What To Do When You’re In a Bad Trade – Advice From Three Successful Traders

– There’s always going
to be another trade. Whether it’s a long, whether it’s a short whether it’s CBD or Bitcoin or some new technology. It might not be the next day. This is what I think
what people are afraid of because, you know, with penny stocks there’s not always a
perfect play everyday. (slow instrumental music) (dramatic instrumental music) What do you think people should do like, if they, if they’re in a bad situation cause both of you guys have
been in bad situations, money wise and trade wise? Like, let’s say someone watching this is in a bad trade right now. What would you do if
you’re in a bad trade? – Immediately close the position out and turn your screens off and walk away. – What would you do? – The same thing, I mean
thankfully I never went through a situation like you because I would just cut and accept it. My problem was I kept going back for more. – Yeah. – But I would leave. If you’re trading like that
or you know it’s a mistake or, get out of the trade and leave. Like, shut it off. Maybe leave for a week,
like, let the pain sync in. Let, you know, let it hit you emotionally. Because time will heal that wound. – Yeah. – And you’ll forget about it. And you just kind of
needed to let that happen and then, come back with a fresh mind. – And this is what, like,
some of you guys’ message being like “Okay I didn’t know your rules, I’m in this position, what do I do? Should I keep holding,
maybe it’ll come back?” And for me, those losses is
not even about the money, it’s the mental, you know, repercussions. Cause you’re in that
loss, it’s like a Cancer. You need to cut that Cancer out. – And you can’t trade, like,
there’s gonna be another setup right down the line. Like, this setup is not worth it to risk your entire account. – No one trade matters enough
to risk your entire account. There’s always going to be another trade. Whether it’s a long, whether
it’s a short, whether it’s CBD, or Bitcoin or some new technology. It might not be the next day. This is what I think
what people are afraid of because, you know, with penny
stocks there’s not always a perfect play every day, right? Like how often to you guys trade? – Too much. (laughs) – In February we were trading
like every day because there’s a lot of plays. I’ve tried to tone down
my trading in the Summer and basically just size down like. If I can risk five, or not five
hundred, fifty to a hundred dollars to make like two
or three hundred dollars, I’m happy with that. But in February there’s more
plays so you can risk like two, three, four hundred to make like, couple grand, three grand. – Now this is trading, you can modulate. You don’t have to buy a
thousand shares every time, like, if it’s a new strategy
or if it’s a slow market you can buy two hundred shares. – Kind of reacts to the market. – Instead of a thousand. It’s not black or white and
you don’t even have to trade. This is another thing. So if you have patience,
for me I’d actually rather people under trade then over trade. You know? I think a lot of people
are like “Okay I don’t know the patterns let me try
this, let me try this, let me try this, let me try this.” and… – You’re gonna do that
paper trade just to kinda see what you’re gonna do and
like, how everything works but, when you have… – You don’t get the emotional
education paper trading. – Yeah it’s true. – At least you still get
some practice though, – Yeah. – Seeing how fast these stocks move. Are you surprised at how
fast this stuff moves? – What in like, listed land? – Just, no, like all these
stocks cause we’re trading the most volatile stocks in the market. – No, yeah, when you especially
when you go from like, a background in OTC to like
right now, the last few months I spend diving into NASDAQ
longs to learn them more. And the tape is just
so different, like … – Yeah at first. – It’s all over the place. – I love OTC. Trust me, I’m very happy
with my TTCM and now my RAFA I know that they’re
like, sketchier companies like I think all these
companies are gonna pay out. By the way, notice we’re
talking about our games with patterns and strategies not saying “This is a good company,
this is a bad company”, all these companies suck, okay? Do you agree on that? – Yeah. – Right? – I never even like, read
the fundamentals or anything like I’m basically just
trading the technicals. – Well if you just expect the worst you’re never disappointed. I know that’s a cynical
way of looking at things. (laughs) – And that’s, that’s why I’m
so cynical towards the stocks, I’m better at going long
because I think that all the stocks are really
bad, so when they start going against me and I’m
long, I can immediately cut because I’m scared that
they’re gonna go to zero. – That’s a good way to think. – But with short selling,
you’re like “Oh no, this stock’s junk so you wanna hold on to it, and that’s just a toxic mindset
that will get you in trouble. – That’s actually a really good point. I’ve never heard that, that makes sense. So, being cynical helps
you on the long side because you’re so
scared, but being cynical on the short side, gives
you too much confidence. Cause I can’t tell you
how many shorts are like “No this company has
words, it’s gonna go down”, and then it squeezes
three hundred percent. They’re like, “But the
words, but the fundamentals”. (laughing) Like, DRYS when it went from
five, to a hundred plus, one of the worst fundamentally
flawed companies in awhile. – Yeah. – And yet it still went up
twenty times in a week, because – Price option is key. – Well, but it’s also short squeeze. – Yeah. – So, do you notice now,
right now, mid-2019 versus like, 2018 or 2017,
there’s a lot more squeezes in, in the squeezes are, are bigger. That’s what I start seeing, right? Like, you don’t just, back
in, especially before you guys began 2016, 15, 14, you
would have stocks that go from like one to
four and then back down. So like four times your
money that would be max. But now you’re seeing stocks
go from like, one to ten or two to twenty, or like
you know, what was it BPTH two to seventy plus. – Yeah that was crazy. – Like that was crazy, so
shorting is very scary. And if you’re cynical about
fundamentals that actually makes you more aggressive
as a short seller and increases your risk. So, being a cynic as a
short seller is dangerous. – Exactly. – All right, that’s what I think. – 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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