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Trading Tips-Tim Sykes Penny Stock

5 Essential Tips I Tell My Students Every Morning

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Written by Timothy Sykes
Updated 10/18/2023 9 min read

Uncertainty creates volatility in the stock market.

And volatility creates opportunities.

That might sound cold, but that’s how markets have always worked.

So despite all the negative news we’re hearing…this is actually an opportune time for traders.

That said, it’s easy to get overwhelmed and even lose money in  such a fast moving market.

That’s why before I reveal my daily watchlist to students, I remind them with these five essential tips.

Not only have they helped me rack up over $7.5 million in career trading profits, but I’ve taught to my over 30 millionaire students as well.

#1 The Art of Cutting Losses

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Many of my top students lost money their first year, or at least didn’t make anything substantial.

However, this is to be expected.

It takes time to learn the setups, psychology, and risk management skills of a winning trader.

Most folks don’t have the patience…

Instead they are aggressive too early…without having an edge.

They risk too much…and end up blowing up their account.

If it takes time to learn the skills…don’t you think it makes sense to take small and quick losses.

This doesn’t just work for newbies…it works for experienced traders too.

Heck, it’s my number one rule.

Cut losses quickly.

If you consistently trade A+ setups then you hopefully will win more than you lose. If that’s true, then all you have to do is keep your losses small.

Small losses can become substantial if left unchecked.

A single mismanaged trade can erode weeks or even months of gains.

If 90% of traders lose…you’d have to think it’s the 10% who know when to cut their losses that come out on top.

#2 The Power Of Knowledge

bonus tip 2 to the best trading risk management
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It might sound cliché, but knowledge truly is power in trading. While profits can provide a temporary high, the acquisition of knowledge ensures long-term success.

Think of trading as a game of chess; to win, you must think several moves ahead.

Profits might excite you today, but the knowledge you gain will arm you for the challenges of tomorrow.

With over $7.5 million in trading profits, I can vouch that my success didn’t come overnight. It was the accumulation of insights and lessons learned over the years.

Always ask yourself what setups are working in this market?

Where are you most vulnerable? Do you tend to overtrade after a loss, or get too aggressive after a few wins? Identify your weaknesses and see what you can do to bottom them up.

Even though I’ve had great success in the past, it means nothing today. That’s why I’m not afraid to tinker with new strategies, and try different setups.

So many poor performing traders are stuck in the past, hoping things would be more like they were a few years ago…they haven’t adapted. And that’s why they struggle.

If the markets are changing…don’t you think you need to keep up and adapt with them?

Of course you do.

#3 Alerts Are Not The Answer

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So many newbies are looking for a free lunch.

A copy and paste solution.

But trading isn’t that easy, and you should be very cautious following anyone’s alerts…including mine.

Don’t get me wrong…

Alerts can be beneficial, but only if used correctly. Instead of blindly following them, use these alerts as learning opportunities.

Let them be the training wheels, guiding you until you can trade confidently on your own.

Each trader’s journey is unique.

So, tailor your approach by finding patterns and strategies that resonate with your style.

In the words of a popular adage, “Give a person a fish, and you feed him for a day. Teach them to fish, and you feed them for a lifetime.”

#4 Consistency and Patience: Unsung Heroes

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The stock market isn’t a sprint…it’s a marathon.

It’s not about making a quick buck but building a strategy that stands the test of time. Every trade won’t be a winner, and that’s okay. T

The goal is to refine your strategy with each trade, ensuring a higher success rate over time.

As tempting as it might be to jump at every opportunity, remember to stay disciplined.

Analyze, learn, and then act.

This approach has made me and my top students millionaires over the years.

#5 The Nuances of Preparation

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A well-prepared trader is often a successful one. Being prepared means more than just glancing at a stock ticker.

It requires a deep dive into why a stock is moving, understanding its history, and knowing its potential trajectory.

For instance, stocks like MNTS, TPST, and MBOT had substantial moves recently. But diving deeper reveals the intricacies behind these movements, ensuring you aren’t caught off guard.

That’s why I review all my trades. I analyze the setups, my thought process, as well as the outcome.

I don’t judge my trades simply on if I made money on them or not…I rate them on my thought process and decision making.

After all, not every trade is going to be a winner. I could have the right idea but a bad entry, lack of patience, oversized etc. One small tweak can turn a good idea into a profitable one.

Mastering the Stock Market: Strategies for Success! 🚀

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In these volatile times, both challenges and opportunities arise. Stocks are constantly shifting, so how do you ensure consistent gains?

How do you navigate around the traps many traders fall into?

Recognize that success isn’t solely about identifying hot stocks; it hinges on mastering strategies that consistently lead to wins.

Whenever I engage with my students, I arm them with tips that have not only propelled me to over $7.5 million in profits but have also been foundational for my 30+ millionaire students.

These aren’t theoretical; they are tried, tested, and triumphant methods.

📚 Discover the art of timely loss-cutting and its significance.

📚 Understand the unmatched power that knowledge holds in the trading realm.

📚 Realize why blindly following alerts can be your undoing.

📚 Grasp the unmatched importance of consistency and patience in this trading journey.

📚 Dive into preparation techniques that set apart the rookies from the pros.


Trading isn’t merely about buying low and selling high. It’s an art. It’s a skill. It’s a relentless journey of continual learning.


Ready to Dive Deeper? 🌊

The stock market waits for no one. It’s imperative to take action if you’re committed to trading success. Dive deeper into these strategies, experience live trading scenarios, and engage in real-time analysis.

🌟 Uncover actionable strategies tailor-made for the current market dynamics.

🌟 Engage with live analyses that spotlight unexpected market behaviors.

🌟 Don’t just follow; learn to forecast and preempt market moves.

Eager to elevate your trading prowess? To transition from an uncertain trader to a market maestro?

🌐 Join us for our next live training session where we’ll delve deep into these principles and so much more. 

Take the plunge. Equip yourself.



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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”