How to Pick A Trade: Best Practices for New Traders
Thank. You, welcome. Everybody how's it going, yeah. 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 the 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 and my big-ass mouth. But, I also want to 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. We have this, would be school number 48 and 49 with, my charity foundation, and it, all comes from successful. Investing. In trading not. You know long shots looking, for a speck, of gold or oil or some weird. Mineral I can't pronounce in some country that, is, probably just going to give me malaria a lot, of these things. That you're hearing at, this conference and in investment. And not Wall Street in general are just such long shots such. Guessing games you're, just not gonna get rich I don't mean to on people's you, know 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, 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 there 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 four hundred thousand, unrestricted. Shares or off-the-book, shares some crafts, like that for. Me I'm never going to be a hundred percent perfect this. Is my profit chart over. The past twenty year, if you look on the right or, if you just look at an online you, follow me on Timothy sites 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 there's, something even looks to be going wrong I. Talk, fast I trade fast, I think fast I act fast in that way I don't get damaged once upon a time I believed, in some of these pipe. Dreams in these companies and I lost $500,000. Plus it wizened. Me the up I don't want to lose $500,000. Plus any more it, sucked, for several months it created a drinking problem, it, kind of 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 of when I trade if, you become one of my students, you'll, see that 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 5,000, and I was like well if gold is gonna go to 5,000 why can't it break mm, you know if you're gonna have these big pie-in-the-sky moves, you're gonna have some uptrends, first but. They're kind of preying on your need, to you, know 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 percent they're up 30 percent 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't 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 pharmaceutical, and that's why the pharmaceutical, industry is booming, the, best place jump out at you okay 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 up that you guys all showed up in my intervention and your.
Degenerate Traders, too and this 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, gimmies I have a few, haters online. But. The. Haters actually, one guy in particular said, sites why don't you be a real man and trade Forex, why, don't you trade some you know real stuff rather, than your your little, penny stock guineas and I'm like I'm gonna stick with my little. Penny stock Jimmy's they made me rich Forex. Five out of six forex, traders blow up in the first six months if you look at odds and stats the, odds are stacked against, you you know ninety percent of traders lose 70. Percent of investors can't even beat the S&P 500 which, goes up in a lousy eight to ten 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 oh this is good this is bad this is good this is bad understand. That it's 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 going to 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 patients, buying, stocks, only, when they're hitting new highs with, catalysts, in our favor ideally, in a hot sector which, none, exists 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 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 in 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, I have to say that in every speech that's a real disclaimer, right there forget about just 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 Wi-Fi is, terrible. I'm you, know 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, now 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 you know I'm I'm a trader I'm a trading, educator, there's a thousand, people in my chat room 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 there are a lot of them are normal people with like these superhuman. Abilities. My, superhuman, abilities, that I'm a, degenerate and, I need to 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 it 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 over, trading 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 patients 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 in trading. Like a coward, and I know this isn't what people want to hear everyone's, always surprised when I say it because I turned a few thousand into several million so they're expecting you know 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, an overly. Patient, and cowardly. Even overly, cowardly, I take my profits, too quick you know I did, an interview with kit Co 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, idea I take my profits at 10 20 30 % I go, for singles I don't go for homeruns 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, you know 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 are asking me what's the hot sector right now there's, nothing okay, we had Bitcoin, we had cryptocurrency we had weed we had CBD, before, that we had Ebola police equipment China.
Biotech. Med tech nanotech. There's. Always some, sector, being hyped in the past but right now we're kind of 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 you know some, nice. Consolidation. After a big multi decade. I don't know so when, I don't know I do nothing, and this. Is a game of discipline, okay I know 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. Weird, district, off the coast of Canada and you think that's the secret well maybe it is okay I I'm, not a professional, miner I I do know ODS and if you shoot for those, very. Low odds type plays, you're just going to 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, Raider that I've mentioned a few times so, do you have enough patience, to wait for the best place I know you all want to 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 PU RA this, little piece of wannabe, CBD, play and the, stock was spiking from you know to three cents all the way up to twenty four cents twelve 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's 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 CVS I another, wannabe we'd play these. Are my kinds of stocks you know I don't hold the whole time I again, on the, run ups I try to take ten 20 percent then, I sell usually, too early I sold way too 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 is done absolutely nothing and I know they're putting out 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 I mean this kind, of looks like gold to 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 a story they fall in love with a 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 ten 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 and 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 gray Thani turned, fifteen hundred 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 are all public me and all my top students show every single trade he's, winning just, what, is his average gain. $2,800. My, average gain is about two thousand dollars so, I'm trying to make two thousand dollars two thousand two thousand, 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 in 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 you, know all you need is a few million dollars in life I think 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 roomful of business school kids you all all they want to do is be a billionaire, and I was like all your dreams you're wrong make, a few million dollars that's all you need. Is actually bombed on YouTube too but I'm serious I think that's the best like I don't want to be a billionaire if I ever make some, how if I you, know latch on to the right investment, or trade and I make you know a billion dollars I'll donate 98. Percent 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 out 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 something that is happening there might not be a hot sector right now but, there's still every, now and then good place so Fannie Mae and Freddie Mac kind. Of controlled by the government kind of Nod 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 I made a few hundred bucks this, is a nice break out each one of these represents, one candle, and Friday the stock was up over 30% this. Is my kind of a chart okay it might not have a hot sector it might not be the hottest market, but, with that news with, a 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 $3,000. 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 earned it with this technical, breakout with the news catalyst, with, its history of being a former, runner those, three indicators, were enough for me even though it's not my ideal kind of play because 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, you know Berkshire Hathaway's, annual. Conference, that's fantastic, if you want to become a millionaire by, the time you're a hundred you can buy some titanium. New hip just. So that you can you know waddle out of your mansion I don't, know about you, know long-term, blue, chip investing, I know about short-term, trading. A piece of stocks where, it's predictable, because most of the people trading these piece-of-shit stocks are for ons so you have an advantage I gave an, example, during. My speech yesterday that oh 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, like 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 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 idiots, you, can probably make money. Off them somehow you can find your angle versus. If you're at Berkshire Hathaway there's, a lot of people who are really smart really, wealthy I don't want to 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 a piece of shot a piece of sector, stick, with the piece of 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. This. Is how my top students and I became multimillionaires, I know it sounds crazy but it's true, succeeding. And really. You know thriving. And investing and trading is hard enough remember, 90%. Of traders lose, roughly. Maybe it's 95 percent there's been a few academic, studies so, most people lose if they say they're winning they're usually full of 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, 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, student.