If you’ve heard of the turtle and rabbit, you already know why newbies should act small to begin with.
For a lot of traders, this doesn’t make a lot of sense. I get it.
You read my guide to penny stocks. And you may have seen many of the 1,400+ free videos on my YouTube channel.
You might even be in the Trading Challenge with me and my top students. You work hard and show up every day. You see what is possible and you can hardly wait.
And then I tell you not to aim high What is it about?
Am I only trying to protect myself when you fail like most traders do?
I’ll tell you what I always tell my Trading Challenge students. Those who take notice of my words are working to convert their slow starts into exponential gains. *
Try it out and don’t just skip to the end:
Daily inspiration from @Jackaroo_Trades One of my best https://t.co/occ8wKmlgm students became masters: study 20 months and do ZERO, 27 months to make $ 1 million, 1 month for my 2nd million, 3 weeks for my 3rd million, 10 days for my 4th million, 2 days for my 5th million. pic.twitter.com/luM0WfhZdB
– Timothy Sykes (@timothysykes) February 12, 2021
Of course, you want to have the success that Jack Kellogg is having. Look at that curve, go ‘to the moon’ as they like to say on Reddit. *
But that’s not why I’m showing you Jack’s profit chart. I want you to look at the first 20 months instead.
Then I want you to ask yourself … Is it worth waiting for your trading goals?
(* Note that these results are not typical. These top traders and I have invested the time and dedication and have exceptional skills and knowledge. Most traders lose money. Always remember that trading is risky. Never risk more than you can afford.)
Trading Small: Learn to Love the Process
You know the “wax on, wax off” part of the “Karate Kid?”
That’s how we do it here. It is important to have goals. If you don’t want to improve your trading results, what the hell are you doing here anyway?
Don’t skip any steps.
Check out this great deal my newest millionaire student Mariana made. * It’s great because it shows their work …
It shows her evolution on the same type of setup she practiced as a small account trader.
This is a great tweet from my best https://t.co/occ8wKmlgm student @mmhincapiee who made over $ 200,000 in the LAST WEEK / is now over $ 700,000 in profit despite being in her early 20’s , to those who are kidding my students for small profits, it’s GOOD to start small and grow later! https://t.co/y2Ld7tHDZc
– Timothy Sykes (@timothysykes) February 15, 2021
Your success is extraordinary, but not accidental. I want to teach you that.
She came to work. Everyone. Single. Day. The profits she made were secondary. She judged herself whether her setups worked. Mariana breaks it down in this video:
Her first three months studied and acted little. She watched all of my DVDs included in the Trading Challenge.
She knew her goals were greater than winning the next trade. And she knew that the way to get there was through small profits.
Now it has hit $ 1 million and is barely over 20 years old. *
Aim small, miss small
This is a rule by which I live and act.
I want you to understand that the small trade can actually be an advantage.
When you play by the rules of Wall Street, you’re looking for 8% -10% a year for the millions or billions of dollars that you control. You want to beat the S&P 500 and take home those additional 1% to 2% management fees.
Wall Street traders don’t trade the highly volatile penny stocks I teach my students. Afraid of these stocks? They are the foundation of my FREE Volatility Survival Guide that I created to help traders understand their navigation.
Wall Street traders already have a lot of cash in their accounts. Your mission is to do a little more.
But that won’t work if you have a small account. If you start with $ 10,000, 10% per year is $ 1,000. Next year it would be $ 1,100 …
With a little luck and compound interest, you might become a millionaire by the age of 70.
I teach my Challenge students patience – but not so much patience! While I want my students to make small gains, I want them to aim for even smaller losses and …
Reduce losses quickly!
Risk management is the key to good setups. This is rule # 1 – hopefully you already know this.
But what does it look like when you act small? Just like when you trade in any size.
You act small because you want to optimize your process without risking too much money. And if you reduce your losses quickly, you have already cut the most important part of it.
Go for singles, not home runs
When I say singles, people want to rush to the plate. What I actually mean is that you should go for singles When you’re ready.
Baseball players don’t start in the big leagues. For every gamer you see on TV one day, it took several lifetimes of practicing to get there. And somehow people accept that as the price to pay for success in sport.
But even a few months of practice is too much to ask for from most traders.
I think this is because they are confused about what trading success looks like.
We’ve all seen Hollywood’s version of the bargain. They’re basically cowboys in suits. It’s fun to see, but it’s not a good trading strategy.
There’s a reason most commercial films end badly.
When the media reports on traders, they look for boom-or-bust stories. Heck, I even wrote about my own in An American Hedge Fund. You can read everything for free.
Spoiler alert: I lost a lot of money before finding the disciplined approach I still follow today.
Nobody wants to hear about the traders sticking to the settings they are best at. You are boring. That way you don’t get a lot of Twitter followers. But this is how you can work to become a self-sufficient dealer.
My top students all started out small
Do you know Tim Grittani? Almost 10 years after his trading career, he is my most successful Trading Challenge student of all time. * Now he helps me with the challenge – he helps newbies, moderates the chat and gives webinars.
He has made over $ 13.5 million to date. * This is more than TWICE what I’ve done in my 20+ years!
But no one paid any attention to Grittani for the first eight months of his trading career. That was the time it took him to get over the PDT. *
He didn’t swing at the fences then. In fact, he didn’t act at all for the first three months. He just finished college.
When he thought he was ready he went all in … and blew up his account.
He went back to work and saved $ 1,500, enough to start over and trade small.
This time he got it right. And he only judged himself when he worked out the kinks in his trading strategy.
He worked hard to top the PDT – $ 25,000. That’s the amount he sometimes makes in a single trade. *
But Grittani’s story is the norm for top traders who find consistency. * They take the time to act small before scaling …
Like the 20 months Jack Kellogg spent building his knowledge account.
Or how Mark Croock spent almost a year under the PDT. Now he’s made over $ 2.7 million. *
And the seven-figure student Kyle Williams? * Almost two years.
Matt Monaco spent nearly three years on the PDT en route to $ 1.5 million. *
(* Again, these results are not typical. These top traders invest time and dedication, and have exceptional skills and knowledge. Most traders lose money. Always remember that trading is risky. Never risk more than you are can afford.)
Why these top traders are still part of the trading challenge
So study and swap small for a few months … then things will go up, right?
Not quite. The traders who meet my challenge and reach major milestones all know something important: their market training never ends. So many are technically no longer students, but they are still part of the community.
Some are also inspired to give back to the great Challenge Trader community. I’ve hired a few to help me out in my education business.
So many help moderate the chat room and give webinars. We have over 50 Grittani webinars there – out of thousands. Grittani’s training material is great – and not because it’s perfect. It’s great to learn from him because he’s honest.
Just watch this video:
A few minutes later he talks about the challenges he faced Years After becoming a millionaire. * From mid-2015 to mid-2016, its earnings chart only goes sideways.
He took a number of heavy losses. And he glanced hard in the mirror.
It would have been easy for Grittani to blame the market. Instead, he doubled his degree. And he scaled down his trades until he got them right. See? Acting small doesn’t have to be just for newbies.
The bottom line for small retailers
If you listen to some so-called trade gurus, it’s a race to overcome the PDT. And then you can get into all the trades they publish … with no evidence and only with big profits.
That is why I am firmly convinced that there is transparency in this niche. Yes, you can – IF you are willing to invest work, time, discipline and dedication.
My Challenge students understand that. Otherwise, they would not take part in the Trading Challenge. I do not accept all of them.
If you think you are ready to act small as you learn the process and rules before you even get your own way, I would love to hear from you.
I cannot guarantee success. But I can promise that I will share everything I have learned in more than 20 years of trading with you to help you prepare. You in?
What do you think of the little bargain? Where are you on your journey Let me know in the comments – I love hearing from my readers!