Trading well is successful trading. I know that might seem counterintuitive because you want to make money, right? But trading well doesn’t always mean winning…
The truth is you’re gonna lose sometimes. At first, you’re probably gonna lose a lot. So it’s more important to focus on trading well than winning big.
I want you to make money from trading. But you need to be willing to put in the time and effort required. If you study hard and learn to trade well, you can learn to better manage your risk and fine tune your idea of long-term success. Learn from me and my top students — apply for the Trading Challenge today.
Table of Contents
- 1 My Latest Asian Adventure
- 2 Tim’s World Trading Lesson
- 3 Trading Questions from Students
- 3.0.1 “Your AXXA trade compels me to study paid pumps and promoters. Are there any ‘must-study’ pumps from the past? Are there any ‘must-follow’ promoters?”
- 3.0.2 “Short selling tempts traders with ‘easy money’ at the expense of trading well. What are your personal criteria for trading well?”
- 4 Millionaire Mentor Market Wrap
My Latest Asian Adventure
As you know from last week’s update, I was in South Korea for several days. I met with a lot of Korean musicians and celebrities. Unfortunately, I still can’t name any names yet, but soon we’ll have them getting involved with Karmagawa. And they have a ridiculous — ridiculous — social media reach.
I had some amazing Korean food. Seoul is a very big upcoming foodie destination.
Now I’m in Japan — there are two projects we’re working on here with some Japanese fashion designers. We’re getting more heavily involved with them, so stay tuned on that.
I’m also here for some sushi tasting. I always like to mix my charity work with food tastings, meeting with celebrities, and fashion. My life is a lot of multi-tasking. But it’s beautiful, too.
One thing I want to highlight this week is the poor treatment of these elephants in India. Check out the Karmagawa Instagram post below. Please share it so we can spread awareness. Over 200K people have shared this in two days. (Warning: Some may find the following disturbing or upsetting.)
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⚠WARNING GRAPHIC IMAGES⚠ THIS ANIMAL CRUELTY MUST STOP RIGHT NOW! Please share this post with your followers and tag people, celebrities and news media who need to see it to help us spread awareness of how poorly elephants are being treated in India! This is a photo of an elephant calf set on fire. This pic shows a people throwing firebombs, which are fire-soaked balls of tar, and crackers at the elephants to send them away from a human settlement which was nearby. The heat from the fire harmed their delicate skin as mother and child attempt to run away from people. In this, the mother elephant closed her ears as she was scared and wanted to ignore the crowd. Behind her, her calf baby screams in confusion and fear as the fire burns at her feet. Picture Credits: Biplab Hazra #savetheelephants #endanimalcruelty #karmagawa
Our goal is to build massive awareness of this and expose the struggles elephants face. We have an upcoming initiative in 2020 to deal with the elephant crisis in India.
I’m always grateful for the opportunity to give back. With that in mind, let’s get on to some talk about trading…
Tim’s World Trading Lesson
Let’s go with a question this week…
“What’s your best recent trade with regard to how well you traded it?”
Considering the time zone, I’m trading well. I’m on a bit of a run. But I prefer trades where I can say “That was a perfect setup AND I traded it well. I could repeat that over and over again.”
So here’s an example, I’ve traded Discovery Gold (OTCPK: DCGD) a few times. On September 11, DCGD hit a new high of $2.22 per share before dropping back to the $1.70s. It was one of my top penny stocks to watch in August. It was awesome watching DCGD go up so much. But I was only interested in a dip buy on a big morning panic. I don’t chase.
As it turned out, on September 12, the big panic happened. But it was a classic case of over-excited trading for me. I actually forced a few trades thinking the big bounce was coming. The good thing was I did exit and cut losses quickly or took small profits. It was basically a scratch — I made a total of $100 on those three trades.
(See every trade, including entry/exit comments, on my Profit.ly trades page. I’m 100% transparent and share every detail of ALL my trades. Unlike some other fake gurus.)
I also traded a nice little morning spike on Exxe Group Inc. (OTCPK: AXXA). It was a former runner with a good catalyst. Goldman Research (not to be confused with Goldman Sachs) reported a target price of 40 cents a share. More on that later in the post.
As for a trade where I was trading well…
I think Tautachrome, Inc. (OTCPK: TTCM) was my best — where I had an overnight position and also bought it on breaking news. That was a trade you could repeat again and again. I wrote about that trade — and its perfect trading setup — in the last edition.
The important takeaway is to watch for former runners with upcoming catalysts. The breaking news teased uplisting to the OTCQB exchange some time in September. But they announced this in the last few days of August. It’s a very nice way to get people excited without giving too many details.
Let’s move on to student questions…
Trading Questions from Students
“Your AXXA trade compels me to study paid pumps and promoters. Are there any ‘must-study’ pumps from the past? Are there any ‘must-follow’ promoters?”
Most of the promoters are gone or they sold their email lists. Or they’re just not as effective anymore. You can study the past. I highly encourage you to do so.
Study when the pumps worked. You should all be watching Tim Grittani’s amazing “Trading Tickers” guide. Michael Goode also made a lot of money. If you watch our “Read SEC Filings” DVD, you can learn a lot about the pumps and the promoters.
Recognize Former Runners With a Catalyst
But AXXA for me … again, it’s just recognizing former runners with a catalyst. With AXXA, it was the Goldman Research–initiated target price of 40 cents when the stock was trading at 2 cents. So, 20 times its current price. Ridiculous. Unethical. But very good for pumping.
Take a look at the one-month AXXA chart. Pay attention to the price/volume spike on September 4.
As you can see, the stock was trading under 2 cents a share with very little volume. Then, with the news catalyst, there was a volume and price spike. That was it. I was in and out of this trade in about ten minutes for a 12.36% win of $1,100.*
Since I was also trading DCGD and giving a webinar at the same time, I was happy to lock in safe profits.
Most traders see the press release on Yahoo Finance and don’t realize how ridiculous it is. But it says right in the disclaimer on the research report that they were “compensated by the Company in the amount of $5000 for a research subscription service.”
Key takeaway for successful trading: if you…
… know enough about former runners, and…
… know about the “research” company then…
… you know it’s a good catalyst.
I’ve done two or three dozen video lessons specifically on Goldman Research over the years. As a Trading Challenge student, you’ll get access to all my video lessons. But you have to apply to get in and no lazy losers are allowed. Be ready to work your tail off.
“Short selling tempts traders with ‘easy money’ at the expense of trading well. What are your personal criteria for trading well?”
It’s not just about how much money you can make. It’s about how to do it with a small account. What’s the percent gain? Not just the dollar gain. Also, what’s the risk you take?
A lot of short-sellers are fantastic with the percentage gains because most of these stocks do come down. And I get it — I’ve made millions of dollars shorting. The problem right now is you need a rather big account to average up. You don’t know where the exact top is. Recently, short squeezes have been spiking higher and higher.
Short Selling: Tales From the Dark Side
The biggest downside of short selling is the risks you take. You see these traders post screenshots of big wins. They make $50K or $100K. But they’re using a million dollars on the trade. And they don’t show you their big losses.
While it looks cool to show a screenshot of a $50K win, I’d rather you focus on trading well. In the long run, it crushes the risky big-dollar wins.
So, you have to be meticulous with…
- How much money is at stake?
- How much are you using on the trade?
- What’s a good small account strategy?
If you look at my losses…
Rule #1: Cut Losses Quickly
When I dip buy morning panics … if the panic keeps going, I cut my losses quickly. Buying breakouts … if the breakout doesn’t happen, I cut my losses quickly. If I’m buying first green days for the gap up but there’s no gap up … I get out immediately and cut losses or take small profits.
So the risk for strategies I teach and employ right now is very little. If I’m wrong, it’s a very small scratch. If I’m right, I make a few hundred or a few thousand dollars.
(Just remember, these are not typical results. I’ve put in time and dedication to develop exceptional skills and knowledge. Most traders — 90% — lose money. Always remember trading is risky. Never risk more than you can afford.)
Actually, it’s fitting I have to add that disclaimer to keep my lawyers happy. Because most of the fake short-selling gurus tell their students it’s gonna be easy. It’s not. Again, it takes time. My strategies are very low risk for me because I have years of experience and I follow my rules. Especially rule #1: cut losses quickly.
Risk vs. Reward
So risk/reward matters a lot. Not just big dollar gains. And a lot of traders and newbies get confused. A lot of ‘teachers’ and ‘gurus’ take advantage of newbies who don’t understand that. They just wanna make $50K in a day.
Develop Your Process Trading With a Small Account
So I get made fun of for trading with a small account. But I’m teaching the process. And I like it when people make fun of it because it helps people see reality. If you look at what I’m teaching, it helps differentiate me and show why I’m real. So thanks, haters.
Why would anybody focus on making smaller dollar amounts if you can make big dollar amounts? Well, the big dollar amounts are too risky. You need too much money to employ them effectively.
That’s why so many newbies blow up and lose half or all their money. They try to make big money and try to follow big-money strategies. Newbies don’t realize they’re playing a flawed game. And they’re getting lied to and manipulated.
Short Sellers Are the New Promoters
That’s why I said short sellers are the new promoters. There’s always an informational inefficiency. In the past, promoters lied…
“This small company found the mother of all gold veins in Peru!”
“This company found enough oil in Ecuador to make the Saudis shake in their boots!”
“New cure for cancer big pharma doesn’t want you to know about!”
So basically they’re lying and that creates an inefficiency. What happens when the lie gets discovered? Well, the stock crashes. So it’s good to short sell pumps.
But now, the short sellers are the new liars. They say, “Oh, look how easy it is to short.” But they don’t teach you about the risks and expenses. So short sellers — especially newbies — are getting blown up.
It can pay to be on the opposite side of liars…
Millionaire Mentor Market Wrap
Another one in the books…
Remember, to become a better trader you should study the past. Then adapt to the current market. Develop your process and strategies over time. Trade with a small account until you trade consistently. Follow the rules — especially rule #1: cut losses quickly.
For in-depth training, apply for the Trading Challenge.
Even though I try to give as much as possible in these weekly updates, they only scratch the surface. There’s nothing like studying the content accessible to Challenge students.
That includes the thousands of video lessons and hundreds of archived webinars. And the experience of being in the chat room along with me and my top students every day is priceless.
See you in the chat.
Are you a trader? What are your criteria for trading well? New to trading? What trading lesson will you take from this post? Comment below, I love to hear from all my readers!