It was only a matter of time until Tim Grittani started trading again …
Grittani is still my most successful student. In a fraction of my trading career, he’s pulled $13.5 million from the stock market (including losses).
But in the last few months … Jack Kellogg started to threaten his position as my most profitable student.
Jack is sitting at $12.5 million.
- Maybe Grittani is feeling a little competitive.
- Maybe he just can’t resist this insane 2024 market.
Whatever the reason, Grittani is back. And he’s dropping trade alerts in the Challenge chat.
See the screenshot below where he details his position on MicroAlgo Inc. (NASDAQ: MLGO) from Tuesday, June 4.
Grittani’s Profit.ly handle is kroyrunner:
This is one of the most valuable blog posts I’ve made all year …
You’re about to see a Q&A between my most successful millionaire student, and my new students in the chat who are still learning this process.
All in the middle of a red-hot 2024 market where small-cap price action rivals the 2020 and ‘21 bull rally.
Let’s get to it:
Table of Contents
#1: What Was Grittani’s Risk?
In the screenshot that I shared above, Jayray asked Grittani what his risk was.
The risk level is the area that a trader will close the trade at if things don’t go to plan.
Grittani agreed $10.20 would be a good risk level.
Now, let’s take a look at the trade on the chart below from June 4.
As you can see … The stock rebounded above $10 after Grittani’s entry and pushed past his risk level.
He followed his trade plan and cut the loss!
Take a look at the screenshot below:
LOL, don’t cry Grittani, it’ll be OK!
Grittani wasn’t the only short seller to underestimate MLGO’s bullish momentum.
My student, Chris Schunk, took a sizable loss the same day while with me in Italy. Take a look at his post on X below:
I teach my students to trade long positions, instead of short selling.
But some of my successful students can’t resist the trade opportunities on both sides of a stock: Volatility on the way up and on the way down.
The important part is to stick to the plan.
Grittani and Chris both took losses on MLGO’s meteoric spike. But they controlled the losses. And controlled losses are part of our profit strategy.
Take a look at Grittani’s Profit.ly profile. He’s got $13.5 million in total profits, and he only wins 67% of his trades …
Make a trade plan based on our trading framework. And stick to the plan, win or lose.
#2: Long-Term Positions
Everyone always asks whether we (me and my millionaire students) have any long-term positions.
Here’s my answer:
I always encourage people to take advantage of every profit opportunity in the market.
An investment account is a good idea.
But that’s not what we do here. I’m not a Wall Street executive. None of my students are either.
See, an investment portfolio could aim to return 10% – 20% per year.
My students and I are trading stocks with the intent of realizing 10% – 20% returns in a few minutes.
As traders with small accounts, it’s more difficult to build wealth with slow-moving investment positions. Instead, we focus on volatile intraday moves that offer higher returns.
Here’s Grittani’s answer to a “long term” question in the chat:
Mariano asked Griattani whether he has any-long term positions.
Grittani answered that he does have an investment account, but that the sector is not his forte. Instead, he has a more capable friend managing his investments.
Think about it like this:
A trader can build wealth with volatile runners like MLGO. Then they can place a portion of those profits into a less-volatile investment account.
#3: Past Price Action
SOBR Safe Inc. (NASDAQ: SOBR) was another stock that Grittani talked about with students.
The price spiked 180%* before noon on June 4.
There was some consolidation in the middle of the day, and a student asked Grittani his thoughts on a possible breakout.
Here’s his response:
SOBR was a great stock spike, but the multi-day chart showed a previous spike on May 28.
The share price reached almost $8 that day and there are likely still bag holders from that level waiting to sell into strength.
Take a look at the chart below:
Grittani also mentioned warrants at $0.62 … On May 15 the company announced that a lot of its outstanding common-stock warrants would experience a reduction of the exercise price to $0.62.
The lower exercise price is another factor that contributes to SOBR’s sell off after the spike on June 4.
Pay attention to past price action and key press releases on these stocks.
Reading SEC filings might seem tedious at first, but they reveal valuable information about the stocks that we trade.
We can profit* in this niche because we’re better informed than the ‘average trader’.
#4: Keep Pushing
Grittani built his position over multiple years, making over 6,000 trades.
The reason why my millionaire students succeed: They continue to learn and push forward.
Earlier in this blog I showed you Chris Schunk’s loss on MLGO from June 4 …
On June 5 he got right back on the horse and turned it around. See my post on X below:
Gooooooooooooooood morning! What a CRAZY market this is, whewwwwww! @chris_sunk already locked in $7k+ on $ASNS & I made $2k+ on $SYTA with tons of other solid plays like $MITQ $MFI $NDRA $NVVE $CCM $ADIL and so many more…no going outside anytime soon, WILL YOU CAPITALIZE TOO?! pic.twitter.com/yjMsHiunBV
— Timothy Sykes (@timothysykes) June 5, 2024
You’re not the only trader on a life-journey toward profits.
Here’s the main question: Will you stick with it??
See my posts below!
Bonk is sticking with it:
Carlos is sticking with it:
Cameron is sticking with it:
And now that Grittani is back in the chat, my students have even more opportunity to learn our process for profits.
Join our trading community today!
I’ll see you there …
Cheers.
*Past performance does not indicate future results
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