This week started with a ton of actionable plays.
Symbols like TPST, MNTS, and NKTX all had monster moves.
But despite that, I’m seeing many traders shoot themselves in the foot.
Sure, most of them lose money, and it’s easy to fall into the pitfalls.
But what if you could sidestep the typical clumsy mistakes and steer clear of them?
Not only have I made over $7.5 million in trading profits, but I’ve also mentored over 30 millionaire students.
There are five mistakes I see traders making in this market that are robbing them of potential gains.
I’ll tell you what they are and how to avoid them.
Table of Contents
#1 Getting Too Cocky
Think of trading like driving a car.
Just because you’ve had a few days or even years without accidents doesn’t mean you can start speeding and ignoring traffic lights.
Overconfidence in trading can quickly lead to reckless decisions, just as overconfidence on the road can lead to accidents.
You have to learn to approach every day like a new opportunity.
It also presents new challenges.
The best way to avoid cockiness is to objectively analyze your strengths and weaknesses.
Remind yourself of what you do well and what makes you money.
In addition, you want to review your mistakes. When you lost money, what was it that you did wrong?
Do you have a tendency to double down on losing positions?
Do you struggle when you size up?
Do you trade a specific setup better than others?
The market can and will humble you if you’re not on your A game.
If you ever get too cocky the market will humble you @timothysykes !!!! 🎯
— Kyle Page (@kyle_page9) March 2, 2022
#2 Forcing Trades
Trading is one of the few professions where you can “work” all day and have nothing to show for it.
But sometimes, doing nothing is actually the best thing you can do.
Because not every day is a good day for trading. Sometimes the market will offer you nothing.
Now, that doesn’t mean you do nothing on those days. Instead of trading, you want to spend that time studying, learning new setups, reviewing your trades, and developing your strengths.
It’s always better to wait for the right opportunities than just trading for the sake of trading.
You don’t get paid to trade…you only get paid when you win.
BORING DAILY HABITS PAY OFF THE MOST IN THE LONG RUN!
— Timothy Sykes (@timothysykes) October 16, 2023
#3 Not Being Prepared
It’s like baking cake without having all the ingredients ready. You’ve started mixing, only to find you’re out of sugar.
Anyone with a hi/low ticker can find the biggest movers of the day.
But you’ll need more than that to trade them successfully.
You’ll need to know why the stock is up if there’s a catalyst, and why it’s up or down on unusual volume.
In addition, you want to know its history…has it moved like this in the past?
Does it fit a current theme we’re seeing in the market?
I’m a big believer in trading price action, but I also am a big believer in being informed.
I’m not buying a stock simply because it sold off…I need more than that to pull the trigger.
11:11pm study/dream check, retweet/favorite this if you’re still up studying because your dreams are so big that you realize you need to study your ass off to actually turn your dreams into reality…HOW BAD DO YOU WANT IT?!
— Timothy Sykes (@timothysykes) October 17, 2023
#4 Trading Without An Edge
When penny stocks aren’t moving, I don’t enter into options trading or crypto…
Because I don’t have an edge in trading those.
I trade to make money. And before you jump on me for saying that, let me remind you that I donate all my trading profits to charity.
The more I make, the more get’s donated to charity.
That’s why winning is important to me.
Moreover, I’m trading to teach my students.
If I’m all over the place, how does that help them become better?
That’s why you’ll constantly hear me talk about many of the same principles.
Consistency is key…and very few things are more important than understanding your strengths and playing towards them.
You are more than what you've done in the past & you are FAR more than what your doubters/haters say you are. We are all evolving creatures & no matter your background or mistakes in the past, learn from it all to improve in the future & surprise everyone with your capabilities!
— Timothy Sykes (@timothysykes) October 14, 2023
# 5 Putting Profits Ahead of Risk Management
At the end of the day it’s not about how much money you make…it’s about how much you keep.
I’m one of the first to admit, I’m not a big trader, and I often trade like a coward.
And I sometimes get teased on social media for it.
But I don’t need to show flashy profits to validate myself.
I have over 30 millionaire students…who else teaching can say that?
The reason why I’ve made over $7.5 million in trading profits isn’t because I make big trades…it’s because I know how to protect my capital.
My number one rule in trading is to cut losses quickly…and for the most part…I’ve been pretty good at it.
On the other hand, most short sellers can’t do it.
They focus so much on being right…which they are most of the time…but less on managing risk.
For example, if a stock that’s squeezing goes from $2 to $20 in one day…and you shorted it at $4…does it really matter if it’s trading at $1 a few days later?
Most traders don’t have the capital to withstand a move like that.
And that’s why I’m constantly warning my students against short selling.
The risk vs. reward simply isn’t there anymore.
If you want longevity in this game…then you must focus on risk management first.
Like those who loved to #HODL in 2020/2021 had to learn the hard way, SO MANY newbies are taking excessive risks, whether shorting based on bad fundamentals/dilution or buying speculative runners like $LIFW $AVGR $EBET $NVOS too aggressively. Remember, it's GOOD to trade scared!
— Timothy Sykes (@timothysykes) September 21, 2023
Ready to Trade Smart? Avoid the Pitfalls! 📈
With monster moves like TPST, MNTS, and NKTX, there’s a fortune to be made… or lost.
Why do so many traders miss the mark? It’s often self-inflicted wounds. These five mistakes are costing traders their potential gains, but they don’t have to trip you up!
I’ve surpassed $7.5 million in trading profits and guided 30+ students to millionaire status.
Because we don’t just know the game; we master it. 🔥
🚀 Dive into the strategies that have bred success, not just for me but for dozens of my students.
🚀 Get firsthand insights, tailored to the current market’s wild ways.
🚀 Rise above the masses and anticipate market moves before they happen.
Are you set to navigate the choppy waters of the trading world, equipped with the insights from experienced traders?
Your map to masterful trading is just a click away.