You’re In The Trade, Now What?

By Updated on July 3, 2023

You’re In The Trade, Now What? Thumbnail

I was profiled on Business Insider over the weekend:

Source: Business Insider

In the interview, I discuss the components of my Trader Checklist and how I use it to make better trading decisions.

If, for whatever reason, you’re having difficulty reading the BI piece, I recently wrote about how I use the Trader Checklist Calculator to analyze setups…which can be found in this blog post here. 

Today, I want to take it to the next level. And that’s talk about what happens once you’re in the trade.

More specifically, how to manage risk.

You see, at the beginning of your journey, it’s all about capital preservation.

The chances of you making money in the markets immediately are extremely slim.

That’s why risk management is so CRITICAL while you’re studying.

Here are six of my top risk management rules.


Rule #1: Cut Losses Quickly

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Many of my top millionaire traders don’t trade like I do. Some of them, like Mark Croock, have become excellent options traders…others like Matt Monaco, have dipped into cryptocurrencies…and then you have a handful focusing on short-selling.

I bring this up because finding your niche in the market takes time.

You’ll have to experiment and try new things. And in the beginning…EVERYTHING is new.

Instead of focusing on making money…a better goal is to focus on learning.

And when it comes to your trading…you must cut losses quickly.

In my opinion, it is one of the best ways to survive.

I’ve been consistently profitable for decades and amassed millions in trading profits…it wouldn’t be possible if I didn’t follow my number one rule.

Rule #2: Aim For Singles

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If I cut losses quickly, I don’t need big winners to stay profitable.  I often want to capture 5% to 20% on my trades.

Rinse and repeat.

From my experience, small winners add up.

Is this style of trading sexy?

Absolutely not.

But it’s hard to argue with the results.

Rule #3: Don’t Fall In Love With A Trade

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Penny stock promoters make people believe these companies will change the world and that investing in these stocks is like getting in on the ground floor of Amazon or Nvidia.


The majority of these companies are absolutely trash.

They usually want to pump the stock up to make an offering to raise capital. They raise capital, diluting shareholders, and the average investor is left holding the bag.

That’s why  I never look at these stocks as investments.

They are purely speculative short-term trades.

And while I’m an optimist. When it comes to trading penny stocks, I expect the worst out of them.

Rule #4: Don’t Use Stop Orders

how to read earnings reports why traders look at earnings announcements
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I am not a fan of stop orders.


Because the stocks I trade are volatile.

You can set a stop and get filled several levels below it.

The slippage can be absolutely nuts.

I would rather sit, watch, and manage the trade while being present.

Of course, I am always traveling, which makes trading slightly more challenging.

But if I know I have to hop on a plane or know I will be in an area with no WiFi…I will bail from the trade.

If you’re going to trade…be present.

Don’t rely on stop-loss orders to manage risk, you’re likely to be disappointed.

Rule #5: Don’t Be A Scalper

The world is a beautiful place.

Why would you want to be in front of your screen all day, scalping for a few pennies?

On most days, I will take 1-3 trades.

But I know some traders will take 10-15.

It’s crazy.

There aren’t that many good opportunities out there.

And scalping can create some horrible habits and outcomes like:

  • Overtrading
  • Decision fatigue
  • Getting triggered after a loss
  • Revenge trading

I’ve always found it best to focus on A+ setups like my Weekend Strategy.

Last Word

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Trading can be extremely overwhelming in the beginning.

But remember, you are in control.

I suggest easing into your learning experience.

If you want to avoid some of the biggest and costliest mistakes newbie traders make, I highly suggest you check out this video. 


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Comments (1)
Author imageTimothy Sykes
Hey Everyone,

As many of you already know I grew up in a middle class family and didn't have many luxuries. But through trading I was able to change my circumstances --not just for me -- but for my parents as well. I now want to help you and thousands of other people from all around the world achieve similar results!

Which is why I've launched my Trading Challenge. I’m extremely determined to create a millionaire trader out of one my students and hopefully it will be you.

So when you get a chance make sure you check it out.

PS: Don’t forget to check out my 30 Day Bootcamp, it will teach you everything you need to know about trading.

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