Several Examples Of Disciplined Trading
- Good morning, Tim Sykes here. Another little trade recap on two trades. The good news with a slower market is it gives me more time to kind of step back and make these videos. So leave a comment below if you like these little trade recaps. Remember challenge students live webinar, Q&A today, 4:00 to 6:00 p.m. Eastern.
So come ready with questions. To everyone emailing me and asking me about you know, how do you learn for life as a lifetime challenge? Please email firstname.lastname@example.org. I've been mentioning that you can learn for life.
It takes away you know all the pressure to, you know, really cram in so much studying all at once. And frankly, some students burn out because, you know, they don't have enough time to study everything. Learning for life helps you see that this is a marathon and not a sprint.
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So again, email email@example.com in the title write lifetime challenge. And my team will tell you all the details about that. I'm watching ASTI here 10 day chart. Nice little breakout over the past few days.
Already got a few questions about it. So I wanted to make a video. Two trades today, one win, one loss, but the win is bigger than the loss. I underestimated them both. So it's a good habit to get into where, you know, I'm trading extra safely.
You see that I have a lot of like, plus or minus 500, $1,000, $1,500 type trades as opposed to the past few weeks where I've been having five and $10,000 type profits. I'm just really keeping it you know, tighter right now. Like aim small miss small mentality just because we're not seeing, you know, the truly massive runs. ASTI, I mean, frankly, this is impressive that it's spiked this much.
The questions I got is, you know, they did a financing. Normally people think financings are bad. Yes, they are typically bad. I mean but ASTI got the financing done at four cents, you know? They raised a few million bucks at four cents a share. That's actually pretty impressive.
Sometimes, you know, when you can raise that much money, especially like a low price stocks. I mean, most of these one, two, three, four, five cent stocks, have no shot at even making it let alone, you know, raising money. Like no one's interested in giving them millions of dollars. They're all nearly bankrupt. So for a four cent company to pull off a financing is impressive.
At a price, you know, it was announced free market today, the stock was trading at 0.44. So we're only talking like a 10% discount to the current price. That's a positive.
So people are asking why this spike? Because it's impressive. And I said this, you know, in my alert. I said it's impressive that this company even pulled off financing and it's a former recent runner. You know, if you remember it from a few days ago, sorry, the charts in level two are a little laggy. By the way, all software's are having problems right now. You know whether it's E-Trade or StocksToTrade or Schwab or Fidelity or TD Ameritrade.
Everyone's like, oh, this is laggy. Welcome to the market, okay? We're in a freaking bubble here. All these companies are overwhelmed. So you guys can bitch and moan all you want.
It doesn't change anything, just contact customer support. I'm so sick of people saying this in the chat rooms as if like, oh, you posted about the software issue in the chat room. Oh, it's all magically gonna be like fixed. Sorry, I haven't had my coffee yet.
But there's no reason to bring it up in the chat room. Focus on alerting stocks in play. There's a limited amount of brain capacity and chat capacity that we have it should be focused on potential plays. If you have any issues with no matter what your broker is, no matter what your software is, contact your broker, contact your software. But at the same time have the proper perspective.
It's not because the companies don't want to give good customer service and good products right now. It's because they're overwhelmed, okay? When you have software issues we all have it. No one's special, okay? And all of these companies are overwhelmed because they have more customers than ever.
This is a bubble and it should help you understand that. And you should have the proper perspective. So if you see me like saying to somebody in the chat room, like you know, contact your broker, contact your software provider, do it. Don't clog up chat space. There's too many potential lessons in stocks in play.
That's what the chat is for. Not for bitching and moaning about software or broker issues. Contact them.
You pay the software, you pay the broker, make them deal with it, why do we have to deal with it? Frant aside, ASTI you know, I sold them a little too soon too. But again, I'm very aware of my profits and losses on the day. I know that a lot of it my top students turn off their profit and loss because they wanna, like give these charts maximum amount of time. I mean, this wasn't like a perfect play. This wasn't like, oh my god, they did a financing at 10 cents, it's going to double. It was just a speculative morning spiker, where I was like, hey, you know, this is impressive that they can do this.
Let's see how far it can run. I didn't get it on a dip. I thought I was chasing a little bit. So when I have a speculative trade like that I'm not gonna be aggressive, especially in this market. So, you know, that's what that trade is.
But I am happy that, you know, it spiked, you know what, another half a cent a share? What did it hit 0.57 and I got out at 0.53, yeah. So, you know, again, I'm doing this like 10,15 minutes after the trade. So it's still higher than where I sold it.
I think that's a good habit to get into where you, you know, you leave a margin of error, you leave, you know, more room, you know, to screw up if you ever need to. And I gave a second alert, even though I was already out. And I said, you know, if I was still in it I'd be out at 0.55. So even that one, I underestimated the 0.57 highs.
But on speculative morning spikers in a slower market, I have no problem under estimating. Now let's talk about my loss. Because I think there's good lessons here too. You know, MSTO I said, this is a nice morning panic dip buy goals to profit five to 10%. But I said cut losses quickly if no bounce since it's not a multi day winner, just a one day runner. So again, I know that this is a slower market.
I know that this is not like a multi week, multi month runner, like I prefer to dip buy, it's just a one day runner. It could bounce, but it's speculative. So on speculative plays I'm gonna trade smaller, I'm gonna trade quicker. I'm gonna trade safer.
And again, a lot of this is just having the right perspective. Like some people who don't know the difference between a one day runner or a multi week runner, and they're aggressive on this. Some people, you know, were making a lot of money a few weeks ago and they don't recognize the market shifts. So they're still aggressive now. And now they're losing. A lot of this is just adapting and putting yourself in the right position.
So even though I have a loss unlike most traders who can't show or talk about their losses, I'm not embarrassed. You know, loss has happened to everybody. And, again, I followed my rules in the commentary before I even exited I said what's gonna happen.
You know, where if it doesn't bounce out. I know sometimes I double up. I'll double up if it's a multi week runner, if it's a hot market, if it's a big panic, if it's a perfect play, if it's a better setup. This was not a perfect play. This was a speculative setup.
Both of these trades were speculative. There was a speculative morning spiker and a speculative, you know, morning panic. I traded them both too conservatively as it turns out, but I still made money overall between the two. That's the strategy here where I'm adapting to the market. I'm adapting to the setups. And I'm playing it, you know, overly safe.
This is a good thing to get into, you know. Some people were like come on Tim play it let's save, no. On speculative plays I'm gonna be extra safe.
So MSTO by the way, you know, I was just making fun of its PR yesterday. You know, I bought it yesterday, but I underestimated it yesterday too. They said that they're gonna list their autoparts basically on eBay and Amazon. And they crafted this whole PR where it was like, oh, we're working with Amazon and eBay. And people were like, wow, look at this little tiny company.
There's gonna be an auto parts marketplace with eBay and Amazon. This thing is worth $1. I saw the promoters pumping it. It's literally like the year 2,000 all over again. The press release was a joke. So today, I'm not gonna be aggressive on it.
Yesterday, I just wanted to be a part of it. I just wanted to like, you know, buy it and see what I could do with it. I was in it somewhere in here in the ones. I didn't, you know, even think that I can get to the twos.
But this is the market that we're in and I think it's important for me to trade this madness. Let me show you my trade from yesterday. I think it's important so that you understand again.
Yesterday I made a little under 1,000 on it. I had a loss on PONGF by the way. A lot of people are asking me questions about that. I only got out of PONGF because WSGF came about. Both of these were two stocks to trade breaking news plays.
You know, adding crypto to their businesses, right? So PONGF is going to build a virtual casino based on crypto, which I think is just laughable, but Atari is like this old blue chip companies so I can see the news kind of going viral. And PONGF did spike more later. It was a great stock to trade breaking news. It was right here when the news came out and it couldn't really hold its game so I got out of it. And then later it, you know, went up.
It was a nice 20% bounce over, I don't know what it was, like, two or three hours. So there was more upside there. But I got into WSGF because this is a former runner and they added crypto. WSGF was my biggest winner this week.
And I sold it right near the highs on the breaking new spike. So I sold that one well. So again, even though I underestimated PONGF, what did I lose? I lost 15 bucks and I got into a play where I made several 1,000. So don't worry if you sell too soon, or if you protect. Or if you're like me and like I can't take two trades at once. I'm looking at every single trade.
I'm looking at the level two. I know some people don't use like the one minute charts that I look at, they're like 15 minutes. They don't look every second.
I'm you know, hyperactive, okay? I'm impatient. So I don't mind this at all. You know, if you offer me two trades and you say on one trade you're gonna lose 15 bucks, on the other one you're gonna make over three grand. I'll take those two trades every time, right? And the funny thing is, I was actually more right on PONGF. But it's not about what you're you're right on.
It's what you can capture, right? So I'm proud that I was right on PONGF. I don't mind that I lost because I found what I thought was a better play, even though WSGF turned out to not be a better play, but I captured it better. So this is trading, which you know, you start to understand why do 90% of traders lose because it's not about good versus bad companies like newbies think.
It's a lot of, you know, little nuances. The most money that you can make comes down to the smallest details. So I know that it can be overwhelming. I think these trade recaps help. Again, leave a comment below if they're helping you. I'll try to do more of them when the market is slow when I have time.
Otherwise, I'm busy trading and giving commentary. But I see kind of an opening here. And you know, this is why I offer a lifetime challenge option, you know. And again, email firstname.lastname@example.org
for lifetime challenge, not me. I'm overwhelmed as it is. But the more that you see this stuff you start to see, you know, are you good at holding one stock at a time? Are you good at holding multiple plays? All I talk about is myself because I want you to learn my process.
I want you to learn my mindset. But you're different from me, okay? You have a different mindset. You have a different personality. You have different strengths and weaknesses from me.
Maybe you're not too impatient. Maybe you can hold two or three stocks at a time. Maybe you don't wanna trade, you know, overly saved like I do.
All I can do is tell you the way that I'm thinking, the way that I'm training based on my own experience. And I think that's a good guide to, you know, helping you build your own process and your own plan. Like okay, if Tim does this let me try this. Oh, if Tim does this let me think like this.
And that's how this is. Not that you should copy me, not that you should follow anybody's alerts. This is all about you becoming self sufficient and finding what works best for you.
So MSTO I took a loss. A lot of people will be like, wow, Tim, you lost, you know, a lot of money on that. But for me, it's a paper cut. It's a scratch, it doesn't matter. Because, frankly, it was a speculative dip buy.
You know, I didn't believe in the press release. I knew that it was a joke. And, you know, there actually was a good bounce, but it wasn't this first one.
I got in on this first one. And you can see this one green candle that was what I was faked out by and then it made new lows and I was out. The second panic down here at 21 actually was a good dip buy from 21 up to 26. So it did bounce 20%. I was just one panic too early.
And on speculative defies, you know, some people say well, why don't you just wait for the second one? With one day runners sometimes you get you know that first panic and then it turns around and goes green. You know, because it turns into like a two day runner. So that's what I was thinking it could do. Obviously it's not doing that, it's holding near its lows, it's dead to me now.
But on one day runners I'll often be quicker in and quicker out just in case it has the potential to go quick on a day two type spike. That was my thinking there. So I was early, I was wrong. There was a better dip buy later on, but I don't care.
You know, the stock didn't do what I wanted. I played overly safe and I moved on to a better play. Very similar to PONGF and, you know, what was it? WSGF yesterday, right? Like two plays together, one loss, one win.
As long as your wins are bigger than your losses and, you know, sometimes it won't be this perfect. Sometimes, you know, you'll have two losses. Again, you know, you need to get a lot of data. You need to get a lot of experience. This is not an exact science.
You can't just be like, Tim, you have two wins, or you have, you know, out of four trades you have two wins and two losses, but your wins are bigger than your losses. You're nailing it. I had four trades, and they're all losses, I suck. No, you don't suck.
You just have four trades. I have 1000s of trades under my belt. It astounds me that people think that like they're gonna be master traders, or even good or profitable traders with like a few trades or a few dozen, or maybe a few 100 trades.
It doesn't work like that. Let me just remind you a big picture thinking, right? Like, these are little trade recaps. I'm trying my best on every trade, but I'm following my rules that keep me safe. But again, this is built on 1000s and 1000s of trades.
Two plus decades of experience. So if you're overwhelmed, if you're losing, guess what, that's normal. The market also just changed.
So if you weren't making a lot when the market was so hot that's understandable too because frankly, it was overwhelming. There were so many plays. All my top students who have made the most over the past six months when the OTC market really got on fire they've been with me for three, four, five six years. Some people messaged me and they're like, oh, I've been trading for a month and I still don't get it.
And I'm like, yeah, keep it up, you know. You're not gonna get it so easily like in the first few days, or first few weeks, first few months. The reason why I say this is because again, the way that I teach is different. I'm not like these other BS chat rooms where it's like, follow the leader. You know, and I'm live streaming to 10,000 people and I'm just buying a low float stock.
And I'm telling everyone to buy it and follow the leader. I don't want that, I don't want you to ever follow me or anybody else, there are no leaders. It's all about you. So if you look at my top students, if you look at what makes me successful, it's because we're trading our own plan. We've learned what plans we're best at, what strategies, what setups. We're trying to adapt.
We're trying to cut losses quickly. And every single day, whether we win, whether we lose, whether our wins are bigger than our losses, we learn, we get better. So that by year three, four, five, six, seven we have so much data, so many examples of good and bad.
We know what's good for us, we know what's bad for us. We can adapt, that's not to say that we know everything because the market changes. Sometimes we're wrong. Sometimes I'm impatient. But the past two days, really the past three days, all this week, I'm very, very, you know, safe, right? And I might be at 6.8 million, but, you know,
year today I'm playing a very safe. Year today in two and a half months I've already made 600,000, okay? Keep this in perspective, because, again, I know some people are like, you know, don't look at the overall profit and loss focus on the chart, that's fine. For me, I'm Jewish, I think about the money. I donate all of this to charity. So I want to donate the most possible. But keeping things in perspective, again, because I'm a big data kind of guy.
Even though I'm not an Excel spreadsheet freak. I don't use Excel spreadsheets. But I have an idea of the big picture. This already in two and a half months in 2021 is my third best year in 20 plus years. And it's only been two and a half months, okay? I'm already on track for the best year ever.
Now, whether I hit a million or not, we'll see, I just take it trade by trade. But again, I have the proper perspective on my losses. I have the proper perspective on my wins. I have the proper big picture perspective.
All of this comes with a lot of testing, a lot of refining, a lot of practice, and a lot of experience. So you need to get that. When I bring up lifetime challenge I'm not saying that you're like a slave to the market for life. It's just a perspective shift that says, oh, the market will always be here.
Oh, there's gonna be morning panics. There's gonna be morning spikes. There's gonna be good markets, there's gonna be bad markets. Oh, I'm a student for life, I can learn from everything. And that way you put yourself in the best position, two, three, five, 10, 20 years from now. That's the mindset to have.
Not how much money can I make right away my rent is due next month. That's the wrong mindset. If your rent is due, if you're counting on trading profits, if you're like, oh, I'm gonna quit my job and makes so much from trading.
That's the wrong mindset. You have to be patient. You have to be willing to be wrong. You have to be willing to lose. You have to be willing to learn. The most money that you make will be in the long run.
So you need to stick with it. That's today's lesson. Good little trades for me one win one loss. It's okay I managed my loss. I was turned out to be you know more right on both of them.
I underestimated both of them. That's a good lesson. When you can make money and learn that is a win win. Again, leave a comment below if you want more trade recaps like this. Challenge students give me some good questions roughly, what six hours from now.
4:000 to 6:00 p.m. Eastern today. See yah.