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Trading Lessons

How To Stay On The Horse

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Written by Timothy Sykes Reviewed by Jack Kellogg Fact-checked by Ellis Hobbs
Updated 12/11/2024 6 min read
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It’s Tim Sykes here.

Everywhere I go in the market, I hear a similar story …

  • “Tim, you’re the one who introduced me to trading.”
  • “Tim Sykes is the face of day trading”
  • “Love him or hate him, gotta give Tim his props.”

Take a look at the comments under my recent interview with Investors Underground:

Source: YouTube

Over the last two decades, I’ve touched a lot of lives in the market.

But some people are still unable to find success …

I have over 40 millionaire students. And there are countless profitable traders in the Challenge chat. Why do other students seem to fail?

For example … I interviewed with Sam, on Investors Underground and he said that I introduced him to the world of trading.

But Sam isn’t one of my millionaire students … So what happened?

What’s the difference between my millionaire students and other traders who don’t find the same success??

My millionaire students know how to stay on the horse …

Source: TheInstatiableTraveler

Set yourself up for success this week.

Here’s how to stay on the path toward profits:

Millionaire Mindset

© Millionaire Media, LLC

A lot of people aren’t ready to be millionaires.

We can look at lottery winners for proof of this …

  • Lottery winners are more likely to declare bankruptcy within three-to-five years than the average American (CFPBS).
  • Nearly one-third of lottery winners eventually declare bankruptcy (CFPBS).

Let’s say that you made a million dollars overnight, on one trade.

Chances are, you’ll give back most of that money on bad trades trying to grow your account. Because you got rich on a whim. You didn’t learn the process, you got lucky.

It’s not about how much you make. It’s about how much you can keep.

The post below from StocksToTrade reinforces this idea:

Don’t let greed drive the car … You’ll crash every time.

Instead, follow the process.

My students and I use popular patterns to profit off of the biggest stock spikes.

For example, yesterday we watched Chimerix Inc. (NASDAQ: CMRX) spike 290%* after announcing intent to submit Dordaviprone for accelerated approval by the U.S. FDA.

After the premarket spike, my students and I were ready to trade if the chart matched our patterns.

Take a look at the post below:

Source

We see spikers like this every week.

The traders who struggle to find profits … They’re not following my process.

Maybe they got the timing wrong, maybe they bought shares too late or sold too late … Or too early.

There’s a science to this!

New traders will try to promise themselves profits. Instead, try to promise that you’ll follow the science.

The profits will come later.

How To Win This Week

Tim Sykes tosses his book An American Hedge Fund in the Alps
© Millionaire Media, LLC

Start small and focus on taking the meat of the move.

The 290%* spike from CMRX yesterday … I snagged a 9.6% profit.

I’m not trying to get rich off of one trade. I take it one setup at a time and I focus on the patterns.

>> Use my AI trading bot to follow these setups <<

Plus, CMRX never spiked above $4 … Theoretically, you could start with $10!

You’re not going to get rich overnight, so what’s the point of trading with a large position size?

There’s no rush … I’ve been using the same patterns for over two decades. And every week we see new spikers in the market.

There are students making trades right now who started studying months ago.

Think about it like this:

  • Would you rather make $1 million on a whim in the market (and probably give it all away)?

Or …

From my point of view, it’s a pretty easy decision.

But maybe I have a bias after traveling the world for the last two decades. See my post on X below:

You can choose the life that you want.

But you only get one life … So choose carefully.

Cheers.

 

*Past performance does not indicate future results

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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”