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5 Shocking Truths About Making 7-Figures In Trading 🤯

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Written by Timothy Sykes
Updated 9/21/2023 8 min read

Hard truth: Most traders fail.

I know this not just from my own journey to over $7.5 million in trading profits.

But from mentoring over 30 of my students towards their own 7-figure goals.

There are obstacles and misconceptions that derail many aspiring traders, and a lot of the “advice” out there doesn’t help.

In fact, some of it can send you down the wrong path entirely.

So, what does it really take to make it in this game?

Here are the 5 shocking truths that you won’t hear on social media.


#1: Intelligence Has Nothing To Do With It

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You don’t need an MBA or a math genius to be a successful trader.

You don’t even need a high IQ or go to college for this stuff.


Because the stock market isn’t always rational. It has a lot more to do with recognizing patterns and managing emotions.

You do however need to study and work hard.

One of my top students, Jack Kellogg, who has amassed 8-figures in career trading profits is a former valet, who never went to college.

What’s more important than a formal education?

Putting in the reps…

Putting in your reps is essential if you want to be the small percentage of traders who actually make money.


#2 You Don’t Have To Trade All Day

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I’ve discovered that there are only a few good times to trade. Generally the first and last hour of the trading day.

Of course, there’s been more opportunities lately with all these short squeeze plays. But the first and last hour are still the best times for me.

Whenever I find myself in front of my screen all day, I will get the urge to trade.

And while that might sound like a good thing…it’s not.


Because there aren’t always good trading opportunities.

And when there’s not…you end up overtrading subpar setups and lose money.

I encourage my students to step away from the screen, get outside, and enjoy your life.


#3: You Don’t Have To Master The Entire Market

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I have made an entire career from trading penny stocks.

And while that might sound boring, I can tell you my life isn’t boring.

You don’t have to know everything about the stock market or know how to trade every strategy or setup.

I don’t touch options.

I don’t trade crypto.

I don’t invest.

And I rarely trade anything other than penny stocks.

I’m not saying you should trade penny stocks like me.

But master one setup at a time.

My favorite setup right now is dip buying these crazy short squeeze stocks. In a few months it might be something else.

But if you can get good at one or two things, you can have a great career in my opinion.


#4 Risk Management Is More Important Than The Strategy You Trade

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Short sellers are typically always right.

If you short an overextended crappy stock…it will eventually go down.

However, that’s not good enough.

If you can’t endure the squeeze, then you’re likely going to lose money.

That’s why risk management is more important than any strategy you trade.

I usually get in and out of trades quickly for a profit.

On the flip side, I cut my losses quickly.

So even though I’m not exiting my winners close or near the top…I’m still excelling because I don’t let my losers get big.

Again, if you want to make it, think risk management first.

#5. You Don’t Need A Lot Of Money To Get Started

You don’t need a lot of money to get started trading.

In fact, the smaller the better.


Because you’re going to suck your first year.


Why lose a lot of money in the beginning when you don’t have to.

Learn with small amounts of money, develop your skills, and scale up naturally.

I started with a few thousand dollars, and many of my now millionaire students did as well.

Success in this game can’t be bought…it must be earned.

Ready to Unlock the Real Secrets to 7-Figure Trading? 🤯

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I’ve spent years in the trenches, trading my way to over $7.5 million in profits, and more importantly, mentoring more than 30 students to their own 7-figure success.

If you think you’ve heard it all, think again.

You’ve read the “5 Shocking Truths About Making 7-Figures in Trading.”

Now it’s time to go deeper and discover the real-world strategies that have propelled me and my students to financial freedom.

These are game-changing insights you won’t find scrolling through social media.

🚀 We’re hosting live training sessions every day this week.

🚀 Multiple slots available each day to fit your schedule.

🚀 This is your front-row seat to actionable, proven strategies.

🚀 No filler, no fluff—just raw, unfiltered trading wisdom.

Want to know why intelligence has nothing to do with success in trading? Want to avoid the pitfalls of overtrading and poor risk management?

Ready to break away from the crowd and join the elite circle of successful traders?

Your Path to Trading Excellence is Here. No Excuses!


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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”