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The 6 Essential Steps For Aspiring Top Traders

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Written by Timothy Sykes
Updated 10/31/2023 9 min read

From turning $12,415 into over $7.5 million in trading profits to coaching over 30 students into millionaires– my journey has been anything but ordinary.

At my recent Las Vegas conference, amidst a sea of hungry and eager traders, a moment of clarity struck me.

It’s not just about money or strategies…

It’s the fire in your belly that truly defines success.

Inspired by those transformations, here are six pivotal steps that every aspiring trader must embrace.

And as always, these are lessons from the trenches…the real deal on what it takes to reach the pinnacle of trading success.

Step #1: Discover Your Passion In Trading

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To outsiders trading is always jam-packed with excitement and opportunities to make unthinkable amounts of money.

And while that can be true at times…most of the time trading is boring. It can also be stressful, frustrating, and mentally draining.

That’s why you must develop an unrelenting passion if you want to get through the difficult times.

Ask yourself…

What aspects of trading excite you the most?

Is it the fact that you can set your own hours…or there is no cap on how much you can potentially earn? Or that the markets are constantly changing, requiring you to keep up by studying and learning?

In addition, you want to narrow your focus at first. Pick one area of trading or one setup that appeals to you the most. Trying to do too many things at once can be a recipe for disaster.


Step #2: Embrace the Process

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Imagine entering a marathon without any experience and expecting to break a world record in your first race.

I know…it sounds crazy, right?

Well, what’s also crazy is that some newbies expect to make money right away when they first start trading.

The truth is, even my best students struggled their first and second year to make money.

That’s why I always tell my new students not to focus on profits in the early stages of their journey.

Instead I want them to focus on:

Dedication– Commit to continuous learning and improvement.

Patience– Understand that mastery takes time.

Resilience– Be prepared to face setbacks and learn from them.

Step #3:  Set Realistic Goals and Milestones

Millioniare Mentor Update Avoid the Slippery Slope
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Goal setting is crucial, but it’s equally important to be realistic.

For example, you might want to make a certain amount of money per month from trading…

However, you can’t control the market and what opportunities there will be.

That’s why having monetary goals isn’t that great.

On the other hand, process goals are things you can control.

For example, one goal might be to honor your trading plan. Or stick to your risk management rules.

Stick to process goals over profit goals and you’ll be surprised at the outcome.

In addition, try to break your goals into achievable milestones. Not to mention, celebrate each small victory…after all…it’s part of your growth.

As you advance so will your goals…make sure they align with your learning curve.


Step #4: Balance Risk and Reward

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

Understanding and managing risk is non-negotiable.

  • Never risk more than you can afford to lose.
  • Learn to identify when a trade aligns with your risk tolerance
  • Preserving capital is as important as making profits
  • Your losers should be smaller than your winners

And of course, always remember my number one trading rule, and that’s cut losses quickly.

Step #5: Foster a Community

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I believe when it comes to trading, you should be self-sufficient and trade your own ideas.

However, when it comes to learning and developing your skills…nothing beats being part of a community.

Being part of a community allows you to share experiences, strategies, and insights.

Not only that, but you can learn from others’ successes and mistakes.

When I make a boneheaded trade, I don’t delete my posts, or sweep them under the rug. I make videos about them to show my students what not to do. I want my students to know that you don’t have to be perfect all the time to make money…and that even top traders struggle from time to time.

Being part of a community allows you to get support and motivation.

Step #6: Maintain A Work-Life Balance

Believe it or not…I’m not one of those mentors that believes that you need to eat, sleep, and breathe trading to be successful.

Yes, I want you to study your butt off and make sacrifices.

However, it should not be at a point that puts your mental and physical health in danger.

Not only do I love teaching…but I’m passionate about charity, and giving back.

Now, I’m not saying you should get into charity…but I don’t want trading to be your entire life.

Take breaks, indulge in hobbies, and spend time with loved ones.

If you can do that, you’ll be surprised at how a well-balanced life can enhance trading performance.

Are You Ready For The Challenge?

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The path to trading success isn’t just about crunching numbers or following trends. It’s a fusion of passion, strategy, and balanced living, something I’ve lived and breathed through my entire career.

📊 In our upcoming live training, we’re not just talking strategies – we’re diving into the heart of successful trading.

🔍 Witness as I unravel the real secrets behind my 6 steps to success, giving you a front-row seat to the mindset and tactics that have created millionaires.

🔥 From igniting your trading passion to balancing life beyond the markets, learn how these critical steps can redefine your trading experience.

💡 Whether you’re a newbie or a seasoned trader, this session is crafted to offer insights that can pivot your journey towards greater fulfillment and success.

🚀 Don’t just trade – excel. Master the art of trading with a perspective that goes beyond the conventional.

Are you ready to embark on a trading journey that’s not only profitable but also deeply rewarding?

Your opportunity to join the ranks of my most successful students is just a click away.

👉 Secure your spot in this transformative live training session NOW! 👈

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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. Read More

* 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”