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3 Top Trading Tips RIGHT NOW From $9.6 Million Trader Jack Kellogg

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Written by Timothy Sykes
Updated 4/26/2022 8 min read

The market ugliness continues in 2022 with the S&P 500 potentially gearing up to join the bear market and tech stocks continuing to take a beating.

Despite all that, my Trading Challenge student Jack Kellogg is up about $796K on the year. His total profits are over $9.6 million.

You may be wondering — what’s he doing differently? How can you learn from him?

I got in contact with Jack and asked him to share his best three pieces of advice with you right now.

Jack’s results are extraordinary, but the tips he shares are simple. In fact, you can start following this advice TODAY.

(By the way — Jack isn’t the only trader who’s crushing it in this market. You’ll be blown away once you hear Jenny Smith’s story and how this stay-at-home mother of four utilized a “secret weapon” to make nearly $200K in profits.)

Don’t Know Jack?

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Jack Kellogg is a Trading Challenge legend. His total trading profits are over $9.6 millionabout $796K of that was so far this year. And he just turned 24 years old. 

(By the way — you’ve gotta see what he did for his birthday last year. Check out this post.)

With results like that at such a young age, you might think Jack’s some kind of genius. He’s not. But his work ethic and dedication are both extraordinary.

Jack is a former valet who wanted a better life. So in 2017, he made a New Year’s resolution to start trading.

If you really want to dive deep into Jack’s story, don’t miss my videos: ​​Confessions of a Valet Turned Millionaire Day Trader Part 1 of 4 (Also watch Part 2, Part 3, and Part 4). Here’s the first one:

Here’s the short version. When Jack found me, he was initially skeptical. But once he witnessed a penny stock supernova for himself, he was on board.

He joined the Trading Challenge and focused on paper trading at first to build up his skills. Early on, he learned an important lesson…

Self-Sufficiency Matters

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As Jack watched other successful traders like Mike ‘Huddie’ Hudson, he saw a pattern…

All of my top students used my teachings to develop their own strategies.

Jack knew that if he wanted to be successful, he couldn’t just follow alerts.

After a LOT of trial and error including blowing up his account by short selling, Jack found his footing with OTCs.

With OTCs, he developed a strategy that revolved around risk/reward levels. It was a game-changer. He talks a LOT about his strategy in this episode of the SteadyTrade Podcast:

When the hot market hit in 2020 and 2021, Jack was prepared to take advantage of the opportunities out there — and to scale up.

To put it in numbers for you…

These days, Jack goes both long and short. He still loves OTC breakouts and dip buys, but he also shorts breakdowns. He’s also dabbled in swing trading. While OTCs are still his favorite, some of his biggest wins have been on listed stocks.

Jack’s 3 Top Pieces of Advice For Traders

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Here are Jack’s top three pieces of advice for traders.

1. New To Trading? Go Long.

Jack first found trading success with short selling — then he blew up his account.

While he’s more secure in his short-selling strategy today, he doesn’t advise it for newbies. It’s just too dangerous for newbies and traders with small accounts. Here’s his logic:

  • “Longing is superior because you can only lose 100% of your money. With short selling, you could lose 500%.” (Or more!)
  • “There are a lot more fees involved with short selling. With longing, it’s commission-free on Nasdaqs now.”
  • “With longing, you have the chance to make so much more without as much risk.”

2. Trade Based on Risk and Reward

Jack doesn’t like guessing games. Instead, he likes evaluating risk versus reward.

Jack spent a LOT of time watching stocks trade before he was active in the market. This helped give him a feel for how stocks trade and how patterns play out.

It also helped him get an understanding of when a stock might fit one of his go-to patterns. Every time he enters a trade, he knows his risk versus reward ratio.

He also knows how to shift his risk level based on the price action — and how to adjust as the trade plays out.

Be sure to check out the SteadyTrade Podcast episode I referenced above — it’s older, but Jack shares a lot of specific tips for how he trades based on risk and reward.

3. Don’t Add to Losers

It’s a simple concept — if you’re in a losing trade, don’t add to your position and hope things will turn around.

But it’s easier said than done. In fact, one of Jack’s biggest losses to date was a result of breaking his own rule on Medmen Enterprises Inc. (OTCQX: MMNFF).

Jack was making a lot of money and winning a lot of the time during that point in his career. He needed a heat check.

He went too big on MMNFF. When the stock didn’t bounce right away, he averaged down — but it worked against him when he tried to cut losses intelligently.

He wanted to get out, but there wasn’t enough liquidity — so about $200,000 of that loss was  slippage, just trying to get out.

How to Learn From Jack

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Wanna learn more? Here’s how you can connect with Jack:

What’s your favorite piece of advice from Jack? Leave a comment below — I love hearing from you!

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Author card Timothy Sykes picture

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”