Part time penny stocks workflow – Rule 1 – Get up Early #PTPS

In this post I would like to cover what I think to be one of the most important methods to follow to be a successful trader. While in my mind it is important to every trader, but particularly if you are a part timer there is immense value in getting up early on a consistent basis.

I have found that most traders particularly part timers prefer to stay up late and research then drag themselves out of bed 10 minutes before the market open and expect to be prepared and ready to trade. I’m sure I will get countless counter arguments but I think that it is truly idiotic and naive to expect to be able to trade successfully in the morning and even throughout the day without some sort of consistency and routine based on a consistent rise time.

One of the biggest reasons I think getting up early consistently is important to a trader is due to the fact that trading successfully demands intense discipline. If you can’t drag your lazy ass out of bed early and consistently how do you expect to apply any sort of consistent discipline to your trading? Gamblers sleep in and refuse to put in the work away from the table, traders get up and prepare and approach the market with a plan.

By getting up early and implementing a consistent workflow you can approach the market confident and with your thoughts and mindset locked in. I’ve found days that I do not get up on time and rush through my research, or worse yet complete no research and expect to trade only on the information available at that instant, I will consistently enter “random” bad trades. To truly be prepared I believe a routine needs to be created, and by refining and following this routine, you will become more consistent, more confident and more importantly more patient. I have NEVER entered a “random” trade on days I rose at 5AM and completed my entire workflow routine. At times it’s amazing the heightened level of patience on fully prepared days. Of course that increased level of patience will invariably create days of extremely low trade volume. And on some days no trades whatsoever. I will cover “not trading” extensively in another chapter, but at this point just know that “not trading” is the most powerful tool of all to the part timer!

Considering the lack of interruptions the early morning hours are also greatly valuable to research and prepare. Since I’m assuming you have a day job and family and friends, you are subject to 100’s of distractions in the evening. One thing I can count on is barring total emergency the hours of 5AM to 7AM are mine and mine alone. No phone calls, no emails, no interruptions. Not only does this allow you to focus, it allows you to truly learn and get your thoughts in order. It also allows you to work through your preparation process in a much quicker and more efficient fashion. What could have been 2 hours of research in the evening could be potentially reduced to one hour or less in the morning. Not only are you free from interruptions, you are hopefully free from scheduling conflicts as well. The part time trader will have numerous evening commitments that could potentially sidetrack research time. Family, friends, work, and hobbies should be utilizing your evening hours NOT the fucking market.

Another chapter will cover the addictiveness of the market. But at this point I will press the point that by disconnecting from the market in the evening you will be far less crackheaded about your desire to follow the market. Spend the time where it really counts, with your family, friends or learning and hobbies. Don’t waste 1/3 of your day looking at flashing green and red numbers.

The last and in my mind most important aspect of rising early and sticking to a routine is the confidence and cockiness felt by knowing you got up early and prepared while 99% of your competition in the land of penny stocks, slept in, is hungover, and probably ate fifteen donuts for breakfast. This could be simply my personality, but I have to believe in the world of trading it is valuable to know subconsciously that you are prepared and better then the other guy. On days I follow my routine to a “T” I am ready to kick the asses of every lazy penny stocker out there, and over and over those days are by far my most profitable. The only days they are not profitable is when I don’t trade. The likelehood of taking a loss can only be reduced by preparing not eliminated, but again in my years of experience the potential for making a bad trade is extremely reduced by preparation.

Tomorrow I will detail my actual workflow routine after rising and preparing.

To the reader, please keep in mind this is in essence a rough draft for my trading book. Please critique and comment, while the writing is a little out of sorts and more or less stream of consciousness I have decided to post the rough drafts here and use this blog as a workspace for editing. I certainly hope the final product will be much better structured and more clean.

Thanks

10 thoughts on “Part time penny stocks workflow – Rule 1 – Get up Early #PTPS”

  1. Not sure if I did a very good job of fleshing them out into a post, but here are my pre post brainstorming notes:

    Discipline is important getting up early shows a desire to work hard and demonstrate discipline
    Time to wake up your mind and research
    All the latest news is out – other traders watchlists/newsletters
    rested and ready, not feeling rushed at the market open
    feeling unprepared will create unprepared “random” trades
    I’ve found patience is bred by feeling prepared and unrushed bad trades are made when feeling unprepared
    There is value in knowing most lazy traders sleep in, a feeling of confidence and businesslike approach, gamblers sleep in. Traders, get up early and prepare
    creating a routine is very important to feeling like a real trader.
    Routine creates a process and less likely to make mistakes or miss opportunities
    Quiet morning hours allow time to think and prepare, no annoying phone calls emails/etc
    Better to keep the evening free for family friends hobbies etc. Valuable to not spend all the time thinking about the markets, waste of cognitive surplus and creates overtrading
    Preparing early lets you flow into the trading day ready at the open to trade or skip the morning if you find no good opportunities
    Time your routine, consistency is immensely helpful. Keep getting up earlier until you feel you have nailed your morning routine. Then CONSISTENTLY get up at the same time to allow for your routine.
    I feel tremendously more confident when prepared. And find that that prep allows more patience
    Consistency in all things breeds success, especially in trading

  2. There are a lot of great ideas and lessons learned here. It is definitely something to celebrate that you have learned the best way for you to focus and perform as a trader. Lance over at YourTradingCoach.com has a whole section on his morning routine; Dr. Steenbarger ditto; SMB Capital ditto; and I imagine the list could just go on. Especially since you probably focus on the times around the Open for most of your trading, getting up early is probably crucial, as you said.

    When I originally read this, I felt a slight concern about the “what works for one person may not work for everyone” counterargument. I thought, for example, that maybe there are traders that do particularly well when trading by-the-seat-of-their-pants- maybe they have great intuition who knows. Or maybe someone does market-making or algorithmic trading, so no planning or research is necessary. Nonetheless, I think that you are right in general- if you are a discretionary trader who uses a method that requires research and preparation… then you should probably get up early enough to do that research and preparation! There are probably a few, rare exceptions, but I think you are correct overall.

    Good luck on the ebook!

  3. I may start paying you to leave comments!! 😉 Awesome input thanks!! This is the kind of constructive criticism that gets me fired up to push through on the book.

    “what works for one person may not work for everyone”

    Agreed, but I also think I’m pretty niche in targeting, the “part time pennystocker” and since I’m assuming that my demographic has a day job, a life and commitments outside of being a degenerate trader. I firmly believe getting up is a key to success.

  4. Hey Tim quick question with how much did you start for that year to make 55K $ of profit. I want compare it you…. you know, to know if you got bitten by a girl ;P

  5. Roughly 15K was what I started with back in 2008 trading Tim’s strategy. Since 2009 I’ve really traded no other method, up until then I used other methods and Tim’s, of course everything else lost money.. 🙂

  6. Can you share your actual morning recipe as far as what websites,traders,screeners if any u actually use?.Ive been a timothy sykes supporter for a year and a half and will cont to support.got most of his dvds just would like to see your actual real routine….By the way hows the welding coming along??

  7. @Dj, yes! This was actually supposed to be done last week, but like usual other commitments got in the way.

    I’ll get it done this week!

    Welding is coming along great, not many projects over the summer but I’m finishing up a weight rack right now and I start a class dedicated to just MIG in October!

  8. You hit the nail on the head. Find what routine works for you and get it set in stone, cause if you do not you’ll end up being disorganized and a disorganized trader is a losing trader over time. just like in life a disorganized person is always attempting to get something done and never does just spins their wheels over and over again where as organized people accomplish the task they lay out for themselves. pretty damn simple.

  9. SWEET!!! definately wana see your routine…like to see what im missing ….mig is fed by machine pretty cool ,the nicest welding artform is in TIG,,,,,.ive seen some of my local 777 brothers make it look like snake skin,fk wit the heat makem look like gold,blue haze,bronze,very beautiful work….

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