Five Tips I Wish I Knew Before I Started Trading

– Here are five things I
wish someone had told me before I started trading,
I’m gonna tell you. (upbeat music) What’s up, Tim Sykes,
Millionaire Mentor and Trader here answering your questions,
I love getting questions. First, before I begin,
please click subscribe, click the little ringing bell so that you get notified
of my new video lessons. I’m trying to help you,
I’m trying to teach you, I’m trying to be the mentor
to you that I never had. A lot goes into every
single trade that I do, it doesn’t matter if I’m trading
big, if I’m trading small. I’m always thinking, I’m being meticulous, ahead of time before I
risk my hard earned money. So the first thing that I
wish I had known before I got started trading, I wish someone
had told me that it’s all about your planning, it’s
all about being meticulous. What is your goal for a trade? What is your risk? What is your thesis? What is the past performance like? What is the intraday chart look like? What is past one month, six
months, one year, two years? What’s the sector doing? What’s the market doing? What’s the floor? What time of day is it? You need to think about all of this stuff, this is all in my Trader Checklist Guide, I’m gonna post the link to that
guide just below this video, watch it, okay, be prepared. Lesson number two, don’t
focus just on the money that you could make,
always consider the money that you can lose, protect your butt because 90% of traders lose. I don’t want that to happen to you. Too many people get
infatuated with the potential and they don’t think
that they can be wrong, they get very narrow minded,
they have blind spots galore. So understand you can lose on any trade. So that should make you more conservative. Third thing I wish someone had
told me, cut losses quickly. I know this is my rule number
one, but I wish someone had told me this where if
a trade doesn’t go well, if a trade is going against
you for whatever reason, okay? Anything can happen, the
longer that you’re in a stock especially a volatile stock,
a volatile penny stock, the greater risk you have,
they might have good news, they might have bad news, they
might issue toxic financing, they might somehow do a good financing where they raise a lot of
money at the current price, which is a very big positive, something might happen
in the overall market, three out of four stocks
fall on the market. Rule number one, you cut losses quickly. That way you don’t have to think, okay? It makes it very mechanical,
you stay very disciplined. It’s very difficult to do
this though because you wanna make money but sometimes you have to focus on rule number one and you
have to cut losses quickly. Sometimes the best trade is a small loss, containing that loss, not
letting a small mistake turn into potential big disaster. The fourth thing I wish
someone had told me about, I guess I would say, singles add up. I wanted to be a millionaire
when I first got started, I think everyone wants
to make a lot of money even if you say oh, I don’t
wanna be a millionaire, I just wanna make an extra 50,000 but you still want money, right? Like you get into trading
because you want money. I wish someone had told me that the key to making a lot of money especially with penny stocks is small gains added up. Okay, it’s not going for home
runs, it’s not researching 5000 companies and trying to decide the one company that’s like
has the best technology. That’s like trying to find
a needle in a haystack, it’s not worth your time,
there’s terrible odds. For me, I want to take
small gains, $100, $500, $1,000, $2,000 on stocks
that are already moving. And I think that would be the fifth thing that I wish someone had told me about, focus on stocks that are already in play. With penny stocks you
don’t need to be first, is actually bad to be first
because you might be waiting a week, a month, six
months, a year, five years before the market
catches up and meanwhile, there’s opportunities
galore and you’re stuck in whatever stock because you’re like, oh, I’ve done the research, I’ve seen it. I’ve seen so many companies come and go. Even if you do perfect research, even if you know everything, something could happen
and the company will fail. Most penny stocks do
fail so focus on plays that are hot with news that are moving, that have a lot of volume
and that you can exit easily. I would not do any restricted
stock, I would not trade in liquid stocks where
there’s not a lot of volume where you can’t necessarily
get in or out very easily, stick with stocks that are
in play where there’s kind of like the day trader mob,
where they’re moving in and out of the play so you have a lot of volatility whether you
like going long or short. I’m gonna give you a bonus
one, six things that I think you should know, be willing
to go long or short, don’t just say, oh, this company is terrible, I will never buy it. Guess what sometimes
the most fundamentally screwed companies spike the
most because they have the most short sellers in them and
that creates a short squeeze especially what’s
happening in 2019 lately. Do not just say, hey, there’s
no way to make money in this, there’s usually a way,
there’s usually an angle whether you wanna bet on higher
prices or whether you say, hey, this is a scam that’s
being promoted by email and newsletters and once
the email and newsletter stop promoting the stock is gonna crash let me look for shares to short. Start looking for different
potential profit angles and there might not be
shares to short, there might be no profit angle but at
least start considering that. When I first got started
trading, I was not very flexible even when I first got
started teaching, I was like you have to do it one way
and over the past 20 years of trading now and 10
plus years of teaching, I’ve become very flexible
and very adaptable to whatever opportunities there are. I’m always thinking, is
there something here? Or is there a good setup with good odds? Sometimes they’re not, sometimes
the best trade is no trade but at least I’m looking
and if you’re always looking and you start seeing what
plays work, over time you start adapting to what works and
that’s what you need to do. This is all about a game of adaptation. How quickly can you adapt to moving stocks, to moving markets? And you find what you’re best
at but that’s a few lessons that I wish I would have learned. Leave a comment below this video. Let me know if any of these
lessons resonate with you. I’m curious, I’m trying to put myself back in my like beginner
mindset but you tell me what is something that
you’re having trouble with or something that you had
trouble with and you’ve overcome. Leave a comment, I’ll talk to you soon. Hey, Tim Sykes, Millionaire
Mentor and Trader. Thank you for watching my videos,
I hope that they help you. I wanna share everything that
I’ve learned over the years. You can check out more
videos right over there and also click subscribe
so that you can watch all of these videos, get that knowledge and become my next millionaire students. (upbeat music)

48 Replies to “Five Tips I Wish I Knew Before I Started Trading”

  1. Tim, what is my assurance that if I do this seriously and learn from you closely, I would be as profitable as your other traders? Do you do one on one teaching?

  2. My most worries about Timing, what time I should Enter and Exits the game. All your 6 tips are very useful and they keep reminding me of my priorities when I practice the stock market. Thanks for the video. Keep it up.👍🏻

  3. I used to think you made it sound too simple but the more I learn the more I realize that because you've mastered your trade you're able to make it sound simple. Keep up the good work!

  4. Patience is what I am currently having trouble with and am working to overcome, more often than not I’ll get into a trade and exit to quickly for a small loss or no gain or small gain when if I had just held for an hour longer I would be making ….well you know how crazy these low floats can be.

    Today I was in on $BNGO pretty close to the market open @1.26 /share and watch the stock go against me for what felt like 5 days, I knew I had support @1.10 so I was using that as my risk, it broke 1.10 and dropped to 1.05 that’s when my panic factor started to kick in, but I told myself “No, I’m right 80% of the time, if it cracks 1$/share I’ll get out for my biggest loss yet, let’s see where this goes”
    It quickly bounced from 1.05 to 1.67 where it got halted , I was out long before then @ 1.36 for a modest 9%

    Patience and fear I battle with these every day.
    Your interview with Tim G really helps a ton, the one where you two are drinking smoothies on a beach somewhere, Tim G said he had the same problem, more often than not he would be right so he started holding his positions longer, I’m starting to pick up on that and hopefully have that interview sooner than later!

    See you in like 980ish more trades Tim!

    —Jordan Reed

  5. Getting in and out of positions is the most difficult part of trading for me so far not following your instincts and second-guessing yourself causing me to miss trades extreme volatility is scary

  6. The cap’s shadow makes him look like he’s frowning😂 I’m glad I came across these lessons now before getting started👌

  7. When reviewing your trades for a weekly/monthly recap what key things do you track? Anything different than from Tim Grittani and his excel list? And how often do you review your trades? Monthly, weekly, nightly?

  8. I wish in 2017 someone told me Rule #1. I experienced and watched it happen from the news sending it up drawing in the hype and $$$ to the reverse split 6 months later providing that glimmer of hope as it slowly trends downward with a couple decent spikes to set that final hook before the long kiss goodnight. For the record, I never heard of Tim Sykes during that time. I know someone still in one of these as I post this. 45K in the red and he isn't rich. I lost 6K and got out.

  9. Just really starting to educate myself, I greatly appreciate this video as I literally just started reading some of Tim's information and watching his videos. So, I am just going to assume you made this video for me (lol) as I am getting started, tip my cap, and say thank you sir for the great information.

  10. I'm listening to your book American Hedge Fund. Man I thought I traded high risk. You were a real cowboy. Great listen (or read) for all traders.

  11. Thanks for the tips Tim. I know these "on paper" but I need to keep pounding them in my head and be able to take emotions out of it as much as possible. I need these to become an instinct if I'm going to get to where I need to be. Good video thanks I'm actually really grateful for all of your free content. Just know it doesnt fall on deaf ears 👍

  12. I’m having trouble adapting to market environments as far as being able to figure out which patterns are the best to use

  13. Learning to be patient, sitting on my hands. picking a sector to your liking or beliefs of future growth. Also to pay attention and treat the markets like a game of poker. I think it's important for individuals to really try to time entry or purchase of shares and to cash out if you are up. Also to not be afraid or worried of losses or dips or huge run ups..and to be happy with taking profits. Lastly diversify your profits and know the 8th Wonder!

  14. Awesome guidance and insight Tim. Many wisdom filled items. Thanks for taking time out of your busy schedule to share with us.

  15. I've found that adopting the castrated choir boy mentality has benefited me in my first few weeks of paper trading and I'll certainly be doing my best to keep to whats worked time and time again for at least your decades in the game Tim.

  16. Is the Trader Checklist still free? I watched the first one, and can't seem to find the link. takes me to the profitly signup page. And I no longer see the 12 or 15 part videos here on YT. Has something changed?

  17. I was having trouble with discipline. Following the plan, and cutting losses is very difficult for new traders. Instead of closing my eyes and cutting loses, I averaged down while hoping for the stock to bounce back so I can break even or make a profit. However, anything outside of the plan is gambling, and hoping which are both not apart of any good strategy and is counter productive to my growth as a new trader. I wiped my account recently, and I temporarily cut my trading career offline, but I am happy about it because this loss which I now realized will help me with my discipline so I never have to go through this again. I learned now that sometimes losing and wiping an account is good for new traders because it teaches them earlier on what will happen if you don't follow the rules. I don't know how long it will take me to recover and trade again from this huge loss, but I am 100% certain that my discipline will be in check once I get back on the horse.

  18. Having trouble with letting winners run!! Cutting losses isn't a problem though. Overcame FOMO a couple of days ago after reading disciplined trader and trading in the zone, both by mark douglas.

  19. another invaluable video as usual. I am happy to CUT LOSSES QUICKLY (or even bail if a stock won't move). it means that money is now available for a new trade. so the benefits are actually 2 fold.

  20. Awesome video Tim!! As usual, great advise. I wouldnt be the trader i am today without your wisdom! Hope i get to meet ya eventually!! Missed the last trader expo you just had down here in florida! Was pretty bummed!! Keep up the good work!!!

  21. I believe your rule on cutting losses quickly is very effective in the long run… shorting the upside is almost infinite.. and longs you can become a bag holder and risk crushing an entire large position due to lack of discipline calling it quits at 1-5% whatever you risk.

  22. I would like to start an online business currently I am 13 almost 14 and my mum has agreed to loan me some money to get started. How did you get started when you were younger. Could you give me some tips.

  23. My biggest problem is PATIENCE… but I thing with enough experience and study coming through, soon it will not gonna be a problem anymore. Thank you for being the best teacher! I have no questions, cuz you answer all of them in your DVDs and video lessons, which I am constantly watching every day! @tymothysykes

  24. grate bonus tip. agree. im having problems getting into a trade i have small account under pdt so im trying to maximize the 3 trades and want to make least 2 to 1 or 3 to 1 on my money. ill do the the charting an do diligence and dont enter the trade like a deer in the head lights an a lot of the trades end up going without me and was right about the direction in he end. im good about not chaseing them but its just so frustrating

  25. I still don't think I'm ready still reading your book and getting ready to deposit some funds into an account, That cutting loss is a good one!

  26. you are very helpful, thank you for all of your insight. I signed up under you on instagram and will start to follow you on here as well

  27. I've been studying the indicators and profitly categories, and what's resonating with me is making sure i plan perfectly and get into a hot play

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