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What This Hater Got Right About My Trading

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Written by Timothy Sykes
Updated 1/10/2023 6 min read

Everyone should be suspicious of online trading programs that promise fortunes.

I don’t just expect…I WANT people skeptical of me.

That’s why I go above and beyond to show my proof as a trader and mentor.

Every one of my trades over the last 10+ years is available for ANYONE to view RIGHT HERE on Profitly.

No gimmicks. No marketing.

You can also find hundreds of YouTube videos, including LIVE trading sessions of me in the trenches.

Over 30 of my Millionaire Challenge students have earned $1 Million or more in trading profits.

millionaire students
© Millionaire Media, LLC

We posted many of their stories on my blog HERE.

Yet, that’s not enough for some people.

There’s a set of people who want everything spoon-fed to them.

A recent correspondence stood out from the others.

One ‘Hater’ refused to look at any of the links I sent him or read what I said.

And I don’t blame him. Like so many folks, the guy had been burned before.

But there was one statement he made that stuck with me.

“What’s the psychology behind 10+ minutes of hearing ‘study hard?’ This stuff is easy to learn. The hard part is applying it in the market in real time with real money!”

You know, he’s right…

It is hard to apply lessons in real-time with real money on the line.

That’s exactly WHY I emphasize studying.

Look, you can go out and learn the hard way.

Throw yourself into the mix and play with big dollars right out of the gate.

Unless you’re lucky, chances are you’ll get burned and frustrated.

If you want to learn how to apply trading lessons in real-time for real money, then I’ll explain how right now in a way that saves you money and actually MOVES you towards your goals.

The 3-Step Learning Process

one people one planet top penny stocks list
© Millionaire Media, LLC

Invigorated by the prospect of making a fortune, new traders love to go full-throttle right out of the gate.

That’s a surefire way to lose money quickly.

Would you let a surgeon cut you open who hadn’t been to school then supervised in dry runs beforehand?

Mariana, one of my youngest and only female millionaire students, didn’t place a single trade during her first year of the Challenge.

She spent the entire time studying and learning how to trade.

Unlike what the ‘hater’ suggested, learning the material isn’t easy.

Type ‘penny stock trading’ into a Google search and you’ll find thousands of sites that teach different methodologies.

That’s why I keep it simple with my students.

There are three steps to learning how to trade:

  1. Identify patterns
  2. Locate setups
  3. Learn execution

When folks first join the Challenge, I have them focus on the 7-Step Penny Stock Framework.

It’s straightforward and easy to understand.

Then, I teach them how to locate this framework amongst penny stocks.

That includes using scanners in the StocksToTrade platform and Breaking News for catalysts.

After that, they learn some basic setups like the morning panic dip buy.

All of this happens before placing a single trade.

Generally, I encourage students to practice with paper accounts first before throwing real-money into the mix.

It sounds basic, but learning how to navigate trading platforms is crucial to success.

You’d be surprised how many traders don’t realize the number of fat-fingered trades or setups they miss because they couldn’t physically execute the orders correctly.

Real-Time Execution

Tim Sykes checking his top penny stocks list in Italy
© Millionaire Media, LLC

Alright, so let’s say you’ve learned what you needed to know and think you’re ready for the big-time.

First, I want you to keep this mantra in mind at all times…

Lose small and fast.

The way I trade is the same way I teach my students.

My setups work quickly or not at all.

I treat every trade like it’s going to fail and focus on only taking:

  • High quality setups
  • The entry price I want
  • Stocks with catalysts

There are plenty of folks out there who trade the S&P 500, Forex, and other instruments quite well.

That’s not what I know nor what I’m good at.

I specialize in penny stocks and OTCs, helping folk grow small accounts into real wealth.

I wouldn’t know how to invest $50 million.

But I certainly know how to trade a Supernova.

The key with real-time execution is to come in with a plan and stick to it.

Before every trade you should know:

  • How much you plan to risk
  • Your profit target
  • Your stop loss

These don’t have to be hard numbers. But you should have specific statements that define them.

For example, I may not put a stop at $0.65 on an entry of $0.70. However, I WILL stop out if it doesn’t bounce 5%-10% within five minutes or so.

And believe me, taking a loss isn’t easy.

It’s something traders have to practice.

Keep This in Mind

Tim Sykes tosses his book An American Hedge Fund in the Alps
© Millionaire Media, LLC

Following someone’s ‘trade signals’ won’t make you rich.

I’ve never seen it happen.

I’m not going to beat around the bush.

You are the only one that can make your trading successful.

It’s a skill and a business, just like anything else.

If you put in the time and effort into the right material, then you stand a darn good shot of achieving your goals.

–Tim


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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”