NEWS FLASH: Not all traders use the same strategy!
In fact, finding the trading right strategy is like finding the perfect fit for your favorite shoes — it’s unique to you.
Think about it: every person is different, right? Some like trashy reality TV while others read classic novels. Some enjoy pizza, while others prefer burgers.
Well, it’s the same with trading. Every trader has their own style and preferences.
What works for one person might not work for another. And that’s okay! It’s all about finding what suits you best.
So, how do you find the trading strategy that fits YOU like a glove?
Keep reading and I’ll show you…
A Few Ways to Start Finding Your Trading Strategy
First, you need to learn about different options trading strategies. It’s like trying on different outfits to see which one looks and feels the best.
There are different strategies for different situations – when you think a stock will go up, down, or even stay the same.
I’ve written in detail about my own personal trading strategy in my ebook — The Ultimate Options Trading Blueprint for Small Accounts.
But remember, just because your friend likes a certain strategy doesn’t mean it’s right for you.
You’re on a journey of self-discovery, like a treasure hunt for the perfect strategy. It might take some time, but if you stick with it, your search will be worth it.
Start by understanding your own personality and risk tolerance. I recently wrote an entire guide about this.
Are you okay with taking bigger risks for potentially bigger rewards, or do you prefer a safer approach? It’s like deciding whether to go on an insane roller coaster or the Tea Cup ride at Disneyland.
Here’s a secret: success in trading is all about practice. Study, study, STUDY! Your study habits are a secret weapon in the stock market.
There are no shortcuts, you must do the hard work required to consistently profit.
REMEMBER: Even the most experienced traders started as beginners. Everyone must learn to crawl before they can walk, and eventually run…
Start with paper trading — it’s like a practice run without real money. Try out different strategies to see which ones feel right.
If a strategy doesn’t work, don’t get discouraged. It doesn’t mean you’re not cut out for trading. It just means you’re narrowing down your options (excuse the pun) and getting closer to finding your strategy soulmate.
With that in mind, I’d like to tell you the story of how I discovered my go-to trading strategy…
How I Discovered My Bread-and-Butter Strategy
In 2009, I stumbled upon Tim Sykes’ YouTube channel. It introduced me to a whole new perspective on trading.
Specifically, I thought Tim’s approach to pump-and-dump trading was really cool. (This would eventually influence my entire put-trading strategy, but I didn’t know that yet…)
So, I decided to join Sykes’ Pennystocking Silver program and be one of the first students.
As I continued in the program, things started making sense. I started to grasp what it took to make it as a trader, although I still had a long road ahead of me…
After a few months of learning from Sykes, I took the leap. I decided to quit my accountant job and immerse myself in trading full-time.
And that’s when the hard work truly began…
You see, my trading journey wasn’t quick and easy. It took me about three years to start making good money.
With Sykes’ help, I learned a lot about what affects stock prices and which catalysts to watch for.
He taught me repeatable and predictable chart patterns — like the First Red Day, First Green Day, and Supernova patterns — that helped me identify potential five-star setups quickly.
Additionally, I absorbed Sykes’ trading rules — like cutting losses immediately and knowing my history — which are now pillars of my trading tragedy.
Understanding this stuff gave me an advantage. Before, I wasn’t sure about trading and felt unsure about my decision-making.
But, with Sykes’ guidance, the clouds opened up. The big picture became more clear.
I finally had solid reasons to make smarter trades and feel confident in my strategy.
In 2011, I upgraded to Sykes’ Trading Challenge, which was the best decision of my life.
But I didn’t take a half-hearted approach. I went all in. I was dead set on being one of Tim’s best students.
I watched all of Sykes’ videos THREE TIMES and categorized them for his students.
Not only was this a good way to get involved in the community, but it helped me soak in the knowledge required for long-term success.
I also helped with Sykes’ webinars and talking to other students on Skype, which I continue to do to this day.
Eventually, I found what worked for me — focusing on shorting overcrowded momentum stocks. That’s my bread-and-butter strategy.
I still trade other setups, but ultimately, I know what works for me. And I couldn’t have done it without the Trading Challenge.
Remember that discovering the strategy that works for YOU is about self-discovery.
As you keep trying different strategies, you’ll start noticing patterns about what works and what doesn’t.
Then, you’ll start to realize which moves give you confidence, align with your goals, and eventually, deliver you profits.