In these strange times we’re living in … untrustworthy stock promoters, crypto crooks, and financial scams are more rampant than ever.
I understand how difficult it must be to know who to trust if you’re just starting to trade in this environment.
With that in mind, let me take you on a trip down memory lane…
As a newbie entering the markets, I didn’t know much about trading.
In the beginning, I bought shares of random stocks for random reasons. I didn’t have a strategy or game plan.
I ended up getting lucky and avoided blowing my account up during this period … but I had no idea what I was doing.
He was a tried-and-true veteran in an industry that I desperately wanted to understand. He taught me a few simple rules that helped me become a multi-millionaire…
Without the right teacher, I probably would’ve ended up destroying my account and headed back to my day job with my tail between my legs.
I was lucky to discover Sykes’ lessons when I did. But these days, it’s more challenging to find a trustworthy trading mentor…
There are hoards of faceless Twitter profiles claiming to be “trading gurus.” Be wary of the fake gurus or ‘furus.’ Don’t follow trading advice from anyone who hasn’t proven their worth.
I knew I could trust Sykes because he shares all his trades on Profit.ly. He focuses on teaching the process instead of hyping pumps.
Now, I’m lucky enough to have the pleasure of teaching you.
In that spirit, today I’d like to save you a bunch of time by sharing a few indispensable trading secrets that took me years to learn…
Keep reading and I’ll show you…
Typically, newbie traders struggle with the volatility in the stock market.
And this year, where the overall price action has been more unpredictable, it’s been even more challenging for those trying to learn the art of trading.
But I think there’s a simple way for newbies to trade this market comfortably — sizing down their positions.
Are you familiar with this trading “loophole?”
Are you familiar with the “loophole” that helps small accounts grow exponentially?
No, it doesn’t have anything to do with penny stocks or crypto…
And this strategy works regardless of whether the markets are up OR down…
This little-known options “loophole” is something you can use to grow your trading account right now…
If you’re feeling mentally uncomfortable in a trade … it’s probably time to lower the size of your positions.
In a market this swingy, you need to limit your risk by taking fairly small position sizes. This is how you’ll get accustomed to price movements and grow your small account gradually.
I notice this myself. If I oversize my positions, it can be really difficult to hold the trade through crazy volatility.
That’s why I’ve been trading smaller this year. Position size can have a huge effect on your mindset.
When in doubt … size down. Hit single after single after single. Celebrate your consistency.
REMEMBER: It’s much easier psychologically to add to a winner than to trim a loser.
Starting with small positions allows you to learn the setups that work for you. And it can help you gain confidence.
That said, you’ll eventually have to learn to scale and increase your position sizes.
When you’re ready, you must take advantage of five-star setups to grow your account with larger positions.
This is where a lot of traders get stuck — they don’t scale correctly.
Whether it’s a multi-day breakout in a hot sector or buying weekly put options on a first red day, you have to get more aggressive on patterns that have incredible risk/reward or you’ll never grow your account significantly.
So … start small, then scale up on perfect patterns. That’s the key to sizing like a pro.
Learn from Your Losses
As a trader, you have to accept the fact that there will be times in your career when you’re just completely wrong about a setup.
All the technicals can look perfect, the fundamentals can be sound … and you can still be dead wrong about the timing and direction of the stock.
And when you’re wrong in the stock market, that usually means losing some money. It’s an unavoidable part of the game. The key is to cut your losses quickly and keep your losses small.
Even the best setups won’t work every time. Sometimes you’ll buy a failed breakout or failed breakdown, other times an unpredictable headline will reverse the direction of the stock you’re trading.
Take me as an example…
When that happens, stay disciplined and cut your losses immediately. Then, do some serious self-reflection about what you could’ve done better.
REMEMBER: Check yourself before you wreck yourself!
Any time I find myself regretting a trade, I ask myself the following questions…
- What valuable lessons can I take away from this loss?
- How will I avoid making the same mistakes in the future?
- What steps can I take to improve my trading moving forward?
Start taking accountability for the losses you take and I promise you’ll be a better trader for it.
I want to teach you everything I know about trading, so you don’t have to work as hard as I did.
You could go on your trading journey alone, or you could let me help by pushing you in the right direction.
Even with my guidance, it won’t be easy. You’ll still have a lot of hard work to do.
But I’ll be here to help you every step of the way, just as Tim Sykes was for me.