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Millionaire Mentor Update: Win or Lose, Do THIS

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Written by Timothy Sykes
Updated 1/31/2023 14 min read

Win or lose, you can learn from every trade. No matter how long you’re in this game, you can always get better. But THAT means putting in the time to review EVERY trade.

How often should you review?

We’re all different. I’d guess that most of my top students review their trades on a daily basis. But at first, you might need to review your trades right away.

I’m not saying get stuck or attached to a trade. “On to the next …” is a good mindset, especially for experienced and consistent traders. But remember: win or lose, the lesson is more important than profit or loss.

Keep reading for three ways to increase your knowledge, win or lose. But first…

Giving Back: An Honor and a Duty

You may already know I donate 100% of my trading profits to charity. Some people wonder why I post about my donations on social media. They say, “Tim, just donate quietly. Why do you have to brag about it?”

First, it’s not to brag. It’s to bring attention to important issues and the charities trying to help. Here’s an example…

Warning! Graphic Images: Some people may find the following content disturbing or offensive.

 

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A post shared by Timothy Sykes (@timothysykes)

That’s why I share — to help spread awareness. Enough is enough. But only when enough people join together and say it, will things change.

Want to help? Follow Karmagawa on Instagram and visit our sustainable merch shop here.

Let’s talk trading…

Trading Mentor

Win or lose, you need to learn from EVERY trade. In the heat of battle, it might seem difficult. After a win, you get that rush. After a loss, there’s a little sting. If it’s a big loss … you feel downtrodden.

For new traders, there’s nothing more important than reviewing your trades. If not immediately, then at the end of the day. Learn from your wins AND your losses.

Losses Are Part of Trading

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“I never lose. I either win or I learn.” — Nelson Mandela

I love that quote. But you need to understand that you will lose. Losses are part of the game. And most traders take big losses at some point. The key is to keep refining, keep improving, and keep getting better.

So take the spirit of Nelson Mandela’s quote and apply it to your trading journey. Your goal is to see each loss as a part of your education.

That’s why I’m so transparent about my trades. In an industry full of fakes, I share all my trades here. Learn from them. Don’t just study wins — pick apart my losses. If you’re new, spend more time on the losses than the wins.

Since we’re focused on learning from wins and losses, this week’s trade review shares one of each.

Trade Review: Win or Lose, Find the Lesson

To make it fun, I’m sharing last week’s biggest win and biggest loss in dollar terms. Notice where I was right, where I was wrong, and how I managed risk.

Ignite International Brands, Ltd. (OTCQX: BILZF)

Ignite International Brands is Dan Bilzerian’s CBD company. In September 2019, I traded BILZF during my annual conference. The stock spiked after Bilzerian posted about being able to invest in his company in the U.S. It was a perfect first green day setup.

BILZF has been on my radar ever since. And to be honest, I wasn’t sure how the company would do. On January 19, the company issued this press release with positive earnings news.

And again, Dan Bilzerian posted on his social media accounts. But this time it was kind of an “I told you so…”

I traded BILZF a few times that day — both with my big account and as part of the Small Account Challenge.

Check out the BILZF chart from January 19–20, with my entries and exits:

BILZF chart: January 19–20, first green day with news — courtesy of StocksToTrade.com
*Past performance does not indicate future results.

As you can see, BILZF was already spiking by the time I got in. It was moving so fast I got in and out for a quick $1,758 win.* Then it started to consolidate. My original thesis was that it could spike over $1 if Bilzerian shared it on Instagram. That’s where he has the most followers.

When it didn’t immediately spike over $1 per share I was a little surprised. But it set up nicely for the breakout going into the close.

(*Please note that these kinds of trading results are not typical. Most traders lose money. It takes years of dedication, hard work, and discipline to learn how to trade. Individual results will vary. Trading is inherently risky. Before making any trades, remember to do your due diligence and never risk more than you can afford to lose.)

What to Do When a Trade Meets Your Goals

When BILZF started to spike during power hour, I took a bigger position. Again, it spiked so fast I decided to lock in partial profits with the goal of holding the rest overnight. When it hit all my goals, and more, I got out. The $6,610 win was my biggest of the week.*

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That wasn’t the last of BILZF for me. I rebought on a dip off its highs. But because it was already up so much, I sized down considerably. And THAT made it a comfortable trade for my…

Small Account Challenge

In January, I started another Small Account Challenge. Starting with $12,000, I teach new traders how to build a small account. The OTC first green day pattern is one of my favorites for small accounts.

It doesn’t always work, but the pattern is a good setup for anyone trading under the PDT rule. Why? Because holding overnight saves you a day trade. Just be ready to cut losses — or take profits — quickly when the market opens the next day.

BILZF was a solid OTC first green day pattern. It had volume, earnings news, and it was holding the breakout over the high of the day. It finished strong but gapped down at the open the next day. The $140 win saved a day trade, but it was a little disappointing.*

Let’s move on to my biggest loss of the week. Remember, you can learn as much or MORE from your losses.

Astro Aerospace Ltd. (OTCQB: ASDN)

Astro Aerospace is a flying car play that was spiking in sympathy to EHang Holdings (NASDAQ: EH). It was also a nice multiday breakout.

Check out the ASDN chart from January 21 with my entry and exit comments:

ASDN penny stock chart
ASDN chart: January 21 intraday, fakeout breakout — courtesy of StocksTo Trade.com

As you can see, the stock was up roughly 34% off its morning lows when I bought near the multiday breakout. I thought it could keep going — it didn’t. So I followed rule #1: cut losses quickly.

The –$914 loss was my biggest of the week, but it doesn’t bother me because I followed my rules. Also, I was on the right track. ASDN hit its high of the day about an hour later.

The lesson is that following your trading plan and rule #1 is KEY to long-term success. Yes, I could have held ASDN and made a profit. But what if I was completely wrong and it tanked?

Take comfort when you’re on the right track but get shaken out. Learn to adjust and adapt as the market changes. But NEVER hold and hope.

Watch this video to understand my thoughts on rule #1…

The #1 Trading Rule All My Millionaire* Students Focus On

(*Note: My results, along with the results of these top traders, are far from typical. Individual results will vary. Most traders lose money. These top traders and I have the benefit of many years of hard work and dedication. Trading is inherently risky. Do your due diligence and never risk more than you can afford to lose.)

I hope you watched the whole video. If that rule isn’t burned into your brain by now, watch it again until it’s a mantra. Then use it.

Win or Lose, You Have a Choice

What’s the choice? Gain knowledge or let the opportunity pass you by. That applies to most of life, but in trading it’s imperative. You’re playing catch up. The stock market has been going longer than you’ve been alive.

And there are traders out there who’ve been trading since long before you ever considered it. So you have to learn as much as possible every time you stop on the battlefield. Every single trade … And how quickly you learn the lessons is up to you.

So make a choice. Do you want to learn from every trade now or pay the price later? It’s up to you.

Here are three ways to increase your knowledge, win or lose…

Keep a Trading Journal

Start your trading journal today. Use it for every trade. Use it for paper trading on StocksToTrade if that’s where you are in your journey. Keep as many details as possible. Use Profit.ly, too. We designed StocksToTrade and Profit.ly to simplify the learning process.*

(*Note: I’m an investor in both Profit.ly and StocksToTrade.) 

As you grow, it’s key to…

Review and Refine Your Trading Process

Successful trading is NOT about how much money you can make the quickest. It’s about how much you can learn…

Learn From Trades That Don’t Go as Planned

Learn from a few of my losses to get a better idea of how to think about trading. Without stats, you have nothing…

Millionaire Mentor Market Wrap

Win or lose … the knowledge you gain every day depends on you. Will you find the lessons in every trade? Will you try to understand the overall market? Are you willing to be obsessed with learning?

Most traders lose because they’re unprepared. Will you be one of the winners? It’s up to you…

How badly do you want it?

Trading Education

If you’re brand new to penny stocks, start with my FREE penny stock guide.

Ready for more?

For all the basics, start your 30-Day Bootcamp today. It’s still only $79 … which seems crazy for what you get. (You get two bonuses — “Pennystocking Framework” and “The Complete Penny Stock Course.”)

Trading Challenge

The Trading Challenge is the most comprehensive trading education we offer. When you apply, come ready to study harder than you’ve ever studied before. Apply for the Trading Challenge here.

Are you ready to learn from every trade, win or lose? Comment below, I love to hear from all my readers!


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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

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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”