Timothy Sykes Lesson 3 Homework

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I have SO many students who are profiting big time right now by trading part-time , as I outlined in this video lesson:

…anywhere from $5,000 to $10,000 per month all the way up to my top trading challenge student turned teacher with this must watch guide featured here who has made $500,000 the past month alone!

Download the key points of this post as PDF.

Whether they have a small accounts or a large one, my top trading challenge students who often are trading part-time have been on fire with plays galore, and one student in particular who really showed his dedication at my Orlando conference 3 months ago with great tweets like this:

…and who ended up taking the rope I brought out to symbolize what you must do to yourself to prevent overtrading (tying yourself up helps big time to prevent you from trading)…

…has really come into his own the past few weeks, surpassing $50,000 in total profits and making over $20,000 the past 3 months since my conference, even while trading just part-time

1. Cut your losses quickly:

I know we have all heard It before, but as cliche as it might sound, cutting losses quickly is my number one rule. When I first started trading and I was trading part-time I blew up an $1800 account to $40 on a hold and hope strategy. The moment I gave that up I was able to live to trade for another day. (Sykes comment: this has always been and always will be rule #1 for me)

2. Aim for singles not home runs:

One conversation that I had with Roland Wolf when I meet him in Orlando was that I was having a hard time taking “big profits”. He said something so simple, yet so effective. The Wolf advised to “look for singles not home runs …take a few of those, and those singles start to add up” since then, 100 has turned into 200, 400, 500 per trade. (Sykes comment, just as I outlined in today’s video lesson here)

3. Always set risk to reward:

I never take a trade without defining my risk to reward first. Before entering a trade, I focus on what I am losing before I focus on the potential gain. This deters me from developing a biased view to justify my entry, when the chart is screaming, “stay away!” (Sykes comment: having a plan and then sticking to that plan is crucial to success)

4. Trade with an edge

When you trade with an edge, a lot of the noise goes out the window. Focusing on patterns that work for your personality, will make your trading a whole lot easier. This is especially true, if you find trading overwhelming. (Sykes comment: Yesssssss, you must fight the urge to trade all the time and only enter trades where there is solid risk/reward)

5. Study Diligently

I’m notorious for studying every chance I get. Whether I’m at home, driving or at work, I will find a way to study. Now I’m not saying you should jeopardize your job by studying, but I will say that if I’m scheduled for an 8 hour shift, I’m studying 7 of those hours and when I get home I’m studying as well. Dont forget to take full advantage of the weekends.  That’s when you need to be studying the most. (Sykes comment: start with this free penny stock guide)

6. Treat trading as a marathon:

Personally, I think a lot of beginner traders are focused on getting to the big bucks as quick as possible. I know that as long as I consistently work on my self as a trader, I will get there no matter how long it might take. Malcom Gladwell is a phenomenal author and I had the opportunity to see him speak on “What it takes to become a master?” Gladwell stated that “it takes 10,000 hours to be considered a master”, so if you study racking up 4 hours here, 8 hours there, 10 hours there, eventually you will get there, especially when the only thing we know that will happen is time will pass. (Sykes comment: YESSSSSSS, read this key blog post to reinforce this)

7. Trade with zero emotion:

I trade with zero emotion, whether I’m up or if I’m down. Keeping your self emotionally disconnected from your trades allows for you to put on the next trade with ease and without cause for vengeance if wrong before. I’m not here to trade for the thrill of being right. I’m here to trade my edge and repeat that until I have to develop a new one (Sykes comment, trading with rules like those listed HERE and HERE are essential to your success)

8. Read:

Reading for me was always boring, until Tim mentioned his favorite book “Reminiscence of a Stock Operator”. I took the leap, and found that the plunge wasn’t bad at all . I finished that book before the weekend and then I read Tim’s book “An American Hedge Fund”, which got me so pumped about making money, that I picked up another and another, to the point where I’m reading a book a week and an audio book every other making it to 6 books per month. (Sykes comment: See our library of great stock market books here)

9. Trading Buddies:

I can’t tell you how important it is to have friends that are traders. It will make your trading so much easier in the long run. So many times I have found my self talking to the wrong person about penny stocks to hear them tell me that “its to risky you’ll lose everything”, or to hear them say what penny stocks do you invest in completely miss the point I was trying to express to them. Having buddies that you can talk about penny stocks till your blue in the face, is crucial to your development as a trader, especially when they have helped you along the way. (Sykes comment: EXACTLY why I created my trading challenge– to form a community of like-minded individuals who can learn in a positive environment)

10. Don’t over-trade!

I happen to look at “the rope of over-trading” every time I place a trade. It stares me down and constantly reminds me that all your hard work can be taken away from several misplaced trades. When You have emotion behind a loss, you can most certainly get caught up in pressing and revenge trading which is deadly to an account. (Sykes comment: Agreed 100%, patience is key, think of yourself as a retired trader and only come out of retirement when there’s a play that’s so good that you would feel guilty missing it)

This entry was posted in Testimonials and tagged Testimonials on by Timothy Sykes.

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Who doesn’t want to get rich?

Many believe that to get rich, you’ve either got to win the lottery, receive a windfall inheritance, or do something illegal (more power to you if you receive the former two; I don’t suggest the latter). Getting rich isn’t possible, we’re told; rather, if we scrimp, save, invest conservatively and wisely, and then maybe, just maybe, we might save our way up to millions over time.

Want to be rich like me? Then check out these 10 tips!

If you don’t foresee a windfall and don’t want to wait an entire lifetime to possibly maybe get rich, then it’s time to set your mind to making millions in a smarter way. By adopting these habits and following these tips, you can help streamline the process to becoming a millionaire…like my top millionaire trading challenge students and I have: Continue reading →

This entry was posted in Basics, Hard Work and tagged Basics, Hard Work on by Timothy Sykes.
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