How to Pick A Trade: Best Practices for New Traders

– Thank you. Welcome everybody, how’s it going? Yeah! Who’s excited? Who’s excited to be here? I’m pretty excited. I love this. I don’t know, I had a heckler yesterday but I don’t know if he’s here, I don’t know if he’s out on bail or not, I hear he has some problems with the law, I can heckle back now that
I found out who he is. We’ll post a video if you
follow me on social media. I like to post everything. I just go with it. I don’t mean to make enemies, I just somehow do with my big-ass mouth. But I also wanna teach you. I’ve done very well in the markets, I’ve turned a few thousand
into several million. I’m actually flying to Asia tonight because I’m building schools everywhere. I have two new schools opening, this will be school number 48 and 49 with my charity foundation. And it all comes from successful
investing and trading. Not, you know, long shots, looking for a spec of gold or oil or some weird crazy
mineral I can’t pronounce in some country that is probably
just gonna give me malaria. A lot of these things that
you’re hearing at this conference and in investment and on
Wall Street in general, are just such long shots,
such bull guessing games, you’re just not gonna get rich. I don’t mean to shot on people’s
life work, but I’m sorry, I’ve just been around for 20 years, I’ve seen so many pipe dreams. Even the best laid plans can fail. So how do you actually
choose the best investments? Here’s my legal disclaimer,
I’m not a professional, at all, I’m just a random
guy, telling you what I know. I don’t even own a suit. I hear, you know, suits
are the new thing to wear but I’m going to a place
that’s 80 freaking degrees out tomorrow so this is
literally the coldest stuff that I have. With thousands of potential investments, how do you actually narrow it down? There’s actually millions
of investments but they’re, I think there’s thousands of investments here in this room alone. How do you narrow it down? You know, everything sounds so good, the CEOs will only say
the most positive stuff, the promoters will say
the most amazing stuff, in exchange for 400000 unrestricted shares or off-the-book shares, or
some crap, shot like that. For me, I’m never gonna be a 100% perfect. This is my profit chart
over the past 20 years and if you look on the right, or if you just look online, you follow me on Timothy Sykes, I share all this stuff publicly. I’m right about 70% of the time. So I’m wrong about 30% of the time. How did I get rich, how do I stay rich? How do I get richer? I cut my losses. Very, very important, I
am not sticking around if something’s going wrong. If something even looks to
be going wrong, I talk fast, I trade fast, I think fast, I act fast and that way I don’t get damaged. Once upon a time I believed
in some of these pipe-dreams and these companies and
I lost $500000 plus. It wisened me the freak up. I don’t wanna lose $500000 plus anymore, it sucked for several months. It created a drinking problem. It kinda ruined my reputation. But it was a good lesson and
I’m grateful for the big loss because now I trade, you
know, I’m scared as shot when I trade. If you become one of my students, you’ll see I trade overly
scared and this hurts me from making such big gains like I used to but I’m also living a
rather stress-free life. I think that you guys should
focus less on company stories and more on price action. I was on a panel last night
with some very big legends and they’re talking about the world ending and doomsday and gold going
to 5000, and I was like, “well if gold is gonna go to 5000, “why can it freaking break 2000?” You know, if you’re gonna have these big, pie-in-the-sky moves, you’re gonna have some up trends first. But they’re kinda preying
on your need to want action. Your desire to be there first. And you just don’t need to be. So for me, what I’ve
learned is that the biggest percentage moves in the
stocks that I trade, happen after they’ve already
hit several technical scans. They’re up 20%, they’re up
30% on the day with good news. And the biggest runners take several days, several weeks, several months to spike. So you’re not gonna miss out
on any thousand percent spike. I know, okay, we’re at
a mining conference, every now and then you strike gold, you strike something
huge and you actually do get that move that you can follow. But if you try to chase those odds, you will not do well, you
will be very stressed, you will need a lot of pharmaceuticals and that’s why the pharmaceutical
industry is booming. The best plays jump out at you. So I travel all over the world, not just for charity, not just for fun, but because, it helps me. I’m a degenerate trader. Okay, this is actually an intervention. This is messed up that you guys
showed up at my intervention and you’re degenerate traders too and this isn’t helping any of
us, so we need to trade less, we need to help each other because the best plays are such gimmes. I have a few haters online,
but the haters actually, one guy in particular said, “Sykes, why don’t you be a
real man and trade Forex, “why don’t you trade some
real stuff rather than “your little bull penny-stock gimmes?” And I’m like, “I’m gonna
stick with my little “bull penny-stock gimmes,
they made me rich.” Forex, five out of six Forex traders blow up in the first six months. And if you look at odds and stats, the odds are stacked against you. You know, 90% of traders lose. 70% of investors can’t
even beat the SMP500 which goes up in a lousy
eight to 10 percent per year. Not to mention last
year where it was down. So I know that you all want action, I know you want investments, start to think the opposite. Have the patience to
wait for the best plays that have multiple indicators. You know I trade stocks,
I’m looking at stocks every single day but I don’t
want to just trade anything. There’s literally thousands
of stocks in play every day. Thousands, or tens of
thousands of pieces of news that you can analyze and you can say, “Hell this is good, this is bad, “this is good, this is bad.” Understand that this is
mostly a guessing game, and if you play the guessing
game that everybody else is playing, you’re not gonna get rich, you’re not gonna do what is
seemingly impossible, you know? I do some pretty crazy stuff. My top students do some
pretty crazy stuff, and it’s due to patience. Buying stocks, only when
they’re hitting new highs, with catalysts in our favor, ideally in a hot sector,
which none exist right now, or shorting stocks, shorting scams, there might be some short
sellers among you, you know? If I was primarily a
short seller these days, which I’m not, but if I was, I would go to mining conferences
and look for the most exaggerated hype-filled promises and short the duck out of that stock, because they’re most likely lying to you, they’re most likely
looking to hire promoters, they’re most likely gonna fail. It’s not a question of if,
it’s a question of when. So those are the kinds of
things that I like to trade when it’s not a question
of if, it’s just when. And then you can work on timing and there’s a whole bunch
of stuff that I teach and technical indicators
that you can time. But I travel so often
to avoid over trading. And this is why I love my life. I’m very fortunate to be able to travel anywhere and everywhere. But it’s also to protect me. Like I said, I’m a degenerate trader and I have to say that in every speech and that’s a real disclaimer right there. Forget about the legal disclaimer,
I am a degenerate trader. I have to control my degenerate
tendencies by traveling, by going to third-world countries where there’s Wifi is terrible, I’m trading in the middle of the night, so I’m not looking forward to trading. You shouldn’t look forward to investing. You shouldn’t look
forward to making money. Obviously we all want to but if you look forward to it
you start to over trade over invest, force plays,
you’re in the wrong place when the right play comes about. You can’t get out of the wrong play maybe you have restricted stock. I’ve seen it all. I don’t have all the answers but I do have two decades
of experience in that. I consider myself a retired trader who only comes out of retirement when there’s a play that’s good enough. And I know that’s crazy
because I’m a trader, a trading educator, there’s a
thousand people in my chatroom every day, how can I say
I’m a retired trader? But that mindset protects me from myself. Who here has seen a superhero movie? Raise your hands. Some, most of you. I think everybody has, some people just don’t want to admit it, right? But superhero movies like, a
lot of them are normal people with these like superhuman abilities. My superhuman ability is that
I’m a freaking degenerate. And I recognize that and I
need to keep the degenerate in his little cave. I don’t want to turn into the beast. For that analogy. Patience increases my odds of winning. Patience increases your odds of winning. I know it sounds crazy, but
the more that you just sit on the sidelines and
observe, and mind you, this means sometimes missing some plays because you’re sitting on the sidelines, you have such a patient mindset, but having this mindset
protects you from overtrading. And then when you do strike, you know, when you do find an investment or a trade, it’s really usually good. You could still be wrong, mind you. Even with my whole patience
attitude I’m still wrong roughly a third of the time. But at least having this
mindset protects me. And when I am in a trade, I
cut my losses very quickly if it’s still going the wrong way. So it’s very difficult
to lose being patient and trading like a coward and I know this isn’t
what people wanna hear, everyone’s always surprised when I say it because I turned a few
thousand into several million so they’re expecting, “What’s
the secret to going all in “and using leverage and
making a lot of money?” It’s the opposite, I never use
leverage, I never go all in. I’m just patient, and
overly patient and cowardly, even overly cowardly. I take my profits too quick. You know, I did an interview
with Kitco a few hours ago and they’re like, “What’s the secret to making
like a thousand percent “returns on a stock?” And I’m like, “I have no
freaking idea, I take my profits “at 10, 20, 30%. “I go for singles, I don’t go
for home runs or grand slams.” So this whole mentality allows
me to take small single, small base hits over and over. And the gains add up over
time if you let them. When I’m not sure about a company, or let’s say even the overall market, because three out of four
stocks follow the market at all times. I do not trade it, okay? I need all my indicators to line up. A lot of people ask me what’s
the hot sector right now? There’s nothing, we had
Bitcoin, we had Crytocurrency, we had weed, we had CBD,
before that we had Ebola, police equipment, China,
biotech, medtech, nanotech, there’s always some sector
being hyped in the past. But right now we’re kinda in this zone where I think there’s
frankly a lot of fear because of what happened in December with the overall stock market and sometimes the best trade is no trade. Sometimes you just stay liquid and you just wait for opportunities. I’m scared to invest for
the long term in stocks, I’m scared to invest in real estate, because I don’t know if
December was just the beginning of a bigger crash, or if it was
just some nice consolidation after a big multi-decade run up. I don’t know. So when I don’t know I do nothing. And this is a game of discipline, okay. I know that you think that
it’s all about research and the more hours you put
in the more that you’ll learn and you’ll have some
edge over somebody who doesn’t burn the midnight oil like you do and you’re researching some crazy weird district off the coast of Canada and you think that’s the secret. Well maybe it is, okay? I’m not a professional miner, I do know odds, and if you shoot for those very low odds type plays, you’re just gonna be disappointed the vast majority of the time. Maybe you hit once and
that’s all you need, and God bless those people but I’m trying to go for
something that’s high odds with less stress, and
when I’m doing nothing I can go out and enjoy and live my life. It’s not laziness, it’s actually good, it’s keeping me away from
being the degenerate trader that I’ve mentioned a few times. So do you have enough patience
to wait for the best plays. I know you all wanna make money, but can you afford not
to make money right now? This day, this week,
this month, this year. Can you afford to wait for
the absolute best play? Here is some examples. I spoke at one of these
conferences three months ago and this was the chart that I showed PURA, this little piece of
shot wannabe CBD play, and the stock was spiking
from two, three cents all the way up to 24 cents. 12 times your money. This is a 50 day chart. Each one of these candles
represents one day. So, it was in play. Let’s see how it’s done since. This is the past 50 days. Absolutely nothing. So, for me, I’m looking at charts, it’s not just about the company story, if the price action isn’t there, I simply do nothing. That’s what you have to understand. Here’s another chart from the
last conference I spoke at, CVSI, another wannabe weed play, these are my kinds of stats, you know I don’t hold the whole time, I again, I’m the run ups, I try to take 10, 20% then I sell, usually too early. I sold way to early on this one. I was in on the twos, out in the twos and it went all the way up to eight. So I missed a lot of it, but I made a little bit
of money and I learned. This was the chart last time. This is the chart this time. In 50 days it has done absolutely nothing. And I know they’re
putting up press releases, the company’s maturing,
business is actually going on, but for me as a trader, as an investor, I don’t want any part of this, okay? Wake me up when it
breaks out to new highs. This kinda looks like gold too over the past few days and weeks. Wake me up when there’s an
actual technical breakout or technical breakdown. Too many people get
obsessed with the story, they fall in love with the story, and most of these stocks,
most of these companies, will go bankrupt. Let me just remind you no
matter how excited people are at these conferences and how
excited the management is, the vast majority of people, if we flash forward into five or 10 years, the vast majority of companies
here will be bankrupt, or close to it. So, I’m sorry to be the bad guy who brings up history in
stats, but I like doing that. I don’t like just believing
hype or management promises, that’s the way to ruin. Here is my top student, Tim Grittani, turned 1500 four months
ago, or three months ago he was at just crossing seven
million dollars in profits. And if you look at all of his
trades, which were all public, me and all my top students
show every single trade, he’s winning, just what
is his average gain? $2800. My average gain is about $2000. So I’m trying to make $2000, 2000, 2000, when I lose, I’m trying to
lose two or three hundred. My gains are bigger than my losses, I’m trying to take singles
over and over and over again. And mind you, I’ve only made a few million dollars in my life. So I’m not somebody who makes
a million dollars in a day. But I do believe that all you need is a few million dollars in life. I think that too many people
are trying to make a billion. I know several billionaires,
they’re very unhappy. Everybody knows how rich they are, they’re being used by wives
and girlfriends and boyfriends and all sorts of bad people. They need security all the time. I actually gave a TEDx
talk on how I’ll never be a billionaire. That didn’t go over very well. I gave it to a room full
of business school kids, all they wanna do is be a billionaire. And I was like, “Screw all your dreams, “you’re wrong, make a few million dollars, “that’s all you need.” It was actually bombed on YouTube too. But I’m serious, I think that’s the best. I don’t wanna be a billionaire, if I ever make somehow, if I latch on to the
right investment or trade, and I make, you know, a billion dollars, I’ll donate 98% of it. And I’ll stick with, you know, 20 million. That’s fine. You can live a fantastic life, a stress-free life, not totally stress-free
but low stress life, with just a few million
dollars in your bank account. And here he is three months later, he’s at now at 7.4 million. So he’s making a little over
a hundred thousand dollars per month, two thousand
dollars at a time on average. Here’s an example of
something that is happening. There might not be a hot sector right now, but there’s still, every
now and then, good plays. So Fannie Mae and Freddie Mac kind of controlled by the
government, kind of not, it’s kind of a weird situation, especially for the stocks, ever since they had problems back in 2008, the government has been
trying to, you know, get away. Companies should be off on their own. So this news just came out Friday morning, here’s a chart of Fannie Mae, I actually bought this on Friday and made a few hundred bucks. This is a nice breakout. Each one of these represents one candle and Friday stock was up over 30%. This is my kind of a chart. It might not have a hot sector, might not be the hottest market, but with that news, with the
stock that’s a former runner with massive volume, with
a multi-month breakout, the indicators were
going for it and like I, true to form, I underestimated it, could have made about $3000. I made a few hundred. I played it too safe, but at
least I was ready and waiting. Every single day I’m
waiting for some company, some stock to show me something. Like prove to me why do
you deserve my money? Why do you deserve my time? Fannie Mae owned it with
this technical breakout with the news catalyst, with it’s history of being a former runner,
those three indicators were enough for me. Even though it’s not
my ideal kind of play, ’cause this is still a
multi-billion dollar company, I prefer smaller companies. I do encourage you guys to
stick with small companies. That’s one thing that
you guys are doing right. Rather than going to Berkshire
Hathaway’s annual conference, that’s fantastic if you
wanna become a millionaire by the time you are a hundred you can buy some crazy titanium new hip, just so that you can
waddle out of your mansion. I don’t know about long-term,
blue chip investing, I know about short-term,
trading of piece of shot stocks, where it’s predictable because
most of the people trading these piece of shot
stocks are stupid morons. So you have an advantage. I gave an example during
my speech yesterday that– I know, I’m sorry, I’m
really toning it down right now but I’m trying to be polite in front of my Canadian audience okay? But I just, eh, come on,
have some maple syrup, come on, I try and make
this stuff entertaining too, don’t take everything so personally. I think that you should stick
to piece of shot stocks, because if you look around the room and the people that you meet, not the most intelligent
people okay, and that’s good, I’m not the most intelligent person, so if you have a room
full of freaking idiots, you can probably make
money off them somehow. You can find your angle versus if you are at Berkshire Hathaway,
there’s a lot of people who are really smart,
who are really wealthy. I don’t wanna compete against them, okay? If you’re trading Forex,
you’re competing against George Soros, and all these algorithms, I don’t even know how to
spell the word algorithm, so I don’t want any part
of that big competition. Stick with the piece of shot sector, stick with the piece of shot people, but at the same time it’s cool because if you’re even a little smarter, even if you do a little
history and look at a little you know, stats
and what these companies and these people and these
big projects do over time, you’ll have an advantage. And here’s Freddie Mac,
same chart as Fannie Mae. So, you have countless opportunities, but ignore the vast majority
of them as they are shot. This is how my top students and
I became multi-millionaires. I know it sounds crazy, but it’s true, succeeding and really
thriving in investing and trading is hard enough, remember 90% of traders lose, roughly. Maybe it’s 95%, there’s
been a few academic studies. So most people lose, if
they say they’re winning, they usually full of shot. We show everything online. This is what has frankly
built my education business, just showing every trade. Income tax returns, audits. You know, being honest as
you can tell, with my speech. Learn to risk your money
on only the best setups, not guessing games. That’s my speech. Thank you guys. 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 student.

100 thoughts on “How to Pick A Trade: Best Practices for New Traders

  1. Are these types of trades possible over weekly timespans? I don't understand how this would works when shares trades require 2 days to settle…

  2. TS, I like the way you talked. I called it tough love for trading. Loved to get your one of tour courses but low on cash.

  3. Hi Timothy.

    My name is Yoram. I'm from Israel .

    Only a few months ago. I started studying the stock market.

    You're the best show in town in the stock market I've seen … and believe me I've seen quite a bit.

    Your special style … I was able to connect to your videos.

    Yes, I love your enthusiasm … which sometimes goes beyond the limits of etiquette.

    Now I understand why people do not succeed …….. Most of the lecturers are trying to explain something. They bore you to death. With information that is not always relevant. Especially at first.

    You make it look as exciting as it should be …..

    Thanks .

  4. been willing studying since 2am and is now 9 am, I have a phone interview on Monday and i cant wait. This definitely my favorite video so far!

  5. buzz off you, laughting haha digging your self deeper, then you call your self to chill the steam then on the attack again good strategy haha, ill be one of your sudents soon if you take me on just got about 300 more of your vids then ill be in contact thanks for everything keeping it real peace

  6. So true! Being patient and waiting for the best plays only is key to growing your account fast.

  7. sup tim im a new student and i totally believe in your way of trading. im a pretty patient person so im here learning how to trade. no one knows wtf im talking about when i bring up stocks. right now i almost feel like if im just wasting time or maybe i know something they dont know. i guess id rather persevere push through the bs and look for the win. ive been using robinhood and i have been taking little base hits with just small capital. i almost have about 500 to hopefully start making few hundred dollar base hits till i can start making thousand $ hits. in the mean time im making 5$ base hits practicing. im hoping to show my portfolio balance with at least $10k one day. wish me luck

  8. Would be great to get in contact with you, in regards to an up and coming run. Thank you for your efforts.

  9. I adore you as a person and a trader, you break it down so good. Keep up!

  10. I'm just a random millionaire I'm not a professional …. WTF? did you get paid for speaking then guess what your a professional.

  11. Awesome video brother. I need more discipline. I need someone to smack me and say "Think Dumbass" get out now before you loss your ass. Lol


  13. Love your no BS attitude! I keep telling people I don't want to be rich, just wealthy enough. Not too much… just enough to relax

  14. Great that your doing a lot for kids, Tim. That is awesome!

  15. I have started some Penny stocks that are under $5; and bought a hundred or so shares. When will I start gaining money? Does penny stocks make dividends or just growth?

  16. Love it! 90% of people aren’t driven or teachable. I want this so bad, learning every day. I will master this.

  17. Hi Tim , just discovered you channel , good videos , great work , I hope you keep on sharing your experience !! Thank you !

  18. I have watched my share of TS's videos, but this one is unique in that (though I don't know what conference he is in) he seems to be calling BS on the entire thing. I don't think he will get invited back. lol

  19. The audience is shit. I'm very amazed by you Tim Sykes, I hope you reach a Billion dollars. You deserve it HAHAHAHAHA😊😂

  20. Tim….its nice to see you've, matured. You're growing up. Talking about patience!!

    This is such a pleasant improvement!! You starting to realize, what life's about. From where I first saw you a few years ago!! Good!!

    You're a nice guy….but couldn't get involved with you, as the 0erson you were a few years ago!!

    I'm proud of you. You're finally understanding who you are, in life!!

    Just tone down the swearing a bit….it greatly distracts. It degrades you….



  21. can anybody help me and tell me what website he's using for charts like at 16:45?

  22. You're giving back to God with your charity foundation. Now, that is very respectable Mr. Sykes…

  23. First time watching your videos. Ive seen you on the real tarzans ig page and was like who is this dude. For starters we got one thing in common and we're both degenerates. i want to become a trader very badly because I dont want to be a sucker in this world. here are to many variables to get caught up in and I just want to keep moving forward. Wondering where I should start? Im sure theres videos of you explaining where to start would be appreciated if someone posted the link


  25. Looked up CVSI – no results.
    Looked up PURA – no results.

    Guess they, like you said in the video, went bankrupt!


  27. #1 dip buy morning panics. Thanks for all you do and being straight down to earth!

  28. Hey Tim. Looking around Youtube on a Sunday morning, anticipaiting the week ahead. I too am a patient trader.

    I am able to take more of the meat in the move up, because, as you have talked about often, some of us are more risk averse. Other times the news is so obviously good that the stock is gong to run up 3 to 6 dollars. The meat of the move (which I have shown in my chart photos) often can be between 1-2 dollars. Some traders who are students of yours hit for several dollars, just because they see that big run up coming os the obviously huge news. Last year NBEV was one of those> It went from 1 to 10 in a day…and had some massive pullbacks and bounces. the merger news was just too big to ignore.

    I was still learing and not dialed in like I am today, so I did not even take a big chunk. I will have to go back and look at the chart but I'm sure i took like 28 cents on 200 shares or something like that.

  29. Trading stock with Mike Harry Trading have been profitable and safe

  30. Sad to say I gave you $7k of my hard earned money to be a challenge student and you will not answer questions or help like Ryan said you would. There is no wonder in my mind why you have so few challenge students doing well. Make me a believer and teach me. Your vague.. buy the breakout….short the break down is not teaching. Teach me Tim. I CHALLENGE you to teach properly.

  31. Lol I've seen a lot of Tim's videos and I can say this is my favorite one as entertainment and tips

  32. Like this perspective !! Problem is when traders get desperate and addicted to trading

  33. This video is hilarious; it's also the second time I've watched it. It does a good job of hammering home the ability & necessity of playing the waiting game! Be the spider; prepare your web & wait!

  34. Thank you Tim for keeping things real, I love this, inspirational!

  35. You're great, Tim. <3 I love how you say you won't be a billionaire. It really shouldn't be the goal. It's a terrible goal.

  36. "WHO'S EXCITED TO BE HERE?!?!?!" *crickets* That crowd didn't deserve you, man.

  37. dude enjoyed im a degenerate trader also lol i end up giving back all my profits anyway im a hard working guy i put in the time and i never give up so i will succeed love the video

  38. Tim does more of bragging and using swear words than teaching trading of penny stocks

  39. the best f***ing video I've seen from you yet please take me under your wing

  40. I love your honesty and your methodology! I am very interested in learning how to do this!!!

  41. What platform do you trade on, I’m live in Jamaica and I don’t know which to trade on?

  42. Thanks Tim, you're awesome. I don't care what the haters say or think, you're doing an awesome job and helping people. Best of luck man.

  43. Scammmer!!!!!!!!!!! ………I signed up for Supernova….. hahaha it was a joke. It was all a gateway to get GREEDY TIM more money. Go to, You will get so much more free content than this Greedy Big Mouth CLOWN.

  44. Haha great video! Why can't people appreciate small gains and "its-ok-to-be-basic" mentality? Why argue with the stats and facts guy? Anyways, appreciate the info as always. You seem like a great guy, hope to meet someday.

  45. A lot of penny stocks are scam stocks, you must be very cautious, do your research., read the comments from other investors on blogs

  46. I love the fact that u keep real …. now.. how do i start the penny stocks moves?? Where? How? When?

  47. its true you don't have to be a billionaire to be happy personally even a hundred thousand dollars cash flow is cool for me

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