When Preparation Meets Opportunity
- What's up, Tim Sykes, millionaire mentor and trader here talking about the ins and the outs of the stock market. I'm very proud to share everything I've learned the hard way over 20 plus years. Never forget that 90% plus of traders lose.
I'm gonna actually include a big disclaimer below this just to make me look a little thinner. I've gained a little weight over the past few months because the market has been on fire so I'm trying different stuff. Maybe this disclaimer will help and it should help you understand that most traders lose.
I don't want you to think everyone's making so much money. That is why I'm so proud to show you what I do, what works for me and my top students because it's very specific. You have to be very meticulous and frankly, you're welcome to do whatever you want, but I'm still gonna try to cut through all the BS. I'm gonna try to get rid of all the stuff that doesn't work because frankly I've tested it all.
I teach exactly what works best for me. That's not to say that I never lose, it's not to say that my top students never lose. We lose roughly a third, sometimes a quarter of the time, but our gains are bigger than our losses and that way we protect our capital.
Rule number one is always cut losses quickly. If you actually click the link below, I'm gonna include two links. One, a video so that you understand rule number one about cutting losses quickly. And once you watch the video, you'll understand why I am so insistent on that rule being rule number one. And the second link is if you want to join my challenge, this is where all my top students are. Because they get access to all my DVDs, video lessons, a thousand plus archive webinars, and two, three, sometimes four live webinars every single week.
That way you can learn the most. This is all about preparation. And in this video, I want to highlight two specific students. Actually three students. We'll take another screenshot, Pascal.
Pascal is here, say hi. - [Pascal] Hey everybody. - We're gonna use screenshots from Jack Kellogg. One of my top students who today literally as we're filming this made over $650,000, mindblowing. Yesterday, he made about 500,000.
I have to warn you this is not normal. This is not typical. Either the size, the dollar amount, the market, nothing is typical about this but there are lessons to be learned from this madness for lack of a better word. Actually leave a comment underneath this video if by the end of this or even right now if you know about Jack Kellogg's success or Matt Monaco or Kyle Williams, I'm gonna highlight all three of them. If you understand that this is madness, leave that comment saying this is madness and I love it. When I got started teaching over a decade ago, I had a vision that I could pass down these skills and strategies to others.
My students, my top students have far surpassed what I thought was possible. This market has surpassed far what I thought was possible. I'm not even speaking perfect English, I'm not that smart, accept it. But Jack Kellogg, take a look at this screenshot. Over $600,000 in one day, I loved the way he presented it too because he's like nobody believed in me, but I believed in myself and he's kind of like sticking it to his haters and doubters, which if you know my story, I like to do too.
So Jack, great job. He's a Connecticut boy, now made over $4 million in the stock market. I just went up to his house in New Hampshire. What, Pascal and I went there how many weeks ago? Five weeks ago, six weeks ago, six weeks ago. Six weeks ago when he was passing a million dollars, now he's passing four million. This is not normal, this is atypical.
Because the market is hot, because Jack has prepared, because he's swinging some ridiculous size, which we'll get into in a second. Second student I want to highlight today, Matt Monaco. First six figure day, he made roughly $130,000. Take a look at this screenshot. He also posted a good tweet telling him about how it took him three years, three years of hard work every single day to make his first $100,000.
A lot of people think oh, it's so easy, look at this. No, you have to grind. You have to study. You have to labor. You have to be up at midnight studying.
You have to wake up at seven, 8:00 AM with your watch list. You have to be there at the market open. It takes so much time and effort in the beginning. But his tweet talks about how he was grinding for three years and then it's gotten easier.
This is the beauty of teaching. Some people say like Tim, you're always working. You're always saying study hard. Why do you want to grind so hard? Why do you want to study so hard just so that you can be an endless slave to education and the stock market? That doesn't sound fun. It gets easier over time. This is not rocket science.
I'm trading penny stocks. They're almost all pumps, they're almost all scams. It's not like we're valuing their assets.
They're all worthless. If you expect the worst out of every company, you will not be disappointed. I know that's a cynical way of looking at things, but I'm a penny stock trader. I've also traveled all over the world and I've been to many third world countries and there are many problems in this world like the elephant crisis and the coral reefs and rhinos and a lot of it is just really sad. So I see the world for what it is, the bad and the good, the potential.
A lot of people say Tim, if most traders lose, why even start studying? Well, if everyone dies, why even live? What's the point of living if we're all gonna die? You have one life. You have to maximize it. Education is the key.
Matt Monaco gets it. He just graduated college. He's actually one of my newest millionaire students. Just two weeks ago, he passed a million dollars. Now he's closing in I think on like 1.3 or 1.4 million, madness.
Like I said, leave a comment underneath this saying this is madness. And again, I'm gonna talk about size in a second, how they're actually achieving these results so you don't think I'm just bragging. It's not the money, it's the process that matters. The money should just inspire you to study. Even if it's atypical, even if it's madness, even if this market won't last, which if you're watching this video in 2022, 2023, 2025, we might look back at this as a history lesson and be like remember when the market was crazy in 2021? So be it. I want you to have the proper perspective.
I don't know if you know this, I'm gonna mention this real quick before I get into Kyle, I donate 100% of my trading profits to charity. Today alone, I made nearly $50,000. This is my biggest day in many years. Trading lots of tickers, lots of size.
I'm like losing my mind right now, but I donate it all to charity, why? Because I like building schools, I like helping animals. And most importantly, I want to teach students the process. It's not about the money that I make, it's the process by which I make or lose money. I had some losing trades today too.
I always have some losing trades, but again, rule number one is cut losses quickly. And the third student I want to highlight, Kyle Williams. He also had his first six figure day today as we're filming this. I don't know how many of my videos you've watched, but it was pretty cool. I was in Japan when I was first building my trading challenge and Tim Grittani made roughly $200,000 in a day. And that was the first time any of my students had ever made six figures in one day.
Now Tim Grittani, another atypical case, has turned 1500 of his own money into roughly 13 million over a decade. He's coming up on his decade long milestone with me anniversary, happy anniversary, Tim Grittani. He's got a beautiful family living in the Caribbean. I did not know how long it would take students to learn.
I didn't know what kind of market would be. I didn't even know if I could pass this down. But when I first made my early millions, people said I was lucky.
People said I was a fraud. People said a lot of things. I knew that there was a strategy. I knew that I wasn't the perfect trader, I'm still not the best trader. These students are surpassing me, which is awesome.
I'm not mad at them, I'm proud, but there's a strategy behind all of this. So when Jack Kellogg makes 600 grand in a day, when Matt Monaco makes over 100 grand in a day, when Kyle Williams makes over 100 grand in a day, we're not following each other's alerts, we're not all trading together, we're trading our own strategies whether we're dip buying morning panics, whether we're buying breakouts on first green days, frankly, it's all OTC stocks. Right now, OTC stocks are hot. So a lot of you watching this don't even have a broker that can trade OTC stocks.
If you have Robinhood, you can't even trade OTC stocks. You're missing out on all the best opportunities because you wanted to save your $5 on commissions and if you have a small account, which most people want to save $5 in commissions do, you're literally shooting yourself in the foot by having a brokerage that yes, you save money on your commissions, I'll give you that. You're basically a coupon clipper and yet you're missing out on potentially thousands, tens of thousands or hundreds of thousands of dollars in a day on the stocks that you should be trading if you add a different broker, if you weren't so cheap. So one big lesson here, and again, I'm gonna go into the trades in a second but one big lesson is don't be cheap with your brokerage. Don't be cheap with your tools.
Don't be cheap with your education. That stuff can grow exponentially rewarding over time if you invest early. If you cheap it out, you'll never know. You'll always think $5 on a trade for commissions is expensive if you don't invest in your education. You'll probably always be just not financially well off and there's nothing wrong with that. Some people want to do that, but if I can try to impart some of my wisdom.
I pay E-Trade $5. I think I've paid E-Trade... I'm filming this in early February.
I actually just looked. I've made a little over $350,000 in basically a month, in a week, five weeks, very atypical. Most traders don't make that, I don't want you to think everyone does, but I looked at it, $350,000 in basically five weeks of trading, which is crazy.
But I've also paid commissions of like 15,000 plus. If you go to a normal person, you say what'd you pay $15,000 in commissions? People will be like, what? No, that's too much money. But I'm making 350,000. So I'm willing to pay the commissions in order to make the trades.
I don't see why that's so complicated, but like this coupon clipping mentality with brokerages and the education, like people are like I don't want to pay for your education tip. Okay, don't, don't be my student. Don't learn, see where it takes you, see where the path of a lack of education takes you. I wish you well, but unfortunately, you're probably gonna learn the hard way. The cost of ignorance, the cost of misinformation is far more than the cost of education over time.
People don't realize that. People think that they're saving money, they're really destroying their future. They're planting their seeds to their own destruction. And I get it. Right now in 2021, you're probably like yeah, yeah Tim, you're just trying to sell me. No, I don't care.
It makes zero difference to me. I don't have the time, patience or tolerance for lazy people. If that's you, don't even talk to me. Seriously, we're not gonna get along. I'm trying to save you time, I'm trying to save me time, but I do want to teach you what actually works cause I want more successful students. That's what my trading challenge is all about.
While these students may be atypical, while 99, maybe even 99.9% of traders lose, there is a way. These people are not getting lucky, they're not frauds. It's strategy, it's being meticulous and they lose sometimes too. If you actually look at all of their trades, they're losing a third, sometimes three eighths, sometimes even half of their trades, but their losses are 300 or 500 or a thousand and their trades are 5,000 per the profits. And in case you were wondering like about size, the way to make $100,000 is lots of small trades, like $1,000, $2,000, $5,000.
No one's making $100,000 all in one trade. Well, actually Jack screwed that up. He made 162,000 on trading OZSC, but here's where the position size comes in. OZSC was panicking.
It was a perfect panic and bounce. It hit 50 cents earlier in the day. I think he was dip buying it around 31, 32.
It bounced all the way to 40. So a nice 30% bounce. He risked several hundred thousand dollars to make the $162,000 on that one trade. And he'll post it on properly so you can learn, but in case you ever have dreams of making six figures in a day, you better have six figures already.
We're not going all in, we're not using leverage. We're taking massive size. And I do not encourage that for anybody in the beginning of their journey. Go back to Matt Monaco's tweet for a second.
It took him three years to learn. He grinded, he got experience, he got know-how. That's what I suggest you do.
I don't suggest you just jump in with big size. These stocks move too quickly, you'll be unprepared, you'll probably join the 99.9% of traders who lose. I encourage you to trade small, trade with 100 shares, trade with 1000 shares, paper trade in the beginning. If you actually click the link below, I'm gonna include a link to StocksToTrade.
This is a platform that I'm proud to be an investor in. I'm a proud... I don't know, co-creator you can call it.
I helped build the platform. I was like these are the scans we need to put in there. There's 40 plus scans, but it also has paper trading where you can just practice without using real money. And I encourage that in the beginning. And if you go on Twitter, you see me talking to a lot of my students, re-tweeting students.
Some of my students make like $50 on the day and I'm like good job, great start. And then the penny stock promoters try to talk down to them like you're paying sites to learn how to make $50 and you're paying him more than that, you're a sucker. No, that's the process. The process is to start small.
You scale up over time. Promoters don't want you to think that, promoters don't want you to even ever selling these companies. They're pitching these penny stocks as the next Amazon, the next PayPal. And yet I have more money in my wallet than these companies do in their bank accounts, which is pathetic.
Right now there's a few companies, it doesn't even matter. They'll be gone in a year or two. The company name doesn't matter but these current promotions are valued at two, three, four, even seven billion dollars.
And yet they only have a few thousand dollars in cash in their bank accounts, terrible. They're not the next Amazon. They're not the next PayPal.
They're the next Sponge Tech and Sponge Tech was a pump that I exposed many years ago. The CEO actually put out a press release saying he was gonna sue me. I never got sued, why? Because he got arrested for fraud. I didn't choose penny stocks, penny stocks chose me. Now I have 20 plus years of experience and it would be selfish of me not to pass those lessons down to you. Not that I'm a master trader.
Not that I know everything, not that I'm gonna win every time, but I have these lessons and I have this cynical framework that frankly I think can help you. So I'm very proud of these three students. There's many more students too. Bryce made 50,000 today.
Brock made 50,000, Mariana. Jack's girlfriend made 88,000 today, props to her. That's her biggest day too.
All of these results are atypical. Can we put a disclaimer? Can we put a disclaimer, a big fat disclaimer? Can we put it like in like glowing yellow? Can we make it like come out of the screen and punch them and be like most traders lose, like ah okay, I get it. Like give them like a black eye with these disclaimers so it's like look, most traders lose. Is there a way to zoom in on my finger? Can we do this? Zoom in on my finger? Pretend this finger is poking you, reminding you that most traders lose, almost every single trader in the world loses. Anybody who says otherwise is going against too many academic studies.
This is enough, I'm tired. Most academic studies that have been done on day trading conclude that most traders lose. You might make some money in a little bit like if there's a bubble market, maybe it's easier, but then when the market changes, you're not adapting.
So I don't want you to think that this is easy, but this is a snapshot of the bubble market right now. It is madness. And frankly, we are capitalizing on these pumps, we're capitalizing on these patterns and we are taking size which newbies should not do. I cannot implore you enough to be safe, to be overly conservative. Don't feel bad if you miss a trade, don't feel bad if you miss several trades. Try to just be there and witness the volatility so you can learn from it and you can learn oh, I liked it by morning panics or oh, I liked buying at the end of the day, into the strong clothes and then ideally selling the next day on day two either into a gap up or ideally a morning spike or maybe you're a short seller.
Maybe you're like all these companies are worthless. They deserve to go to zero. I'm gonna short them when they first turn red on a day, which today a lot of pumps did, it's their first red day. I used to like shorting first red days. Right now, short selling is very tough. I think it's really a risky strategy.
So I adapt. I changed different strategies. If you're watching this video of me in early 2021 and you're comparing it to a video that I did in 2013 and you're like Tim, back in 2013, you were a short seller. Now you're a long, why are you flip-flopping? I'm not a politician. I don't have one belief where I'm like all for this crime bill and then I'm not for that crime bill because I've been bribed by lobbyists. That's not what this is.
I'm adapting to the market. That's what trading is all about. I laugh at some of these accusations and some of these misconceptions like you should stay true to one strategy. You are a short seller, you should always be a short seller. I think that's the dumbest thing I've ever heard.
You should adapt to different market environments. You should modulate different position size. I don't even know what I'm saying. You should try different things. So maybe you start off paper trading, but then you're like no, I'm not getting the full education. It's not real money.
So then you start trading with 100 shares and then you're like oh, this is so easy. Let me try trading with 1,000 shares. And then you do really well and you're like, screw this.
Tim says to go slow, but I get it, then you try trading with 10,000 shares and then you get obliterated. That's not a bad thing, that reinforces what I've been teaching. Anybody who loses big, I know it sucks, but if you lose big breaking my rules, that should reinforce my rules. I don't think it's possible to lose big following my rules because rule number one is cut losses quickly.
If you're new, I say trade small. Obviously anything can happen with any stock. Some of these scams just keep going, some of these quality companies never spike, that's the market.
This is not an exact science. And this is the challenge of me as not just a trader, but as a teacher. Picture your math teacher who's like normally teaching five plus seven equals 12. Every single time, whether you say five plus seven or seven plus five or if you say it in another language, it always equals 12, math is an exact science, but in the market because the market environment is different sometimes and companies are valued differently in different market environments, five plus seven might equal 14 in a bull market like this.
And you're like what? No, five plus seven equals 12. It doesn't equal 14. It does in a bull market.
This is what I've learned and this is not an easy concept to teach somebody. People are like what are you telling him about, Tim? What are you smoking, what are you drinking over there, Tim? The market changes and you must change with it. The reason why I highlight these students is they have grinded. They have studied.
All of them have been with me for three, four, five years in slow markets, now in a fast market too. They have perspective, they can see the difference. Most people who are just beginning in 2021 or maybe in late 2020, or anytime 2020, maybe the world was crazy last year. So maybe that got you into trading, but you don't necessarily have perspective of what a non-bubble market is like. These students who have been with me 2019, 2018, 2017 even when they were basically in college, guess what? They are better prepared than somebody who's just beginning.
So this is about preparation. This is about capitalizing on opportunity and this is about optimization. Optimizing your own strategy to see what works best for you, to see what works best in the given market. Then you might have a favorite strategy and you say, I'm so ready, I love this strategy, but then it doesn't work in that market. And then you have to recalibrate, or you might say oh, I'm not doing anything with this strategy and you try a different strategy and then your second strategy does well.
If you have different strategies, if you have different setups, if I can help you understand how this is all about adapting, then you're better off. That doesn't mean that you're necessarily gonna make a lot of money. These six figures in one day, this is best case scenario. The world of traders are very big.
A few $100,000 sounds like a lot to us, to like normal people, but in the world of trading, I mean there are traders who have made millions or even billions in one day. That's not with penny stocks, we have limitations and making six figures in one day, I've done it several times. Several of my top students have done it several times. It's very atypical, it doesn't happen every day, but that is near best case scenario because these companies just aren't big enough. We're already taking huge position size, but fortunately these stocks are trading 200, 500, 800 million shares per day, sometimes even billions of shares per day.
We're trading the biggest percent winning, the biggest percent winners, we're trading the most active stocks. We're not trading in liquid penny stocks, we're not believing these companies' stories, we're not believing what promoters say. We're trading the price action in the patterns. So leave a comment underneath this video saying this is madness if you're inspired. If you're inspired to study, all of these guys have studied their butts off. Mariana who's coming up as one of my top female students, we need more female students.
It doesn't matter if you're male or female, the internet democratizes everything, democratizes everything, I'm so tired right now. I've been trading all day, but I wanted to make this video. I wanted to celebrate this moment, I'm so proud of these three guys. I hope that their success inspires you.
Not just to be like wow, I want to make a lot of money, but to push yourselves to study because that's where all of this is. All three of these guys and the other guys that I mentioned and the girls that I mentioned, they are nerds. They have studied relentlessly. They have no lives whatsoever.
That's a whole another video, but that's what it takes if you truly want to succeed in an industry where most people lose. So how badly do you want to succeed? How hard will you study? Click some links below. I am proud to give as much information as I can that I've learned over the past two decades to you to help improve your odds of success.