This chapter begins with the normal legalese type stuff but then quickly gets into the philosophy behind this course. In essence Tim is trying to boil down everything from his past 15 years of trading into one single presentation. Sykes pretty quickly goes into the idea behind calling this DVD “How to Make Millions”, the concept is if you can get to the point where you consistently can make profits of $1-2K per trade and minimize your losses in trades that don’t work you can “in theory” make a million dollars trading. (1000*$1000 net = $1,000,000).
There is also some time spent laying out the outline of the course. While not exactly educational it is useful for the viewer to know what is coming ahead. The majority of the course is Tim giving a presentation via powerpoint slide deck, but there are also numerous webinars and presentations from other successful traders. (LX21, Tim Gritannti, Mark Croock etc.).
Next segment focuses on hard work and being a professional. I think this part of Tim’s trading is very often overlooked by people who do not dig deeper into what he is trying to accomplish. They see all the silly Instagram posts with piles of cash and ugly orange Lamborghini’s and think he is just preaching a get rich quick scheme. On the contrary he spends probably 45 minutes detailing how difficult it is to make it in trading and how hard you will have to work AND persevere. You will be forced to endure losses upon losses and pain before you can become consistent. And because of that you need to show up everyday with a professional attitude and a plan for every trade. To be honest, I have not heard Sykes preach about having a trade plan that much up until this point. Something that has made a huge difference in my own trading is writing out and sticking to an actual plan. This is gone into detail in this chapter.
Middle third of the chapter goes into some of Tim’s background. For sure interesting especially if you have never heard it. He covers how he got started and some of his biggest losses and gains. He explains how his Hedge Fund career was ended by trying to be an “investor” and how this taught him that trading was so much more reliable than trying to make long term fundamental investments.
After that the last third of the chapter wraps up with laying the groundwork of learning trading by going over terms and definitions. I think Sykes did a very solid job here. While I can’t say I learned that much because of my experience. I still enjoyed the presentation and was interested. Even though I knew the different types of Orders, Exchanges, Trading Instruments and other market terms I never at any point “zoned out”. I was fully engaged and enjoyed the review of these terms.
In summary this is a GREAT chapter for beginners. The knowledge edited down in this chapter is nothing proprietary and sure it could all be found by Googling .But I really think you would spend hours upon hours digging around the internet and still not have everything laid out in a logical manner with commentary by an experienced market participant. The time savings alone in this chapter are probably worth a considerable portion of the purchase price. Not sure how valuable your time is, but even if you think its only worth $10 an hour it would not take long to put in 20-30 hours stumbling around the internet to find the content contained in just this first chapter.
Rating: 4 out of 5 (VERY valuable for beginners, less so for more advanced, but still engaging)
Self taught, learn from Tim’s mistakes vs learning on your own
Sales/Profits of this DVD go to charity
Becoming a millionaire is possible from trading, though far from easy
-Unlimited potential in trading, but it is NOT easy
15 years of Tim’s experience in this DVD, good and bad
Presentations from other successful traders
Need to constantly adapt
Learn how to scale and make trading a constant revenue stream
-“Hard work and patience/practice overcome talent”
Need a hardcore work ethic.
Learn from successful traders that have already made the mistakes. Minimize yours.
Trading is a process.
-“Many say they want to be millionaires but they give up along the way.”
Pick a symbol of your success – goal board
Money doesn’t create happiness, but it can facilitate happiness.
-“Truly great success involves failure, mistakes and stress”
Lots of goals discussion/motivation
Always more trades/plays, need to learn how to recognize and capitalize on them.
Need dedication and work ethic to learn and scan/study for HOURS a day.
“Experts see things newbies and unsuccesful traders don’t”
Keep an open mind about the possibilities of trading/pennystocks
“Most traders fail because they are on the “no plan plan” random trading/boredom trading”
80-90% of traders lose and 96% of pro’s fail to beat the indexes
Use trading to be self suffieceint
“Screw traditional investing, you might be rich by the time you are Warren Buffetts age then you can purchase the best hip surgery money can buy.”
Companies and stocks are not investments, they are trading vehicles.
Penny stocking is only good for 100’s of thousands a year max, so its ignored by mainstream. but it is constantly repeatable.
“This DVD is NOT called “How to make Billions” Pennystocking has scalability issues, but can still provide a killer lifestyle.
System is solid for growing small accounts, not for hedge funds but great for average joes.
Use DVD as “drivers education in the market”
-You will never be right on every trade, actually a low percentage.
-need confidence and belief
-trading is a journey
-Mistakes are part of trading – again its a process
Bio On Tim
Introduction of Tim G and Michael Goode
Strategy is good for $1K to $2K but repeatable over and over.
Cut losses quickly, when you are only taking 1-2K per trade you CANNOT let losses run.
Get used to taking $50-$100 or max $500 losses, but keep them manageable and small.
First reference to “the castrated choir boy”
If you keep losses small you can scale quickly.
As a penny stocker you are a stealthily sniper and can work around big traders.
Focus on 0-3 positions max
Having no position is fine
Losses are fine, but unless its a “Black Swan” losses need to be kept small.
Gonna be tough in the beginning but need to perservere
Keep notes/review EVERY trade. One to two paragraphs per trade, don’t be lazy and log it.
Trading is a business NOT gambling
“Losses are painful, but fight the temptation to forget them and sweep then under the rug.”
“Losses are part of market tuition, you want to pay as little as possible but its part of the game”
“Best advice I ever received”
-You have not been scared yet/taken big losses.
Story of hedge fund “failure” because of trying to “invest”
Audit of past results – proof
Discussion of scalping
Trading performance 1st quarter 2014 – audited
Breakdown of past performance on Profit.ly stats
Beauty of pennystocking is repeatable big percentage gains.
Double back to history/backstory of Tim
High school computer lab
Basic order terms and positions types, introduction to short selling
Pre and AH trading
More term definitions
Types of stocks – market cap size etc.
-Breakdown of what determines market capitalization size.
More advanced – useful terms
-No edge as an average Joe
-NYSE/AMEX – usually big but boring
-Nasdaq – “Usually the best for penny stocking”
-OTC – Used to be better but not as active these days
-Pink Sheets –