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)

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