3 Trades A Week: My Student Discusses His Success
He. Tim Sykes here and we have a very special video lesson, today from. One of my newest, six-figure. Students, honey, and he. You, can see from his profit, chart is just on fire I'm, about, to cross two hundred thousand. Was. Not really, profitable, in 2016. In 2017, when, he was starting so this, is why I want to show you not, just his video lesson but, his entire, path. Because, as you watch, this video lesson that I'm about to show you you'll. Start to see like wow he, really knows his stuff but. He, has taken, several, years roughly three years to, get here. And as I often say in the challenge chatroom that he is smarter. Than what his trading. Account is you know he's he's far too smart, to have only, quote made you. Know two hundred thousand dollars but at the same time he, was just graduating. College, and. You. Know to, make this kind of money it does, not happen, overnight every, single day someone says how do I make two hundred thousand dollars I don't even need to make a million dollars how, do I become the next hoodie and for. These two years. When. Hudy was not making money, like literally like nothing. He, was still studying it wasn't that he was just doing nothing I mean he had made like, a few thousand dollars but. You can see here really. 2018. And now the beginning of 2019, I'm in his chart his profit chart is going supernova, so, what changed, between. 2018. 2019, and, 2016. 2017. 2016. 2017, he's learning, you. Don't just get the ability to make three. Four, or even five figures. In a day overnight. Okay you have to see the plays you, have to sometimes miss, the plays you, have to sometimes nail, the plays you have to sometimes be you. Know a little too aggressive and maybe you should have taken profits, a little sooner or. Cut, losses sooner, you know but maybe you were too aggressive sometimes. You, might be a little too conservative and you'll take profits, too soon and you'll wish that you could do those trades again. The. Key here is that you can okay. I need, to get you having the right mindset because, too many people start, like this and you know at least he was still up a little bit in 2016. Or 2017, but whether you're up or down a few, thousand, dollars it does.
Not Matter, so, many people message me oh my god I'm down a thousand dollars my life is over no it's not okay. In the beginning it's, hard Tim, great Ani arguably, the best, penny stock trader hold on let me pull up his chart this. Is Tim kotani's chart where he has now made over 8 million dollars he. Did not make anything, in the, beginning in 2011. In, 2012. Ok 2012. And 2013 he did well but in 2011, he, did nothing nothing and. It. Wasn't that he wasn't studying, it wasn't that he wasn't trying he. Was trying he was just testing. And learning, and this is exactly what huddie did you know if you came to some. Of my inner circle classes, HUD he was always there. Always. Taking. Notes he had a notebook, full, of notes, and. After, you know at, lunch time and at the end of the day you would come up and ask a few questions from. His notebook and he'd be like okay thank you got those answers he, would mark them down and he, would go back to, the drawing board and he, has learned and as you watched this video lesson in a second, you'll see that he's really honed. In on his, patterns, and it's actually interesting because his pattern. Roughly. Shorting the back side spikes, you know overextended, gap downs, that. Does not really work for me for whatever reason I've tried it I always, picked the ones that just you know squeezed and that is something, I'm not very comfortable with but, he prefers, short selling Tim, great Ani i nose prefers, short. Selling you. Know Michael good mark crook rolling like a lot of us have different, patterns on similar. Stocks so, there's, no one right pattern some people are like oh Tim if you teach too many people these patterns are gonna stop no if. I teach all these people and everyone, has different personalities. And different strengths, and weaknesses and different favorites, guess. What it just creates more place and, frankly. I'm very grateful, for all newbee shorts lately who do. Not wait for the backside and they just short anything, that's out because they're following these idiot, newbies who think that they know everything and, they're, gonna blow up but, my Cuddy is you. Know year three year four of his journey here he is not a newbie, anymore, he's. Been studying non-stop, and he's. Been learning, non-stop, and this is us I guess. A little over a year ago in 2018. He, graduated, college. He's. Hanging out with his dad he's traveling all over the world he, was up on stage at the trader investor, summit here, we were in. Italy. Here he is trading, you, know overlooking. Central. Park. He. Was in Hawaii now he's in Palm Springs at Coachella, so, he's living and look. He's taking shots with some girls like he's. Not just chillin. In any, one, spot he's, livin but. He's, livin because, he has learned to make money and this is the kind of freedom that I want, you to have okay I want your profit chart to, look like this whether you make two hundred thousand, or whether you make a million I mean this is basically what, huh tea will be in a few years if he sticks with it and this. Is what every, one of you can be I you know I don't know that if we're all gonna be the next Tim Burton I mean this is this, is best-case, scenario, I haven't even made this much but, this is the kind of profit, chart the, kind of pattern that you can have once. You really, study once, you learn the ins and the outs once, you find your pattern, so, leave a comment below if you, understand, and say I will. Be patient, because. Patience, is the key to success, too many people give up or, they quit or they get down on themselves too early in the journey when, in fact it's, always toughest, in the beginning of the journey it gets easier over time you just have to make it you have to see these different players you have to see these different run ups you have to see these different, sectors.
Spiking. Up whether it's weed stocks or CBD or. You. Know Bitcoin, or cryptocurrency. Or Chinese, stocks or shipping stocks, or, biotech. Or medical, tech or. You, anything, there's been so many different hot sectors, that spiked up you just have to be around to, witness sometimes. Win sometimes, lose but constantly. Win lose or draw learn, learn, learn this, is a marathon not a sprint, congratulations. To, timber Tony also but. Also Mike honey keep. Taking it one trade at a time man do not get too cocky because. I want to see what you can do in the coming years but congrats and everybody, else check out this video that Hadi, did thank, you for. Just, showcasing, these, patterns, that you have really honed in on Mike, good job, it's, been, a while since my last video, lesson, so I wanted to get another one out there, today. The. Theme of this video lesson is going to be focus you, know people, saw this day ask me when, was it that you thought you mastered, the stock market, when. Did it all click for you and you, guys need to understand, is that it's, a journey. I've. Gotten, to where I've gotten but this is just the beginning I am, still, so much more to learn so much more to be disciplined, on. Not. That, you know this is like I said just the beginning and so. This is my profit chart, since. 2018. And, it's, kind of growing parabolic, right now you have this nice first little spike up consolidation. Now it's great to test the highs and going crazy, so. What really was this what is the story telling us um right. Here is when I really started reaching consistency. Right, this is when I stopped longing, I realize that I'm no good at long it works for others it just doesn't work for me so. I focused, this was the first time I said I'm gonna focus and take this professionally. And, I said I'm only going to short stuff and then, through short selling I found OTC, short setups and luckily this isn't the time with Bitcoin and, Canadian. Pot stocks going crazy and I really got to learn the OTC, short setup firsthand practicing. Saying, I'm gonna mail it the next time and the next time was the next day and I, was able to really increase my account size. And. When we got into the $140,000. Range something. Happened the OTC, market died, off my, OTC, short setups were no longer there so, what happened I had a lot more money in my account I went back to buying it I went back to shorty, green dates I went back to trying to scalp boobs every time I thought I was right and. What I've learned is there's, no point in being right we don't have to feed your ego just because you can be right about a play and make, profit, does that mean it's worth it is what, you should be asking yourself maybe. 50/50, chance of being right regardless, so in, this topic consolidation. Zone of my profits, I had, to rethink my strategy, OTC, shorts, workout wrongs, I still was doing good off better. But, still no good and I. Had to figure out what kind of shorts that was great I so again, focusing. Focusing deeper, what, shorts was I good at and through. This, period. Of. Introspective. Reflection, I lost. Quite a bit of money I went on from 140, down to 110 I think. Was the low and that was scary for a month for a moment there I doubted myself, but.
I Kept driving I kept looking deeper, I kept saying to myself you, know where. Can I have an edge where, can I put myself in situations where, I generally. Don't take losses and I can increase that win percentage, and through. That digging through, mentors, through questions, through. Practice. And and, discipline, and focused focusing, on the right things I. Found. Edges, I found edges in short style that. Before yeah I knew how to short sell and I made a hundred grand just knowing half short-sell but, in this consolidation zone. I learned, how when and where - or teselle what, to short sell not, everything. I think I can make money off and then. That had really changed and that, was my most recent change and that was as of December, and. I haven't had many red days since December, on, my size is still completely under control, I'm never, pain playing, more than 10 - 30 K position sizes very rarely is it more than 30,000, but, my percent win has gone up not. How many times win-loss although that has gone up as well, my percentage, gains have gone from a rough average of 7%, to 13%. Average, so a couple of them are really eating out of the ballpark, to boost that average up what's. Changed, I have found edges I dug deeper and now I'd really focus, I have, rules because, of how, much I've dug deeper I now know what to avoid and what to look for and if, I don't see those things I can pretty. Much write off the stock so quickly that I don't trade that day so. This week I made three trades three. Trades worth talking about and that's all you need three, trades a week God we're blessed. The. Ability to make 20% in a week is phenomenal. Let alone three freaking chances. So, let's go over them because they're really set so. The first play we'll go over is, yrv, we're. Gonna go from most recent, of these three centers because. That would be most recent in my mind so. Why. Are Ivey first. Things first but when I categorize, this as it categorizes it as low as a short in the resistance play right. Out of trade even tickers you, have a stock that for multiple days has run from basically 40 cents all the way to two dollars which is quite.
Extended, In my book there's. Also you know lunch we're talking about this company and then if it completes fraud, and scandal, the company. You. Know people people. Do a lot of research into penny stocks you don't really need. To do, that much hard work you just need you smart work follow the right people on Twitter listen to what they say if they say companies have fraud whether I want to do the research or not I know I don't want to long day I. Definitely. Want to short a winner runs a couple hundred percent, in a couple days so, what. Made this thing differ from any other devil, well. This day was the, day that it was truly extended I mean ended the dollar range was extension, but, it was also a breakout so he definitely wanted to be cautious. Ledee of the breakout and not really get into eager the. Next day had his first breakout data was trading some massive volumes so again I don't want to step in front of massive volume that's just a rookie move especially when the stock is green all day but. In this next day it, kind of opens up a $1 ATP market it has that violent, pull all the way through green red so. To me that's the first time it's lapse free read and did it absolutely pull but, it's weakness for sure and, I learned from startups, like end of and niño that. When you see week pre-market, it's time to go after a shortened resistance, if that opportunity is there so. Write up market open we need that fixed by train the one 91-93, was resistance, from previous dead so, I became thinking orders at 185. And. That ended up being a really good entry because, pretty soon after that we. Got this nasty of our crack and. Okhla. Entries out for us so. Again. We had that pop in the morning I started taking size 185. Chase. A little down to 180 once. We got that the hard crack that confirmation that 193, is the top that it's a double top that, you know there is resistance there I have a lot more confidence in that level and we're still not too far off of it you know we're up 400%, so, I think if this is gonna crack red today we're going to see some downside so. 175, I've thrown some hats I get, my size bigger um, and, now get to 180 average so, rifts risking roughly 13 cents and reward, is like minimum 50 so, 1 to 5 is there Plus what, do they all to take a loss - I do factor that into the equation so. I hat and in, this consolidation zone, I said patiently either I'm right or I'm wrong I'm happy with those results we. Immediately get that crack through greed breath this. First balance here is very interesting to me as well this, is that first bounce read for. Tony loves taking this short it's one that I'm trying to get better at 18 I do, get a little nervous I don't want to forego mess up my average but. In hindsight this, becomes a great risk to use when shorty bounces so. Moral. Of the story on this bounce is yeah that first slap read first time the stock is read on the day you, could definitely go off a balance and make reasonable, risk. Assessment, on on previous resistance throughout the day thank, you for risk reward under control it's, just something you have to see you enough times to learn how to play when, it does go from green to red and it has that bounce, then.
We Get further crack and I'd love to see that that's what I cover my initial position from this morning all, the way down to 35 cents lock in roughly 45 cents a share, then. It bounces very, predictable, that, balance is roughly 20 cents and starts to spell out 145. 145. Is word caught this morning it also we're at hot today before so, it makes sense that would be so. I started taking some positions in that area we. Consolidate, for a while and let me bounce up back to that area I still want my hat I'm still thinking this is first red day generally. First right days have a second right day if not they break through day luck so, I'm going for this day low to be broken when I'm shorty 145 took. Another 7,000 shares here and just wrote it down once, he cracked low load day I took off I'm done with it that's, all you need to do every, single day you'll. Be phenomenally profitable, there's tons of percentage wings to be made on this you, could short the mornings fight you, could short that first bounce read you, can short the bound short first write they bounce short those. Are all viable options. Morale. That story is you never need to rush you never need to be in premarket you never feel like you missed the trade if you, are watching the right volatile, stock you. Didn't miss crap there's going to be other opportunities stay. Focused, and know, how they start to behave on certain dates become. A master put in 10,000, hours, that's. Why our ID. The. Next one I want to go to is a EEO. Any. Ego is another really nice one. I'm. Gonna go back to the. So. First I'm going to explain the setup. This. One overextending, back on first thing what I see you know breaks then you got down we're going to see it I see it on this 8 right here what. Do we have behind this next round from the city center range through. The breakout of a dollar and then into a dollar 90 on massive, massive volume, yet again so. When that first time in its got me bound that first time in today I absolutely want to short another, to, strength, so. Now let's look at the, intraday chart, I'm. Gonna flip to the 2 minute and, zoom out here. So. A beö, now. This. Was. Its previous day when it had its massive run from a dollar 20 to a dollar 90, it. Closed in roughly a dollar 60, and the next day we. Have a gap down roughly. 36. It opens up and even goes lower down to 15 cents and. What am I thinking on the stucco stocks a bigger stock a bigger float stock it doesn't move it shouldn't move very fast so. When you get a move from with dollar 15 all the way up to dollar 60, that's. A very big move for this stock and. What, do you know reread, is. Right there at a dollar 62 previous day's close I move this line, right.
Where It closed, right. That's where it closed the day before and, then you have that nice short into strength right you think reread, and. Then you let it fade into closed that's exactly right bit it's a black-and-white play, the. Drinkin is the deviation, not, to be shorting, when, you think you know the, day high is going to be resistance because, that's not the resistance, you should kind of play out that's, not the resistance, that overextended got calm possible, keep. It simple some people augmented plays to the to mimic other treaters, that's, how you should be doing you should only take setups that mimic perfection. This. Is bike right in the green red is, absolute, perfection, maybe. Even out on this lower high gear either, way you have a nice 155. Average risking roughly 5 cents on what's the reward as we, continue on throughout the day this. Thing does nothing but fade and, then there was an after-hours offering. So. Some really really decent profits, were able to a year. Last. One hole, very. Very very similar situation. To AD yo. If. Not I would say identical. Boom. You have this really nice first, green day it's, not a multi-day, runner but, it's a really nice extended, versatile, breed a roughly, a hundred percent from its lows the. Next day it got down let's. Take a look at the intraday chart. So. God this is the day before we're had this massive run and put up a bunch of resistance, up and breathe I'm such, a massive volume 50 million shares turn up there makes. You think you can get everything gilded bring back resistance. Let. Alone the next day I'm spiking the lows, and. That's what I weigh. Heavily into my tree, how. What's, it going to take for the, stock to you know move more than 100 percent of the day on such a massive, volume, this. Next day become. The market open and. This is where it close. I'll. Be a little bit higher top. Of those perks next. Day we've got the market opened and. This right here is market open we've, got down 20 cents and we had lower just. Like aeo we, can sold it for a bit and then have that really nice spike up for its pre-read roughly 15 percent and. Again Big Green rejects with a lower high and we fade say. We say we paid off and. Then eventually, just. Like a meteo which, does not happen every time it's surely a coincidence. We. Got inaugurated and. This dog can all be that with dollar client, again. Really, really good, paint. The. Name to get lucky goes after all our offerings, but that's kind of the benefit of shorting these piece-of-crap, stocks. Piece-of-crap. Claims habit. So. The moral of the whole video lesson is focus guys and. Girls you really need to focus on, on your place my focus has been backside I hate. Showing first remade on less foot recent too and I have my reasons I have my edges, and I'm. Very really short for screen days and if I do and I'm violating my rules I take losses and I. Mean focused, enough to realize that as I've. Cut out most of those traits and I'm specifically, shorting backside moves I know a backside moves I look like generally. They are red news keep it black and white keep it simple if you don't know what a backside is wait, till the stocks right up to multiple rebates that's generally, back side keep. Your focus, wherever you're good experiencing, consistency, continue, to watch there there are so many ways to get distracted don't. Be a sheep. Hey. Tim Sykes millionaire, mentoring 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.