stressful October…

Here’s what I said!

Finding The Right Balance

Most individuals think trading revolves around sitting in front of your screen all hours of the day…

That is FALSE.

I tell every student who joins my challenge that they have to learn to balance their life and trading…

I’m not one of those mentors who believe you need to eat, breathe, and sleep trading to be my next millionaire student…

And yes, I tell you to make sure you’re studying butt off…

But I don’t want you to jeopardize your overall health.

There’s a reason why I tell all of my students to focus on these early-morning runners…

Because that’s when we tend to see some of the best opportunities.

If you’re a trader who thinks you need to be watching the market all hours of the day to be successful…

You may want to think again and let me show you why that is.

Focusing On The Right Plays

If you go back and look at all of my trades, the majority of them happen early in the morning…

And the reason for that is because that’s where I typically find the most volatility and best setups for me to take advantage of.

Every morning I review my watchlist which consists of previous trades of mine, big percent gainers that I may have missed out on, or even StocksToTrade Breaking News Alerts…

I want to make sure I’m fully prepared to take advantage of whatever the market throws my way.

Yesterday morning I traded MSP Recovery, Inc. (NASDAQ: LIFW)…

I’m sure most of you are thinking, “This stock again…”

I’m sorry if that’s boring to you, but the thing with penny stocks is that they can give you multiple trading opportunities.

Looking back at LIFW, you can see it spiked higher back in September…

Source: StocksToTrade

And over the last several days, it keeps creeping up higher and higher…

This stock was on top of my list to watch, along with a few other plays that I alerted my students about early in the morning…

Preparation is key, that’s why I’m always alerting my students about some of the biggest percent gainers I’m closely watching.

Now, let’s break down LIFW to give you a better understanding of why I alerted my students.

In the chart below, you can see LIFW continuing to run higher during the pre-market hours…

Source: StocksToTrade

And when the market opened, I was looking for LIFW to break through its pre-market highs.

Within just a few minutes, it did exactly that, that’s when I decided to buy LIFW at $2.88 to see if it could continue higher, breaking through that $3 resistance level.

Source: StocksToTrade

Once I saw LIFW break out above $3, I focused on Level 2 and saw the short sellers start to take over…

So I knew that break-out was weak and I shouldn’t overstay my welcome.

I then exited my trade at $3.09 for a 7.29% profit.  (Risked $5,328)

You need to start looking to make those quick trades, because if I got greedy and tried to hold on for just a few minutes longer…

More Breaking News

That early morning winner would’ve instantly turned into a loser, and that’s where the majority of traders struggle.

Risk Vs Reward

Now’s not the time to be overly aggressive with your trades…

Even though we’re seeing some amazing opportunities, it’s not like 2020 and 2021.

The name of the game has always been: live to fight another day.

Most newbies don’t understand that, and they fail to manage their risk and they wonder why they’ve blown up their account in such a short period.

If you want to be successful with trading, managing your risk isn’t something you can let slide…

So remember the following:

  • Don’t risk more than you can afford to lose
  • Cut losses quickly to keep your profits safe
  • Know your entry and exit points to identify your risk-to-reward ratio

Enjoy The Journey

We’re all on this journey together, and I want you to remember that this is a marathon, not a sprint…

So enjoy every moment of it.

I get it, we all want to make as much money as quickly as possible, but if it was that easy, everyone would be doing it.

I want you to understand the process…

That’s why I continue to share as much information as possible with you daily.

As you continue on your journey, remember that patience is going to be key…

And always look to enhance your process every chance you get.

So are you ready to elevate your trading game and improve your overall understanding of how this market works?

Make sure you reserve your spot today to see how you can be better prepared for the days ahead. 

Stay safe and I’ll see you in chat.

-Tim

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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.
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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 (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”