Here’s What To Do Before You Start Trading


– [Tim] Hey everyone, lead
trader with Stocks to Trade Tim Bohen here. Here with Trading with the Tims, I think that’s the name
we settled on, maybe? But here with Tim Sykes,
millionaire, mentor and trader. What we’re doing in these
videos is just kinda going over your questions. We would like to, you know,
there’s so many new traders or people that are interested, and they’re kinda intimidated. You know, there’s thousands
of books on Amazon. There’s all these instructional materials, where to get started, so we
like to be open to any question. If you like what we talk about today, or if you want to know
more, just comment below. We’ll take any question,
anything’s on the table. – A lot of you ask me, you
know, what should I start with? Everyone’s different first of all, you can obviously just study
these free video lessons. You don’t have to trade at all. – Yeah, you can paper trade with stock. – But if you were to open an account, what would you say is a good number? – Well I mean I think it,
obviously like you said, varies for everyone, but
I think you can learn, and you can get better, and
you can build an account and build your knowledge account. I don’t want to steal
your copyrighted title. – Trademarked
– But, as a new trader… You’re not trying to
make bank, bro, today. I love that, you know but,
you’re not trying to double, triple, quadruple your account today. You’re trying to learn skills today for next month, for next year. So I think two or three thousand dollars, you can buy 500 shares of a $2 stock. You can buy 1000 shares of a $2 stock. You can get started trading
these patterns, and remember, I talk about the rule of ten a lot. You can buy, you know,
ten shares of a $50 stock. These stocks skip big moves,
so couple thousand bucks I think is good to learn with. Now, do not expect that you’re going to make a million dollars next year, start with a $2000 account. It’s not realistic. But that’s not your goal as a new trader. – The money that you make or lose in the beginning is negligible. It’s irrelevant. It’s all part of your market tuition. – I talk to people all the time. I want to see entries
and exits on a chart. You know, which stocks you
trade in the training program. They’ll come to me and they’ll be like, ‘Man I only make 50 bucks on this trade.’ And I look at the chart and I’m like, ‘You took a dollar a share, on a $2 stock. ‘I don’t care if you only made 50 bucks… – Good trade.
– ‘Because that’s ‘a great trade.’ And now, a year from
now, two years from now, once you build your account, you size up. That’s a $5000, $50,000 trade. – That’s the thing, you want
to learn with a small account. In the beginning, get
used to the volatility, get used to the patterns. If you buy, let’s say,
500 shares of a $2 stock, that’s $1000 right? Let’s say you have like a $3000 account. So you’re using a third of
your account on a $2 stock. 500 shares right? Let’s say that stock is, I
don’t know, a billionaire play. Like a new billionaire
just invested in it, that’s usually a good catalyst. Or an earnings win,… – Marijuana, CBD…
– Or a new product, something Let’s say this stock, you
think can go to three. But you buy 500 shares
at two, even if you think it can go to three, it
goes to 2.50, you sell! You lock in that $250. Your $3000 account goes up nearly 10%. Not big money, but good practice, a good part of your experience. Now fast forward let’s
say ten years from now. When you have that same kind of setup, and ideally you have a bigger account. And you don’t just buy 500 shares, let’s say you buy 20,000 shares. And you make the same
exact, .50 cents a share, maybe a little more, but you know, ten years from now you
have a lot more experience. Let’s just say you made .50
cents a share on 10,000 shares. That’s $5000. So the $250 that you made now,
it might not seem like a lot. And maybe you won’t even make
$250, maybe you make $50 now. But what can you do today, this
week, this month, this year, that will put you in position
to make the same trade with a bigger position
size a few years from now? – Yep.
– How much can you practice now so that you’re fully prepared. You don’t want to not have any experience, and then ten years from now you’re still taking
picks from somebody else. You’re not self-sufficient,
and you have more money, and you don’t know what to do. You want to practice as soon as possible. So, if you want to start with $2000 in your account that’s fantastic. If you want to start with
$3000 that’s fantastic. – And I actually…
– Start with $500, it doesn’t matter what you
do, just start right now! Start studying. Start getting the experience. – And I think the constraints
of a small account is a good thing as well. I mean, force yourself to be disciplined. Because if you’ve got that $2000 account and you’re letting that loss run, I would much rather see you
losing that on a $2000 account than a 20 or a $200,000 account. – Exactly…
– I think… – Your back is up against the wall. – Exactly.
– You don’t have a choice. – And it forces that discipline, because you’re looking at that number, and you’re looking at your account size, and you’re like, ‘I do not wanna be in this
losing trade anymore.’ So that is so much more important when you’ve got that small
account versus the big account. Because we’ve seen it. We’ve both, I’ve been around 12 years, you’ve been around 20. So many of these guys, and gals sometimes, make these huge sprints
and then they disappear, because they never were
constrained by that small account, and the discipline that follows. – Too many people want
success too quickly, so we try to change your mindset. Have patience. Trust me, we want you
to make a lot of money, but you got to make money the right way. If you’re too aggressive
you say, ‘Screw these tips. ‘We’re just going to bet big now. ‘I want money now.’ You’ll likely lose it. We’ve seen a lot of
traders bet big, go big. They say, ‘Screw your
conservative approach.’ Then six months, nine months
later they lose it all. – Yep. – They lose 50%. They get
very introspective on Twitter. What I did wrong, and all this stuff. If you just listen to us in the beginning, you wouldn’t have those problems. You’d build a nice
informational experience. You know, a base foundation. Think about it like that. If you want to build a building,
and I’m not an architect, but if you want to build
this tall skyscraper you don’t start at the top, and start building the 86th
floor up to the 100th floor. You have to build the foundation first. – Yep. – You need a trading
foundation, so start studying, start small, get under the PDT rule. Some people say, ‘What
do you think about this?’ The PDT rule allows you only three day trades per week, under 25,000. So some people say, ‘Okay
Tims, we know that you say ‘to start small, but shouldn’t
we start with over 25,000?’ My answer is no! Three day trades per
week is more than enough to focus on the best plays, and you can hold the stock overnight. It’s not three total trades per
week, it’s three day trades. – And I, yeah, I 1,000% agree. Because if you’re new, and
you’re trading more than that, your odds of success are terrible. Something about trading that
so many don’t understand is more is not better. Typically less is better. And if you’re like, ‘Wow my path to success is
making ten trades a year?’ Or ten, sorry, ten trades a day. That is not your path to success. You want to set there, again
back to those constraints. I think that’s a powerful thing. Where you’re like, ‘Hey I only have three trades
in a rolling five day period. ‘I have to not trade some mediocre setup. ‘I have to find a stock
that’s breaking out, ‘that’s an earnings winner,
that is ran in the pass, ‘that’s maybe a low float,
that’s also in a hot sector.’ So now I just listed five reasons that make this a good trade. That’s something I want to make versus okay I’m just going to throw
stuff at the wall today. – Yeah so we want you to get experience, but you have to wait for the good setup. You have to wait for multiple indicators to be in your favor. If you’re just practicing,
getting experience, every day trading random
stuff, that’s not experience. – If anything it teaches bad habits. – It’s bad habits. It’s going to frustrate you. It’s not going to make
you money now or later. You’re going to come away, as
so many people do in trading, ‘Oh trading is so hard.’ Trading is hard if you don’t pay attention to what actually works, okay? If you’re just trying
everything you’re like, ‘Well you said to experiment.’ Experiment using our guidelines okay? We share this stuff with you
to speed up your journey, not to confuse you, and
not to discourage you. If you learn from, let’s say a newbie, someone who says, ‘Oh
I made all this money.’ But they haven’t
experienced other markets. – Right. – Maybe you make some
money in the short term, and then you’re very
crushed in the long run. We don’t want that. The biggest money that people will make, year five, year seven, year ten, year 20. Okay that’s the mindset, that’s the kind of patience
that you need, frankly. Maybe it’ll happen sooner. That’s beautiful if it does. If there’s another big market run, if another hot sector takes off, but start thinking about
what can you do right now to put yourself in the best
position decades from now. And even though decades sounds far, if you put in, let’s say an hour a day, of studying our video lessons and webinars you have what, 1,200 webinars? – Yes. – 1,200 webinars, I have over 1,000. If you’re watching this
stuff, it’s so so useful. And I know some people will be like, ‘I don’t want to watch it. ‘It gets so repetitive.’ It’s good when you see
that it’s repetitive. This is not freaking rocket science, okay? You’re not learning formula,
after formula, after formula. You’re learning very basic
system to trade with, and you’re seeing example,
after example, after example. Some people say, ‘Well how do
I get confidence in a trade? ‘How do I get confidence in a pattern?’ If you see the same
thing happening 50 times, you start saying, ‘Oh what’s
going to happen on time 51?’ If you’ve only seen something
happen once or twice, how are you going to get confidence? You can’t have confidence, because you haven’t studied enough. Studying and preparation
helps you get more confidence. Experience is the best tool, but if you’re watching this
you’re probably just beginning. It’s okay, you don’t have experience. Learn from our experience. Learn from years and
decades of our hard work. That’s how you play catch-up. I have to go give a podcast right now with Eventual Millionaire. I’m multi-tasking like a mothertrucker. Tim Bohen is going to go shave his head, because he grows more
hair like every hour. But leave a comment underneath, what you think about this video. I joke a lot, I kid, get over it. Some of you guys are too uptight. Screw you. Those of you guys who
are laughing, fantastic. Welcome to the club. Leave comments below. – Yeah let us know what, you know we talked about
account size in this video. You can get started with a small account. You know focus on those constraints. Focus on good charts. Focus on good trades. And again comment below, let us know the topic
you’d like us to answer. (upbeat music)
– Hey Tim Sykes, millionaire, mentor and trader. Thank you for watching my videos. I hope that they help you. I want to 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 student.

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