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Trading Psychology

5 Proven Strategies For Unlocking Unshakeable Confidence

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Written by Timothy Sykes
Updated 8/28/2023 8 min read

Jack Kellogg is up nearly $2M this year, and we still have three more months to go.

That’s an average of nearly $250K a month…

It’s pretty incredible when you consider he doesn’t have a college degree, was never a great student in high school, and was an average trader his first year.

However, none of that discouraged this former valet.

And while his meteoric rise comes as a shock to most people…it isn’t for Jack.

Source: Profit.ly 

But how does someone go from barely surviving to becoming one of the top day traders in the country?

CONFIDENCE.

It doesn’t matter whether you’re a newbie, unprofitable,  a break-even trader, or someone looking to take it to the next level…

Confidence (or the lack of it) will determine your outcome.

That’s why I want to share with you the five strategies for unlocking unshakable confidence.

Has This Ever Happened To You?

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Have you ever gotten into a trade because you loved the setup…but after getting in you decided to talk yourself out of it?

Only to see the trade work out exactly like you thought it would…but you’re not in it.

Or how about this…

You’re in a trade with a specific price target in mind, but since you’re account is down, instead of watching the trade play out, you decide to take profits because you are fearful of seeing another trade go against you.

Or even this…

After a series of losses, you avoid good setups because you’re paralyzed by fear.

All of these stem from a lack of confidence.

You didn’t suddenly lose the knowledge you acquired…but you lost faith in your ability to execute.

Even I go through stretches where my confidence is low…it doesn’t matter how good or experienced you are…if you trade long enough…you’ll have stretches where your confidence is lacking.

Here are what I believe to be the best ways to develop unshakeable confidence.

#1 Be Prepared

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I don’t wake up and randomly trade ticker symbols. I come into each session with a watchlist.

In addition, I have a specific set of criteria I’m looking for.

I need several boxes to check before even considering taking a trade.

P (Pattern and Price Action Need To Make Sense)

R (The Risk vs. Reward Needs To Be To My Advantage)

E (The Ease of Entry and Exit Needs To Be Clean)

P (Past Performance Should Show Me The Stock Has The Potential To Spike)

A (At What Time Am I Placing This Trade? And Does It Fit My Schedule?)

R (Reason or Catalyst Should Be Compelling)

E (Environment Matters. Is The Market Uptrending, Downtrending, Volatile, Etc.)

I look at all these factors before deciding to risk my hard-earned money, and you should, too.

Now, you might be thinking, That’s great, Tim, but how do I know I’m in the right trades?

#2 Study…Study…Study

the bottom line outstanding shares
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Not only do I know my best setups like the back of my hand…I know which setups are working for the current market.

You see, some people will trade the same pattern because it worked for them in the past but don’t consider the current market.

The reason why I’ve been successful for all these years is because I’ve made adjustments, and I’ve been able to adapt.

Even though I’ve made millions in trading profits…I still journal all my trades.

I’m constantly studying what patterns are working.

Traders like Jack Kellogg aren’t throwing random darts.

They study trends, catalysts, and price action.

And because of that, they’re able to build conviction. It is a necessary component if you ever want to scale up and trade bigger.

#3 Put In The Reps

Millioniare Mentor Update Avoid the Slippery Slope
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2018 wasn’t an overly impressive year for Jack, but he was putting in the reps and building experience.

When the markets got hot in 2020 and 2021, he was ready to take full advantage of the opportunity.

One problem I see from so many newbies is they bounce from one strategy to the next.

Imagine a professional football player saying today, I’m going to try kicking field goals, and if that doesn’t work out, I will try wide receiver next.

It doesn’t work that way.

To be good at anything, you must work hard to develop your skills.

I’m an excellent trader when it comes to penny stocks.

But I’m below average at best if I dip into options trading.

I’m not saying you shouldn’t experiment or anything like that. But more so, to get good at anything, you must put in the time.

#4 Set Small Goals

conclusion reversal cadlestick
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Jack didn’t become an 8-figure trader overnight.

It starts with setting small goals first.

If you’re a newbie, your goal should be survival.

That’s right…survival.

Why?

Because you lack the skills, knowledge, and experience to be good.

You want to lose as little money as possible while developing those aspects of your game.

The problem is so many of you are in such a rush to make it happen.

Have you ever tried to cram for an exam the night before?

You might remember some stuff, but you might also be super confused because you overwhelmed yourself with so much information.

It’s not the way to go about it.

Master one set up at a time and focus on trade at a time.

As you progress, then start adding other layers to your game.

Set small goals for yourself, crush them, and set bigger ones.

#5 Accept Failures as Learning Opportunities

understanding first red day pattern trading
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For every four trades I place, one of them will be a loser.

Some traders can be profitable by losing more than half of their trades if their winners are substantially bigger than their losers.

Trade long enough, you will face failures and setbacks.

Instead of seeing these failures as obstacles, view them as opportunities to learn and grow.

By reframing failure this way, you reduce the fear of trying a new strategy or scaling up…and can approach challenges more resilient and confident.

(Bonus: #6) Surround Yourself With Positive People

students kyle mari and jack
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Despite making over $7.4 million in trading profits, I’m even more proud that I have over +30 millionaire students.

Surrounding yourself with others who have achieved what you want to achieve is priceless, in my opinion.

That’s why, throughout the week, my team and I host live training workshops. 

These workshops are designed to help you make improvements in your trading.

The best part is that they come to you at zero cost.

CLICK RIGHT HERE TO REGISTER FOR THE NEXT LIVE CLASS. 


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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

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* 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 (205) 851-0506 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”