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Trading Tips-Tim Sykes Penny Stock

3 Ways To Avoid Trader Burn Out

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Written by Timothy Sykes
Updated 11/14/2023 6 min read

In trading, just like in fitness, there’s a thin line between pushing hard and pushing too hard.

I’ve seen so many eager newbies fall into the trap of “overtrading” – the market equivalent of “junk volume” in the gym.

It’s a dangerous path, leading to burnout and losses, not gains.

Today, I’m going to share how to strike the perfect balance in trading, avoiding the pitfalls of overdoing it while seizing the right opportunities.

In addition, I’ll show you what’s been working for me in this current market.

There are massive opportunities lurking if you know where to look.

#1: Quality over Quantity– Focus on High-Probability Setups

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If you follow me on social media then you know that I’m never in one location for more than a few days.

My hectic schedule limits my screen time.

That means with the limited time I do have, I must be prepared to tackle the trading day.

That’s why each day I’m sending out my watchlist to my students. In addition, I’ve studied up on what the top patterns working right now are.

For example, one thing I’ve seen work really well recently is earnings winners.

It’s what got me into the ticker symbol DRCT on Friday..

And cleanly out by Monday– thanks to my weekend strategy. 

You don’t have to be in front of the screen all day…hoping to catch a trade.

If you do…you’re likely going to find subpar setups…trade them…and lose money.

Instead focus your energy on prime trading hours which are usually the first hour and last hour of the trading day. And the first hour of the after hours.

#2: Implement a Rule-Based Strategy

tim sykes pointing at chart
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If you struggle with overtrading then maybe it’s time you set some rules for yourself.

For example, limit the amount of trades you take per trade.

I know, it sounds silly, but it could work.

Some traders will make one good trade a day and then spend of the rest of their day giving up those gains by taking less optimal trades.

If that’s you…set a rule stating that you will only take one trade per day.

What I do is adopt the mindset of a retired trader.

I come into every session saying I WON’T TRADE.

However, I’m willing to come out of retirement if I see a setup soo good that I would regret not being involved.

#3: Study…Study…Study

Tim Sykes tosses his book An American Hedge Fund in the Alps
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2023 has not been the easiest year for me in terms of trading.

Yes…I’m profitable…but not nearly as much as year’s past.

However, it’s forced me to stay sharp and study hard.

I’m constantly reviewing my trades and other setups working.

My success in DRCT wasn’t an accident

I’ve seen earnings winners pay out time in and time out.

For example, it reminded me of another recent earrings winner in NRDS. 

And like DRCT, this was utilizing my weekend strategy. 

Now, the thing about these types of trends is that they come and go.

That’s why it’s so important that you study consistently.

🔥 Join Our Live Training: Master the Art of Balanced Trading 🔥

jack and tim
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In our upcoming live session, dive into the strategies that allow you to make the most out of your trading time without burning out. I’ll be sharing insights on:

  • Quality over Quantity: Discover high-probability setups that require less screen time but offer more potential.
  • Rule-Based Strategy: Learn how setting trading limits can prevent overtrading and increase focus on high-quality trades.
  • The Power of Preparation: Understand why continuous learning and adaptation are crucial, especially in challenging markets like 2023.

💡 Gain Insights from Real Traders:

Learn from my top students as they identify the biggest trends working right now.

👀 Avoid the Pitfalls of Overtrading:

Understand why trading less can improve performance.

Get insights on why the best traders often trade the least.

Embrace the mindset of a ‘retired trader’ to select only the best opportunities.

🌟 Are You Ready to Trade Smarter, Not Harder? 🌟

Join us in the live session and step up your trading game.

This is your chance to learn how to balance trading with life, making each trade count without the risk of burnout.


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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”