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(we’ve also had the whole webinar transcribed below for my valued deaf students!)
All right. Tim Sykes here and I’m very excited about this webinar. I just want to welcome you to my life and this webinar, which will feature 35 stock market hacks that have made me millions of dollars and allowed me to live a life that I only dreamed of. I’ve also done this while visiting over a hundred plus countries, so it’s been pretty crazy.
So what are we going to cover today? Well, there’s 35 stock market trading strategies that have made me a millionaire. They’re very simplistic, but they’re not very well-known. And that is my job today to convey all of this to you. And also I’m going to teach you how to be profitable in such an unstable economy. I’ll also be announcing a brand new TV show. I’ve done a lot of stuff with TV, but I have a very exciting opportunity for you, and a few lucky people from this webinar will be selected to be on the show with me. And the details will be toward the end of the webinar. But, first, we have to actually learn and listen to see if you can qualify.
So how do you get your hands on my newest trading software as my gift to you? That is another thing that we’ll be covering today, right now. So are you ready? Let’s get started. Why are you here? Well, maybe you want to know exactly how I’ve made over $4.3 million in profits trading stocks**. Maybe you’re passionate about turning your dreams into reality. Maybe you want to leverage your time for maximum results. Maybe you know there’s more to life than just a desk job and the rat race. Maybe because some of you won’t be happy in life making just $40,000 a year without the hope of retiring.
Here is the Reader’s Digest version of who I am. This was an article written about me a little while ago, and it’s titled How a High School Senior Turned $12,000 into $4.3 Million from Trading Stocks Online. And there’s a picture of me on a private jet with some of my money, my beautiful fiancée and I in Positano, Italy, and my Ferrari. So I just want to show you a little bit about who I am, and what I’ve accomplished.
I also have a loud mouth as you’ll be able to see by the end of this webinar. I’ve been interviewed by a whole bunch of different media sources. I met the legend himself, Larry King, a few months ago. Steve Harvey interviewed me just a few weeks ago, and I was also on Fox with Neil Cavuto, and on CNN and Fox & Friends. It’s not just about having a loud mouth. It’s actually about bringing value and bringing knowledge to the conversations. So I share my knowledge with everybody, and I’m proud to do it.
The proof is in the media. Tim G. was featured with me on CNNMoney after he took $1500 and turned it into over $6 million. And understand that results will vary. He started with just $1500. I have students who start with $2,000 or $5,000 or $10,000. That is the beauty of this. It’s not going to be for everybody but it is possible. And Tim G. proves that.
Again, remember, results will vary. I’m not saying that everybody’s going to make $1.6 million, but Michael G. has. And I’m probably even prouder of the fact that he hated me at first and didn’t believe me. I get that reaction a lot in the beginning. It’s not crazy. I don’t take it personally, but after you learn what I teach you, you will believe. And that is the beauty of being real.
So where are you starting from? Have you ever traded before? Are you profitable? Are you new to the markets? No trader is ever, ever 100% right. But my question to you is, are you willing to take risks? Are you ready to find out what successful traders know? A lot of people think that it’s just, oh, win or fail, right? It’s easy. You’re either going to succeed or you’re going to lose. What successful people know is that to get to the absolute victory, to get the millions of dollars, you have to make a lot of mistakes at first. You have to fail, fail, fail a little bit here or there, learn what not to do, so that eventually you learn what to do. It’s not simple but the journey is worthwhile.
So regardless of your skill level, I don’t care if you’re a beginner, intermediate, or even advanced, you are in the right place because I teach everybody. I have students now if over 80 countries. And I’m very proud of being a teacher and I’ve actually gotten better at being a teacher over the past few years. So let’s talk about how I did it. How have I made over $4 million** and what are these 35 stock market growth hacks that I use daily?
Well, first of all, you have to understand my whole perception of the stock market. The stock market, the financial markets, Wall Street, these are huge, huge industries. I’d like to bring it down very small like a sniper. Aim small, miss small just like snipers do. Get very specific with your trading. I’m not saying that you have to learn how to conquer all of Wall Street and become a billionaire, okay?
This is not CNBC where you’re going to win 30%-40% of the time. My top students and I win 60%-70%-80% of the time**, because we are very specific and we take very close sniper-like shots. What you have to do is find your niche, and my niche is penny-stocking. I know that penny stocks get a bad rap, but it’s just because there’s a lot of misinformation out there. I aim to clear that up. And actually you can make money when penny stocks go down.
I know that’s confusing to a lot of you, but the point is is that number 35, the first growth hack that I’m going to teach you today, is that I trade small cap stocks, better known as penny stocks. They are easier than larger companies that are more boring and efficiently priced. Let me explain that. If you’re ever looking at GE or Amazon or Google, these well-known companies that are talked about on CNBC and in the mass media all the time, they might have one new product but they already have thousands of products. So any new product that they come out with, the stock might go up 1% or 2%, not very much. With penny stocks, these whole companies only have one or two products to their name. So if they come out with a new product, the stock can go up 50% or 100% very quickly in a day or two. So it’s much more volatile.
And here’s my tip number 34, and we’re going to count it down all the way to number one. But number 34, in my opinion, penny stocks are the ideal for the average trader. They are very volatile, okay, which makes it very ideal for small accounts. At first, I started with $12,000 and my accounts weren’t growing at all. I was investing in big companies, and my account would go from like 12,100 to 11,900. And for several months, my account didn’t do much. When I started gravitating towards lower-priced stocks, that’s when in my first year, I went from 12,000 to over $100,000. You can’t do that with big companies.
Tip number 33, even though I’m a millionaire, I am grateful for every single dollar that I make, and more importantly the whole journey, including the losses. Because I don’t want you to think that I’m winning 100% of the time and that I’ve never had losses. I’ve had big losses; 10,000, 50,000, $100,000. In fact, I actually lost $500,000 on one trade that I’ll talk about in a little bit, but I’m grateful for it all because it has made me the trader and the teacher that I am today. And you need to have losses. You need to have mistakes. It makes you a whole person. Ideally you can control the losses, though.
Tip number32, small gains add up over time. Don’t go for home runs. Go for singles, okay? You can call me Ichiro if you’re a baseball fan. I have a lot of singles. My total profit gain is now $4.39 million. However it took 3,796 trades to get there. Just think about that for a little bit. A lot of people think that you have to make a million dollars at one trade, that you’re going to find the next Facebook. Trust me, you’re not. The odds are that you’re not going to do that. So, for me, I want to take singles because they’re higher odds. And I’ll explain what that means in a few charts when you see it in the set.
Tip number 31, too many people are trained to believe in a 9 to 5 job with a constant paycheck, and the stock market doesn’t reward your time that you put in. It rewards knowledge and strategy. Some of my most profitable trades only took a few hours. And also I should tell you about that 9 to 5 job that you think is so constant. Guess what? You might be working 5, 10, 20 years at the same company. And without any warning, not due to anything that you did, that company might fire you and you will be without your 9 to 5 job.
So you’re very reliant on something that you have no control over. With the stock market, with trading, it’s all about you. And the more that you do in terms of studying and strategy and preparation, the better off you’ll do. And then some days you don’t even have to work. You don’t have to call in sick. You don’t have a boss. You don’t have a cubicle. It’s freedom. So think about that when you want that constant paycheck that pays so little. Don’t even get me started.
Tip number 30, losses are not bad if you can contain them and learn from them. They are an essential part of your education. As I said, I do not win 100% of the time. If you actually look at my trades over the past nearly two decades now, I’m winning roughly 74% of the time**. Not bad, much better than any bald people on CNBC, or anybody on CNBC for that matter, roughly double their winning percentage. But not 100% of the time. So for me, I have to be prepared that I can be wrong. We are all human. Nobody is perfect. It’s okay. But part of what I teach, and part of the essential part of the education that I provide is how to react to losses; how to contain them, how to manage them, and how to use them to get better over time.
Tip number 29, 70% of investors fail to beat the major stock market indices every single year. And 90-95% of traders lose money. It is due to wanting action and playing guessing games, not strategizing, not trading like a sniper, and treating every trade like a business. I don’t want action. I don’t want to play guessing games. If there’s a stock and I don’t know the industry, or I don’t know what’s going to happen, I don’t trade it, okay? The problem is, is that most people, again, try to conquer everything with Wall Street. They think that they know every industry, every stock, and they’re smarter than everyone.
I realize I’m not that smart, and that’s okay. And that’s why this is realistic, and I don’t promote some B.S. unrealistic strategy. I accept the fact that this is a game where most traders fail to beat the overall stock market, or they even lose. So I have to be very, very specific, very, very strategic in every single trade I do. It is not for fun. It’s not because I’m bored. It’s because I want to profit from that trade. So think about that. I am here to help, okay? A few of you will trade alongside me, watch my screen, and learn from every single move that I make. I will show you how that’s possible here in a bit.
But I just wanted to show you this picture. I actually have great Wi-Fi internet right here. This is me in the Maldives on the sunset, on the beach. I love it, okay? This is what I want for you. I want you to have an office like this. No cubicle, no boss, no specific time frame where you have to work 9 to 5. Look at my ugly sunglass tan in this picture. I’m out all day getting sun. And then I work a little bit when there’s an opportunity, only when there’s a good opportunity. Not every single day, not every single hour. I am not a slave to my job, and I don’t want you to be one either.
So tip number 28, I am never 100% certain about any stock. This is not about illegal inside information. I use my experience and my knowledge so that I trade predictable patterns that I have always focused on for nearly 20 years now. Every single trade is new and different. But the patterns don’t trade much because human nature doesn’t change. Here are three different charts of three different penny stocks over many different days. And yet, you can clearly see that the pattern is nearly identical. They are in totally different industries. They have nothing to do with one another, and yet the patterns are nearly identical.
I want to repeat this, to ingrain this in your mind, because I see these patterns again and again and again. And it’s all based on human nature. So if you can learn the basic patterns, it’s not always going to be exact, not the exact same stock prices or the exact same days or patterns, but for the vast majority of the time, it’s pretty much the same. And that is where the profits come from, predictability.
Tip number 27, I will never try to catch the exact bottom or the exact top of any stock move. In fact, I usually only profit from roughly one third or one-half of the move, selling too quick or selling too late. Perfect timing is a myth. Focus on growing your overall net worth, not perfection. And I know this is tough for a lot of people, because they’re like, “Hey, but you’ve made millions. Your students are making millions from a few thousand**. There has to be something that you’re doing, like catching the stock perfectly.” No, we’re learning to take the meat of the move. I know it’s tough to believe, but very rarely will you ever see me catch the exact bottom or the exact top on a trade. All I’m trying to do is use every single trade to grow my overall net worth. Slow and steady wins the race.
Tip number 26, recognize that you can go long and short. You do not have to be bullish all the time. Let me repeat that because this is a very revolutionary concept for a lot of people, sadly. You do not have to be bullish all the time. In other words, it doesn’t matter if the market is up or down, I find opportunities in all markets. This is probably one of the best things about my strategy. I know the money is nice, the freedom is nice, the geographical freedom is nice, but also, I’m not only making money in bull markets like most people do. I make actually more money in bare markets. I make money in bull markets, too. But I am not biased like the vast majority of people are. And that gives me a huge advantage, especially over time.
Because over the course of your lives, you’re going to have the markets going up and down a lot. I don’t want you to have to take one or two or three or sometimes even five or ten years off if we have a great depression, where there’s no opportunities. If we have a great depression, most people will be out of work. Most people will be depressed. I, on the other hand, my students, on the other hand, we will be trading the same old opportunities that pop up in every bare market. It’s kind of cool. I hope that there’s no great depression, and I don’t think that there’s going to be. But if there was, my strategy is fine. That’s the coolest thing here.
Tip number 25, my top students and I are wrong often, but we cut losses quickly. We do not let small mistakes turn into big disasters. As I said, I’m winning roughly 74% of the time**. So 26% of the time, I am wrong. But that 26% of the time, my losses are much smaller than my gains. So even though I’m winning more often than I’m losing, my gains are also bigger than my losses. So it’s very difficult, given my discipline to not make money over time. Because I’m winning more of the time, percentage-wise, and I’m winning more dollar-wise. So think about that for a second.
Number 24, this one is one of my favorites. I only trade gimme-setups, okay? One of my haters actually sent me an email one time, and he said, “You know what? You only trade the easy patterns. Let me know when you want to be a man and you trade the difficult patterns.” And I just responded, “LOL,” because, yeah, I trade gimme patterns. That’s not a bad thing. This isn’t like Olympic diving here, where there’s judges that are going to rank me based on the degree of difficulty here, okay? I trade easy setups. They make less money than most people on Wall Street.
To people on Wall Street, making a few million dollars is small time. I know, and most of my friends and most of my students are very happy with just a, quote, a few million dollars. So I trade the gimme-setups, and I am very proud of that. So my question to you is, do you think that you can memorize these, quote, gimme patterns and follow my, quote, gimme rules? I don’t know. You tell me.
So let me tell you a little bit more about my favorite gimme patterns. Buying breakouts, this is tip number 23. If you look on this chart, you can clearly see that this stock, it doesn’t even matter what the stock is, but in this case, the stock bumped up at around $37 a share, and it bumped up against that, quote resistance. And it failed, twice. But the third time was the charm. Once it broke 37, it went to the 40s. That is a breakout. That is what I like to do.
I like to look at charts and see where it’s had problems in the past, whether it’s over the past two months or six months or year. I look at these former resistance levels, and I simply wait for the breakout levels. I know this is a gimme pattern, and people on Wall Street, if this was an Olympic diving competition, this would be voted like 1.0 out of 10 for degree of difficulty. But for me, I don’t care about degree of difficulty. I care about degree of reliability and degree of predictability. In a breakout, especially if there’s the right catalyst and the right news, as we’ll talk about in a second. This gives me profits the vast majority of the time. So yes, I buy breakouts.
The power of buying breakouts, I want to give you an example. I was on this $12 million yacht a little while ago, okay? With my students, I actually treated several of my top challenge students to a free yacht trip in the British Virgin Islands, and we were using my revolutionary new software called StocksToTrade, which is a software indicator, and I’ll tell you more about that in a little bit. But here is a student, his name is Blake. He was actually using StocksToTrade, and he discovered some news on this company. The taker symbol was EKSO. And we’re aboard this yacht, and the wi-fi’s not good, and it’s an amazing time. We’re not trading that much. We’re having fun on this $12 million yacht.
But he spotted this because of the software and it was a breakout. As you can see by this chart, the stock was breaking out from the threes and the fours, and I bought a position at roughly $5 a share. And the next day, it was up to the sevens. Now granted, not every stock is going to breakout perfectly like this. I actually sold, and I make $70,000**. But I sold too soon. Because it actually nearly hit $8 a share. So I left around $100,000 on the table. But I still make $70,000 from a yacht in the British Virgin Islands with very bad Wi-Fi because I recognized the breakout and this company had good, positive news that I like to buy with.
And my software, StocksToTrade, alerted us, and that’s, in a nutshell, what I do. It doesn’t matter where I am. Whether I’m on a beach in the Maldives or on a yacht in the British Virgin Islands. I’ve been to over a hundred countries, and I’ve traded in every single one of them because I have the patterns, and I have the software, and I’m prepared. And that’s what I want for you, wherever you are in the world. I don’t just have students in America. I have students worldwide.
So here is tip number 22, shorting breakdowns. Here’s another chart, and I just want to show you, you can see a clear line here where every time this stock drops, right at that line, it bounced. You can see it a few times. But, actually, in this case, it was the fourth time when it finally broke down below that line. So breakouts are on the way up, breakdowns are on the way down. But the fourth time, when it finally broke, that’s what led to lower levels. So for me, I’m looking for breakouts on the way up, and I’m looking for breakdowns on the way down. And yes, you can short sell.
That means you can bet against the stock. You take a negative position; I know it sounds scary. But I’ll teach more about that. And you take a negative position, and you profit as the stock goes down in price. But you have to wait for a successful breakdown. You cannot just short at any time. Shorting is very dangerous. Trading is very dangerous. So I wait for my indicator and then I act. If the indicator does not go off, I do not act. I know that is very difficult because a lot of guys are very trigger happy but again, think of yourself like a sniper, okay, until you have the perfect shot, you do not take it.
Here’s another example. I actually made $70,000 on this one too, actually just a few weeks after the EKSO trade, and this is very addictive. So I want you to be careful because CNTO was actually a blatant pump and dump. So for me, I like the short stocks that have technical breakdowns, yes, but also, that are kind of like these sketchy companies. The companies that you’ve seen featured in the movies like Wolf of Wall Street or Boiler Room, okay.
These are not real companies. They only rise because they’re being telemarketed and promoted on the phone to financial naïve investors. But once the insiders have sold out, once they’ve pumped up the stock enough, there’s no more reason to market the stock. So what happens is the stock falls out of bed, and it crashes very quickly, as you can see here, with CNTO.
And I shorted because this stock had broken down. It was the first down day, the first red day after it was already up for several days in a row. So for me, I like shorting the first down day. And when that happens, that is a great, great sign that this can really crash. And on this one, again I took a $70,000 profit, roughly, and I covered too soon as it turned out, because a few days later, this would have been over a $200,000 profit. As I said, I usually capture a third or a half of the overall profits. So for me, making $70,000 in a few days is not a bad day**.
But at the same time, I know that I can do better. And that’s why I teach, frankly. Because I know that even though I’ve made over $4 million, many of my students are on the path to making much more**. They capture more of the move, and that’s fine.
Number 21, sometimes I like to dip-buy when support holds. Here’s the chart, and you can see these little blue arrows every single time this stock, which is Amazon. I normally wouldn’t trade this, but this is a good chart that I wanted to show you. You can draw a flat line here, and you can see that this stock had massive, massive support at it looks like around $61-61 a share. So every time it got there, it pretty much bounced and went higher.
So sometimes, I like to dip-buy stocks when they hold support like this, for the bounce. It’s not necessarily because they’re going to break out huge, just because it’s very low risk buying when a stock is near the lows, and it looks like it’s going to hold the lows. But I do have to give you a word of warning here. Dip-buying, when support holds, has specific risks built in.
Here’s a chart of another stock where you can see it was actually trying to base around 24, 25, 26 cents a share. And it bounced off it a few times, but then all the way at the right-hand side of this chart you see that it actually cracked support and cracked very quickly. So if you are going to dip-buy support, you have to make sure that support holds. So when I am dip-buying, I am very, very, very careful that if support breaks, that is my risk, and I get out immediately.
If you do not have a plan before you get in, if you’re just like, “Oh, I’m just going to buy this stock. It looks like it bounces every time.” No, that is not the right way. What you have to do is you have to say, “This stock might crack through support.” And if it does, you need a plan. But if you have a plan, it’s not that scary. Sometimes I’m wrong, and I cut losses quickly. It’s not the end of the world.
So here is an actionable trade idea that you could use right after the webinar. I want you to see the five biggest percent gainers under $10 a share from the past day, and look and see what news caused the move. You can find the biggest percent gainers on pretty much any financial website. I use Yahoo Finance, for example. And on Yahoo Finance’s homepage, you can look at biggest percent gainers and biggest percent losers.
I only look at the biggest percent gainers. I want to see what are the hottest stocks in the stock market right now. Also, if their news is based on solid earnings or a contract or a partnership with a big company, then it’s a potential buy, if that is what caused the big percent gain. If the big percent gain is caused by a paid promotion or media mention, it’s a potential short. Because that kind of a catalyst does not last.
As I talked about, Wolf of Wall Street, the insiders are only looking to pump up the stocks for so long so that they can get out. Once they get out, there’s no more promotion and the stocks crash. Definitely watch the movie Boiler Room if you haven’t seen it. So for me, every new paid promotion that is going on with a boiler room, and they still exist to this day. Or if it’s even up on email promotion, it’s not just telemarketing anymore. Sometimes a company will have 50 different promoters sending out email blasts promoting it. If that happens, it’s still a potential short, because those are very temporary catalysts, as opposed to good earnings or a contract with a big company.
If it’s anything else, just don’t touch it. A lot of people tell me, “Hey, what do you think about this stock, Tim? What do you think about this stock?” And it doesn’t fit any of my key patterns. So again, as I mentioned early on in this webinar, if you do not have a gimme pattern, if you do not have the right news, then you are not acting like a sniper. For me, I wait for the stocks to come to me. I wait for the perfect setups to come to me. If it’s anything else that is out of the ordinary for me, I simply do not touch it.
Now I know that’s tough, because there’s so many different stocks moving every single day. But if you can do this, you will have great success. You have to be disciplined. That is what I teach. Also, I like to buy the breakout the next day over the previous day’s high. I’m not just going to invest in any stock. I want to combine the news catalyst with a chart catalyst, and very similarly, I want to short the breakdown the next day, below the previous day’s low.
I keep it very simple. All I’m doing is buying breakouts over two days with a good catalyst or shorting breakdowns on a two-day low with a negative catalyst or a temporary catalyst. That’s how simple I keep it. But also know that when you’re shorting, you have to actually borrow the shares ahead of time. So sometimes you have to be early and anticipate a crash or collapse. But if you’re shorting a blatant pump and dump, these things can really drop 20, 30, 40, 50, 60% in a day. So for me, it’s worth the risk.
Number 19, K.I.S.S. – keep it simple stupid, and as Leonardo De Vinci said, “Simplicity is the ultimate sophistication.” Now again, a lot of people will look down on my strategy. They look down on penny stocks. For me, I don’t care what you look down on or look up to. I just want to make money, and keeping patterns simple, keeping news simple, keeping catalysts simple works the best for me. I know that there’s a whole bunch of advanced indicators with RSI and Bollinger Bands, and Fibonacci retracements. None of that stuff has been very reliable for me. I’ve tried it all, but I only teach you the stuff that works the best, and I’ve been experimenting for nearly two decades now.
So my question to you is, do you want freedom, or do you want prison? ON the left you have me. This is my laptop. I only work with one laptop. This was me just a few months ago in Portofino, Italy, and I was working in the shade, beautiful view, with my laptop. I made a few thousand dollars on the day with that view. That was my office.
Or on the right-hand side here, you have what a lot of traders have, especially on Wall Street, where they have 3, 4, 5, 6, 10 monitors, and they’re looking at all these different stocks, and they’re trying to make a little here and make a little there. What do you choose? Do you want a big bank of computers? I know some people who would actually prefer that. For me, I want to travel the world. I’m a travel addict. I want freedom. And this is my office.
So number 18, it’s easy to focus on the potential rewards, but what happens if the stock doesn’t go your way? What’s your plan? Or will you be like most, and freeze like a deer in headlights? As I mentioned just a few slides ago, sometimes I dip-buy at technical support, but that has built-in risk management. If I’m dip-buying at a very specific level, then I expect that specific level to hold. No matter what the news is, no matter what stock it is, I expect that specific support level to hold. And if it does not, which I’m okay with, I cut losses quickly.
The sad thing, though, is that many people will add to their position and they’ll say, “Oh, maybe it’ll come back.” And they will hold and they will hope. Holding is not a strategy. Hope is not a strategy. Sometimes it will work, and sometimes the stock will fall below support and then come back and go up. And they’ll be like, “Ha-ha Tim. I told you I didn’t have to take that small loss.” And yet, the majority of time, they will lose more. So why risk a big disaster when you can cut losses small.
Number 17, you do not have to trade every day. Wait for the best setups. They will make you rich. This is so, so, so important. A lot of people think, “Okay, I’m ready for this, Tim. I want to do this. I’m ready right now. Let’s trade every day. I’m ready to go.” That is not necessarily going to make you the most money. Having the right perspective will. Sometimes taking a day off when there’s no great trade is actually the best thing to do. Sometimes the best trade is to not trade at all. Having no positions is an option. It’s just not an option for people who are degenerate gamblers who want action all the time. Don’t be that way.
Number 16, never, never, never, never feel uncomfortable in any trade or investment. If it’s not doing what you want, just get out. I have a lot of students and a lot of people say, “Oh, Tim. I want to get into this but it’s scary. I don’t know how much to risk. I don’t want to lose any money.” Listen, many of my best students don’t even trade right away. They’re just learning, okay? This is not something that you’re supposed to hate. This is something that you’re supposed to love because you have enough preparation. And ideally you’re trading reliable patterns. If you’re trading something and you’re uncomfortable, just get out. You can always get out. That’s the beauty of trading, okay?
This is not like real estate investing where you buy a house, and you’re just screwed if the market falls out below you. I know so many people in real estate where they’ve just lost so much money because the market is not liquid. If you don’t like a house, there’s nothing you can do. With trading stocks, because I’m trading actively traded stocks, you can get in and out very quickly within seconds.
Number 15, always live to trade another day. There will be new trade opportunities around the corner, guaranteed, every few days, sometimes every few weeks, sometimes every day. But you have to be around to be able to capture it. I never want you to go all in on any stock, and risk disaster and potentially not be there in the future for when there is a better opportunity. So part of my success is just being there. No matter where I am, no matter when I travel, I’m always prepared looking for my plays. That’s not to say that I am a slave to my computer and I need to trade, but I check in every now and then and I recognize what is paying the bills to allow me to travel all over the world. So be very patient. There’s always new opportunities.
Number 14, my goal is to make between 20% and 50% within a few hours or days. I know that sounds crazy to those outside my niche since big companies only go up or down 20% or 50% over several years. But that is why my penny stock niche is better. There is much more volatility as long as you’re prepared and you have rules. And even if I don’t capture it all…again, I never capture all of the move. I aim to take the meat of the move. So oftentimes you’ll see me make 5%, 10%, 15% gains, which I’m fine with. It’s all right not to capture the whole move.
Number 13, I’ve become a better trader and teacher over time. You learn what works best, and you optimize and you go with that. It is key to track how your strategies and various patterns perform. The only reason that I know about buying breakouts and breakdowns so well is because I’ve looked at it and I see that these work best. We’re all different people, though, so we all don’t trade the same way. I want you to tailor your trading to your personality and focus on what you’re best at. Some people only want to hold stocks for a few minutes. Some people want to hold stocks for a few hours or a few days. There’s no one right way to make a lot of money. It’s all about you. The stock market and trading stocks can be tailored to your preferences.
Number 12, use a trade journal. Keep track of your trades; the good, the bad, the ugly. That is the key to making you a better trader. Use a paper and pen. Use an Excel spreadsheet or use Profit.ly. Profit.ly is a website where you can post your trades and keep track of your trading record along with notes, too. But this is all about being very meticulous with what makes you money, and learn to focus on what makes you money, and look at the patterns and look at the trades that don’t make you money or that make you uncomfortable and leave those aside. You have to learn how to optimize over time.
Number 11, if you’re going to set goals, be sure to make them count. Here is a letter I got from President Obama a few years ago, and I went to the White House and met with members of his administration. I was one of these young entrepreneurs, and he recognized me, and the White House recognized me. And that was one of my goals form the get go. When I started teaching, I was like, “You know what? I want to be a real teacher. There’s not that many teachers in finance. There’s not that many teachers online who really care about their students and really care about actually creating knowledge and transferring it to anybody. But that was one of my goals, so this was a big honor when I got recognized.
Number 10, when there’s no great setup, I do not need to trade every day, and my mindset is that of a retired trader. I will only come out of retirement when a trade is so good that I would actually feel guilty missing it. I want you to look at my student Mark Cook, who just passed $500,000 in profits, okay? Eighty percent of his profits come from just six percent of his trades.
Number 9, never follow anyone else’s alerts, not even mine. Use mine only as lessons on the entries and the exits. Use all the information that you can of traders and publicly listed research for you to craft your own plan and make the best strategy that you can on your own. I have several millionaire students, but more important than the money, they are all self-sufficient because of the way that I teach. My trades are not to be followed, just learned from.
I want you to be self-sufficient. I don’t want you to ever have to rely on me or anybody else. I’m just training wheels. My team and I, we’re training wheels in the beginning. We’ll help guide you. We’ll try and get you on the right path. We’ll give you a little push on your butt. But at the same time, we know that all of my most successful students can trade completely on their own after a few years. And that’s a beautiful thing.
So, we are in the second biggest bull run of all time. It’s good to see where we are in history because I think that trading is going to get harder over the next few years. The easy money will soon be over. So that gives you everything that you need to think of right now, to get in on this now, while there’s still easy money. And get prepared for when it’s going to be harder money in the next few years.
Number 8. Again, I don’t care whether this market is a bull or a bare, most stocks follow the market. I only trade volatile outliers, and I am prepared in all markets. I’m even more aggressive on my longs in bull markets, but I’m also more aggressive on my shorts in bare markets. It’s good to have a well-rounded strategy. Far too many people do not. I know that I touched on this before, but I really wanted to reinforce this.
Picture a tennis player with a forehand and a backhand, right. I was a tennis player growing up. Before I had my big run as a stock trader, I was a tennis player. My dad calls it the million-dollar injury when I had surgery on my arm. That’s what got me into trading. But in tennis, you need to have a good forehand and a good backhand. If there’s an opponent who only has a good forehand, of course I’m going to hit it to his backhand every single time and exploit his weakness. I don’t want you to have a weakness. The stock market does not care about you. Wall Street does not care about you. It is your job to be as strong and show no weakness. Show no mercy. That is the key to success.
So number 7, you need to short-sell stocks, okay. Shorting stocks can be very predictable. And you ask me, “Why?” Because the majority of penny stocks will eventually fail. This is another beautiful point as to why my niche is better than big companies, and a lot of people don’t realize this but if you’re trading a company like Intel or GE or Apple or Facebook, you don’t know how that company is going to do 3, 4, 5, 10 years from now. You don’t know what the next social network is going to be. If they’re going to take over Facebook or maybe Facebook will buy them. It’s a guessing game.
With penny stocks, because these are such low-priced companies, almost all of them will fail. It’s like a 99% probability. Maybe even 99.9% if you want to get really technical. So knowing that, you can work your way backwards and see when they might fail, or see when might be a good time to bet against the stock. So shorting…let me just give you a basic overview.
A lot of people think that you can only make money on the way up. You want to buy a stock at $2 a share, and sell it at $10 a share. You got an $8 a share profit, right. Ten minus two, but pretend that you find a stock that you think is going to crash, a company that you think is going to fail. And you short-sell that stock at $12 a share and you buy it back at $4 a share. Well, 12 minus 4 is still $8 a share, okay. You’re just selling it before you buy it. Normally, you want to buy low, sell high. Well, that’s what short-selling is. Except you’re selling high, and then buying low. It is the reverse chronology.
And I know that screws people up in the head, but trust me. I’ve made millions of dollars short-selling. So if you know that the penny stock is going to fail, and for whatever reason the stock gets pumped up…in this example, NXTH, you can see all on the left-hand side of this chart, all those little white boxes, white in this chart, this is from stockcharts.com one of the websites that I use, white represents that it’s going up every single day.
So if it’s going up every single day and it’s being telemarketed, and there were email promotion, you pretty much know that it’s going to fail eventually, so the higher it goes, the better short it’s going to be, and you can see, when it crashes all in one day. It wipes out an entire month’s worth of gains. So for me, I love shorting penny stocks, especially penny stocks that have been pumped up.
Number 6, I have students who study and trade eight to twelve hours a day. Some prefer one to two hours, some only 30 minutes a day. View this as creating a lifetime of wealth. Not just a few hundred thousand dollars. Not even just a hundred thousand dollars, okay. With stock trading and market knowledge, you have a short window before something distracts you. But don’t wait until you’re old and gray.
The sooner you have this knowledge, the sooner you can begin trading. A lot of people ask me, “You know, I’m busy this summer,” or, “I have a job,” or “I have school.” Whatever the reason is, “I’m going to get to this later on.” You can make a ton of excuses in life, but if you are not equipped with this knowledge now, as opposed to later, you miss out on every single opportunity that is happening now, as opposed to later. You can start learning about this stuff in six years. That’s fine, but you’re going to miss out on all the opportunities for the next six years. And that’s not fine.
So for me, I don’t care what I have going on in life. I want to teach you right away. Because I recognize the urgency, and I hope that you do, too. Even if you can only commit to studying 30 minutes a day. It’s still going to change your life. Every single thing that I teach can be learned within a few months and at worst, a few years. But you will have it for the rest of your life, whether you’re 18, or 20, or 40, or 60. I have students of all different ages. But the sooner you get this knowledge, the better.
Number 5, trade the actual stock. Not press releases, not management promises. As my top student, Tim G. says, “Trade the ticker.” Companies and management, they like to lie. They like to hype up. They’re cheerleaders for their own companies. Once upon a time, I fell for it and I personally lost over $500,000. I learned the hard way. I don’t want you to have to lose $500,000 to learn this lesson. So trust me. Stick with stocks that are liquid and take the move.
Do not listen to management. Even if they’re not lying, even if they’re not hyping, even if they’re the best, most righteous person in the world. Most of these small companies will fail. So you know the statistics. And you have to recognize and rely on these statistics. Because if you believe that every new penny stock, every new technology’s going to make it, you’re going to be inevitably disappointed. And I don’t want that to happen. So focus on the stock. Do not focus on pipe dreams, and do not give into the hype. Do not fall for it, or else you’ll lose a lot of money like I did.
Number 4, fear of missing out, FOMO. Avoid FOMO at all costs. FOMO can and will lead to making poor decisions. It doesn’t matter if you miss out on something. Again, there are so many opportunities. You will learn from every single one of them, and be better prepared the next time. You do not have to get into a stock right away. No matter what kind of pressure anybody is putting on you. And probably the only person who’s going to say like, “Don’t follow alerts. Don’t follow picks.” I don’t want you to.
Other people will say, “You have to buy this stock right now.” Don’t listen to them, okay. They are lying to you. They are trying to manipulate you. I’ve seen everything that happens in the penny stock market. Do not listen to tips. Do not follow alerts. This is all about your education. And you’re, basically, development as a trader. Your development as a financial leader. Your development as a millionaire. And the way to get to the biggest prize possible, that meaning financial freedom, geographic freedom, no job, no boss, no debt, is to develop your own knowledge. Not any one pick. Not fear of missing out on any one pick.
There are an estimated 300,000 day-traders in the U.S. and 90% of them lose money. Just think about that, okay. This is an industry where everybody has such grand hopes. You have companies like E*TRADE promoting themselves on TV with a little baby. Look at the little baby. It’s funny, okay. It is not funny. This is a serious business and most people lose. You need to have an advantage over the others or be among the 90% of losers.
So some of the biggest firms on Wall Street use algorithmic trading. We use this picture of Arnold Schwarzenegger as Terminator. You have Skynet taking over, right. You cannot compete against machines or robots that are trading in the stock market. They move too fast. They move within nanoseconds. Algorithmic trading has destroyed traders who trade big companies because frankly, the humans just cannot act or react to news as quickly as a machine can.
And these big hedge funds, these big Wall Street firms have huge amounts of PhDs from all Ivy-league colleges, designing all these computer algorithms. They haven’t yet figured out how to destroy humanity, but I’m sure it’s coming in the future. For now, they’ve determined how to basically destroy all the traders on Wall Street. So this is no joke. The good news is, I don’t want you to panic. I’m no mad scientist. I have no PhDs. I have no machines working for me. And yet, I’m still successful. But at the same time, I recognize that software should become your new B.F.F., your new best friend forever.
So number 3, this is a screenshot of my StocksToTrade software. This is my terminator for right now, where I want to look for the hottest stocks every day. As I said, the biggest percent gainers. And tools like StocksToTrade helps dramatically. This is my new B.F.F. It helps me with scans and charts, and level one, and level two and breaking news and fundamentals and preprogram strategies. And it’s only going to get better.
So while I don’t necessarily like algorithmic trading, and it doesn’t really apply to penny stocks, we have started to use StocksToTrade to make it easier to do a lot of the heavy lifting. To sort through thousands of stocks and pick out the five or ten best ones to trade every single day. And here’s a little testimonial at the bottom from one of our users. His name is Rebel Trader, and he said, “Solid trade on SZYM this morning. In at 258, out at 293 all thanks to StocksToTrade earning scans. Timothy Sykes.” StocksToTrade can be programmed to find companies that are reporting big earnings wins. And then you just try and buy the breakout and you ride the wave. And Rebel Trader did it, and he made 10% in a few minutes**.
So again, he didn’t take the whole move. Ten percent on his money wasn’t going to be that amazing, but when you can make 10 % in a few minutes, in a few hours, you take the 10% and you move on, and you say, “Thank you, StocksToTrade.” Here’s a few more testimonials, just that we’ve gotten in the past few days. People are tweeting us all the time, just loving the different features and the scans. So I’m very excited about StocksToTrade in the future, and I just wanted to share this with you.
So tip number 2, I have many small losses and small gains, but those do not move the needle on my overall account growth. I never aim to make a few cents a share on any stock trade, okay. That’s what happens when the stock isn’t living up to my expectations and I get out for whatever reason. Too many people aim for these small gains, thinking, “Oh, if you made $50 here or $100 there, it adds up.” That’s nice, until you get blindsided by a trade that goes against you too fast. And it wipes out two weeks, two months, two years of profits. That is called scalping.
With penny stocks, you have to avoid scalping. Some people will say, “Well, why don’t you just put in a stop loss? That way every time you get in a trade, you put in this automatic order and it protects you.” Well, because penny stocks are so volatile, stop losses don’t protect you. The stock can just blow right through your stop loss, and you’ll still be in it. So the key is choosing better trades, not trading as much, not setting yourself up for a possible disaster.
I have more lesson, so I’m going to get into lesson 1.5. I know I said 35 stock market hacks, but here’s a little more. Here’s some bonus. So, lesson number 1.5, no one trade will make you rich enough to never have to trade again. However, one bad trade can wipe out your entire trading account. Think about that for a second. You must always protect your risk, and your downside, and your blindside.
You need to understand and optimize your position size, again, so that you’re comfortable. You cannot risk losing too much. I know too many traders, where they don’t think about what could happen if they’re wrong and they get wiped out. And their spouse is angry. They lose their kid’s college fund. The stock market is scary, okay, if you have no plan. No different than driving. If you’re driving 100 miles an hour in a 35-mile-an-hour zone and you’re drunk driving, you’re probably going to get into a car accident.
But if you follow the 35-mile-an-hour signs and you don’t drunken drive, and you pay attention to the road signs, guess what, driving can be very fun. Especially with my Ferrari and Lamborghini. But you have to respect the rules. With the stock market, people don’t know the rules. So that’s why I say my job is basically like I’m a glorified driving instructor. I’m teaching you the rules. I’m teaching you how not to wreck your account. And until you have a consistent track record of wins, you should never trade large position sizes. Remember, live to trade another day.
Here’s lesson number 1.25. We’re getting to the end here, so I want to just stuff these into your brain so that you really remember them. Your success will be dictated how you approach trading. Do you have a business or a hobby? Even if you only trade a few hours per week, treat those few hours as a business, not a hobby. Now I know for a lot of people the stock market is a fun little hobby. No different than looking at like baseball cards or fantasy sports, or something like that where you’re not really going to make money, but it’s entertaining. You like the action. Do not do that with stock trading. Do not do that with your investments. This can change your life if you treat it right. Or it could just be another one of your hobbies. And that is not cool. This can and will change your life, if you take it seriously and treat it as the business that it should be taken as.
Here is my final lesson. Look for a mentor/group of successful traders who can speed up your education. I really wish that I had that, but I’m 100% self-taught. Now my goal every day is to be the mentor to you that I never had. You will learn every single thing that I just taught, if you go through my same kind of journey for nearly 20 years. Or you can learn from me and my millionaire students and we can help speed it up and you can learn everything within a few years, or better yet, even a few months. That is why I bound out of bed every single day. Thinking about how confused and, frankly, just how sad I was in the beginning.
Even though I had made money from the get go. I did lose along the way, and I made so many boneheaded mistakes because I never had a guide or a mentor. Now, I want to be the mentor to you that I never had. This is so, so, so, so important that you understand this. This is my goal in life. This is my entire business. This is my meaning for existing. So I get that this is hard. You’re probably feeling information overload. So I have a solution. Trade with me live. See everything that I just discussed live in real time so that you can see example after example after example so it becomes less confusing, less overloaded. So, do you want a millionaire to hold you accountable?
I’m not easy on my students. I don’t know if you’ve looked around, but I do not make friends very easily with my students. Because I’m not here to be your friend. I’m here to hold your hand and guide you. I’m here to teach you the tough lessons that nobody taught me in the beginning. So we’re not going to be best friends where you’re just going to be like, “Oh, Tim, you’re so friendly. You’re so nice.” I am here to change your life. I have a very specific mission. That’s why I have this very serious-looking photo right here, right.
I’m not going to be totally mean, but at the same time, I have a very specific mission, to teach you everything that I know to keep you safe in the stock market, where most traders lose, and to actually help you grow your account exponentially. I know my job. But my question to you is, will you be a dedicated student? So you can trade live alongside me on a virtual trading floor. This is something new that my team and I have devised because I’m using every single kind of possible tool to educate you.
Only 200 people will get to join me on May 16, roughly a month from now, on a virtual trading floor, from the premarket, to the market close. I’m going to stream several camera angles so that you can see every single thing that I’m doing from my screen, to my eyes, to my hands. You’re going to be pretty much right next to me, no matter where you are in the world. And this will last all day long. This is not just one hour or two hours. I’ll probably lose my voice by the end of the day. But it’ll be worth it, because you will be able to watch every move as I trade live.
And in the week prior, I’m going to send homework and watch lists so I’m going to help you guys prepare for this one-day virtual trading floor. So, what will we be doing on the virtual trading floor? Number one, we’re going to build a premarket watch list. I’m going to show you exactly what you need to look at and what stocks I’m looking at. Then, we’re going to determine which stocks from the watch list to actually trade. Number three, we’re only going to choose the best trades for the day. The gimmes, the breakouts, the breakdowns.
This is live trading. And there will also be live Q and A, okay, so you will be with me all day long. It is going to be an incredible educational experience. But, I have to warn you, the value of this, normally is several thousand dollars. But because it’s my birthday celebration, I want you to get rewarded right now. I want to reward action takers. Normally this would cost $2500, but I’m going to make this virtual trading floor event very affordable for pretty much anyone on this webinar. And yes, this event will be recorded so you can watch it over and over again. But before I give you a price and the link for only the first 200 action takers, I have a couple bonuses and an announcement.
First of all, as I mentioned earlier, we have a new TV show that I’ve been working on, Tim Sykes’s Search for The Next Big Time Trader. I will be selecting three traders over the next few months, and I am going to show up at your home and teach you in person how to trade live with me. I’m going to teach you how to live, Tim Sykes style. There will be a film crew, so you need to be okay being on camera and being on TV. But there are rules to this. First and foremost, you have to be prepared. You need a solid foundation in my strategy with some trades under your belt.
If I’m going to show up to your home, if I’m going to travel to you, you have to prove that you’re worthy. In order to be considered for this, you have to have participated in my virtual trading floor and be astudent. The odds of being selected for this are slim. And please do not spam me begging me to be selected. I get that enough. A lot of people asked. I’m going to be judging you. My team is going to be judging you, and we’re only going to select the most worthy students, to change your life. If you’re among the 200 to get my virtual trading floor first, then you get this as a bonus. Let me show you a video. This was a clip from last year’s conference in Vegas.
This year’s conference is going to be September 10th, 11th, and 12th in Orlando. The regular price to attend is $1000. But, right now, I have a special discount coupon for you, which is $700 off for only the 200 virtual trading floor students. I’m going to give you this bonus right now. You have to take action right now, because I want dedicated students and I only want serious students. So if you have any doubts, do not do this. This is for the most dedicated students and only 200 of you will get this and this will go quickly.
So why not one more bonus though, right? It’s my birthday. I can be a little nice, too. Here is another picture from our StocksToTrade software. I’m going to allow you to test drive this new software for just $1. This revolutionary software that will help you sort and scan for the hottest stocks every single day, all the breaking news, SEC filings, alerts. It will be for you for just $1. You will be emailed a link for this right after signing up for the virtual trading floor. And you’re also going to get one hour of training on how to make money using StocksToTrade, which is $497 value. A special bonus for you for free once you sign up for this for just $1.
This is an amazing opportunity. It will not last. You need to take advantage of it right now. Here’s what you get. Let me just recap everything: the virtual trading floor, May 16th with a replay available, the possibility to appear on my upcoming TV show where I’m searching for the next big-time trader, a $700 off coupon to my annual three-day live trading conference September 10th, 11th, and 12th in Orlando, StocksToTrade software for just $1 test drive and front of the line access to be interviewed for myif you’re not a student already.
And myis where all of my millionaire students have been created**. Now my millionaire students actually help mentor other students, and this program is the single most successful educational program in the history of the stock market. So I am very excited about all of this, and I’m looking forward to teaching you. But you have to act right now. This entire package, the value is normally $3600, but again because it’s my birthday, I want to give you a special. You’re saving over 90%, $297 if you go to TimothySykes.com/order right now, and yes, I am closing the door after the first 200 sign ups.
No exceptions, no begging. This is for people who want to change their life, who want the knowledge, who don’t want to follow alerts, who don’t want hot picks, but who actually want to study and change their lives over time. Two hundred sign ups, then it’s over, $297 go to TimothySykes.com/order and I’ll see you live on May 16th.