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Trading Tips-Tim Sykes Penny Stock

What You Must Do After Every Trade

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Written by Timothy Sykes
Updated 1/10/2023 12 min read

There’s something you must do after every single trade. What is it?

Always review your trades — and other people’s trades. Here, I’ll show you exactly how my students and I use trade analysis to help us trade smarter…

My Trading Challenge students get it. And they continue to do the best of all my students.

It’s because they have access to all the video lessons, DVDs, and especially the webinars. Nobody else gets access to all the webinars.

But it’s also because they break down every trade.

How to Analyze Your Trades

Tim Sykes studying and trading
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Most people know that my go-to is Profit.ly. I created it for traders to share every single trade. I also did it to add transparency to this industry that’s full of fakes. And traders can use it to track and verify every trade.

There are so many fakes who love to lure in newbies with big claims of epic gains. I don’t want to see month-end or year-end BS statements. I don’t want to see a screenshot of some big gain.

I want to see EVERY trade. Sharing losses and being honest with yourself — and an entire trading community — can be a key way to improve.

It’s not a coincidence that Profit.ly isn’t as popular as it should be. People don’t want to show the ugly side of trading. For example, when they screw up or take big losses. But it’s real.

Profit.ly tracks every trade. It also calculates statistics for you. Enter your entry and exit price, the number of shares you traded, and your thoughts on the trade … Profit.ly does the rest.

You can see your win and loss percentage, an average dollar and percent gain, and your win-to-loss ratio.

It also tracks other statistics you might not even think of …  Like your biggest win compared to your biggest loss or your max consecutive days of wins and losses. You can even check your win rate by day or month.

So maybe you’re terrible at trading on Mondays. If you know the stats, you can stop trading that day. Or figure out why and do something about it. Or you can use that day to study instead.

Review your past trades regularly. Yeah, you could do this all by hand … But trading is hard enough.

More Reasons to Track

When I share my trades on Profit.ly, I include entry and exit comments and my goals for the trade. All my trades go out to subscribers as real-time alerts.

I analyze my trades by creating video lessons. I go over my recent trades and review what I did wrong and right. Sometimes talking through the trade out loud can give me more insight into my thought process.

Some of my top students create video lessons and trade recaps too. One of my top students, Mark Croock,* recently posted a lesson about the importance of reviewing trades, especially when you’re in a slump.

He had some recent losses. But he turned it around by analyzing what he was doing wrong. He was losing discipline, forcing trades, and getting bad entries due to being impatient.

Needless to say, you can learn a lot by studying what my top students and I do, but what’s happening with YOUR trades?

If you’re struggling with your trading, first, ask yourself this…

What Are You Good At?

Midwest Traders
© Millionaire Media, LLC | Dominic rises for a shot over Jack while Tim & Michael look on

My answer probably won’t surprise you here…

You need to go back and review your trades.

This is what every top student does. They analyze every trade. It’s critical to being a self-sufficient trader.

You have to keep a record of every trade you take. Even if you’re just paper trading. That’s how you figure out where you excel.

If you want to find consistency, you need to know what setups work for you … and then stick to those setups. Refine your process and stick to what works. It’s not the same for every trader.

So how do you find out what you’re good at?

Try Different Strategies

There’s no one right way to trade … The important thing is to keep learning. Always.

All of my most successful students tried different things and had losses in the beginning. And some of those losses were big…

Tim Grittani blew up his first $1,500 account. He’s now closing in on close to $10 million.* Sometimes the key to success is to lose at first. That way you learn what not to do.

It’s rare for traders to find success early on. If they do, it may be because of luck. They hit the right sector at the right time. But too often they learn the wrong lessons.

Maybe they started out when there was a hot sector, like Bitcoin or pot stocks. They get used to having stocks in play every day. Then when the hot sector’s gone, they give back all their gains by overtrading.

You can’t rush the learning curve. And you can learn a lot from your losses. Losing small can be key to learning what not to do.

Your only goal should be to find what works for you and what makes sense to you.

And throughout your career — from day one until your last trade — you’ve gotta…

Keep a Trading Journal

Track every single trade in a trading journal. How you track those trades is up to you. It can be via Profit.ly, a spreadsheet, a notebook, an online doc, etc.

Track everything. Your trade thesis, your entry and exit, and the pattern you were trading. Was the trade a win or a loss? What was your mood? What time was it? What went right or wrong?

It may sound like a lot … but it can help you understand your own patterns and rhythms. You can start to understand what really works. It’s all part of the process of learning to trade.

Don’t trade like a degenerate gambler. 

If you don’t know what pattern you’re trading  — you’re gambling. Stick to patterns you can identify. It can make it easier to figure out which ones suit you.

Turning Losses Around

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Top students can help turn their losses around by analyzing what they do wrong. Some take heavy losses when they’re new to the markets. It’s a process and it takes time.

Not everyone has the patience to stick it out. Some whine and complain or blame penny stocks and my strategy…

Most traders lose because they lack discipline and they don’t prepare.

Maybe they chase too much. Or they ignore rule #1 and don’t cut losses quickly.

That’s why I tell new students it takes time and dedication to succeed … and a lot of studying. Don’t start trading thinking it’s easy money…

You will lose sometimes. Every trader does. Let’s look at an example…

My student Kyle reports being up $140K.* In the beginning, he reports he was down about $20K.

When he started turning his losses around, he started over with a new Profit.ly account. You can check out Kyle’s profit chart here.

Some people might think he’s not being transparent by deleting his old account. But he’s not trying to hide his losses. In his mind, he needed a fresh start.

You can do whatever works for you. I want students to learn and find consistency. But it takes time and dedication.

Learn from your mistakes. And remember, it’s a marathon, not a sprint.

Let’s look at a recent trade so you can see how it works…

Lessons From a Recent Trade

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Here’s an example of how I analyze and learn from my trades … Recently I took a small loss on CytoDyn Inc. (OTCQB: CYDY). I was trying to dip buy a morning panic, but I was early.

Eventually it did bounce — 40%. I’m not saying I would have held for the full 40% even if I timed it well. But I was on the right track.

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Here’s where analyzing trades is so important…

Trading Is More Than Wins and Losses

Frankly, I kinda forced the CYDY trade. I was giving a live webinar. I wanted to be the hero…

I know I shouldn’t think that way. I know I should have patience. And I always tell students to wait for the trade to come to them.

In my defense, I was trading from Japan. It’s not my favorite time-zone. (It’s actually one of my least favorites.) I was tired, giving a live webinar and…

… it was a third red day for the stock.

Typically, the panic on the third red day is weak. So when it showed signs of bouncing, I bought thinking it might go red to green on the day. That wouldn’t be a huge bounce, but enough to be a profitable trade.

But in this case, it turned out to be the biggest panic. I bought WAY too early and the initial bounce was weak.

I sold half my shares for a small profit. So there was an opportunity to make money but I took too big of a position. I couldn’t get out of the other half. And as it kept falling I chased it down.

As I often say…

You Get Bloody Trying to Catch a Falling Knife

When it did bounce later, I didn’t want to get back in after taking a loss. It just shows you how losses can affect your mentality. So I learned my lesson. I rushed it. I should have waited for the trade to come to me.

After my loss, I made a video lesson to analyze the trade. It helps me to review my trades with my students. And if I can help students avoid these mistakes, it’s a win for me.

A lot of my students, including Jackaroo and Mark Croock, caught the bigger bounce.* Congrats to them. I love to see students trade better than I do!

Conclusion: Learn From Successful Traders

Jack Kellogg, Dominic Mastromatteo, Kyle Williams, Timothy Sykes photo courtesy of Don Mash
left to right: Jack Kellogg, Dominic Mastromatteo, Kyle Williams, Timothy Sykes – courtesy of Don Mash

I encourage all new students to look through the verified trades of the top students on Profit.ly. Read the comments to understand the reasons for the trades and why they did or didn’t work.

Then hone everything you learn into your own strategy that you can rinse and repeat. It’s not easy and it takes time. You can’t rush it. If you do, you’ll probably screw it up.

Join my Trading Challenge to learn how you can be a better trader. Get access to all my video lessons and DVDs. And the webinars. It’s a great way to learn from top traders…

There are over 1,000 archived webinars by me and my top students. You can learn from traders like Tim Lento, Mark Croock, Tim Grittani, and Michael Goode. The webinars can be incredibly useful, whether they’re live trading or Q&A.

Trading is not an exact science. You have to find what works for you. But you can learn from other traders’ journeys.

[*Note that these results aren’t typical. These students put in the time and dedication and have exceptional skills and knowledge. Most traders lose money. Always remember trading is risky … never risk more than you can afford.]

Be honest … Would you stick with trading if you had HUGE losses at the beginning? Leave a comment and share your thoughts!

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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”