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Trading Tips-Tim Sykes Penny Stock

7 Crucial Tips For New Traders

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Written by Timothy Sykes
Updated 2/2/2021 7 min read

I am a self-taught trader and that SUCKED! Doing it all by myself, I was forced to learn a lot the hard way and through trial and error along the way and this is, in part, what inspired me to create the Tim Sykes Millionaire Challenge to be the mentor to people that I never had. I wish I knew the crucial steps to success, like I’ll provide for you below.

I didn’t have a mentor or a program like mine.  But, in retrospect, I wish I had. I probably would have made money far quicker and not made so many bone-headed mistakes if I had.

But lamenting the past won’t change anything. Instead of complaining, I want to help you so that you don’t have to make the same mistakes I did! In addition to offering my Trading Challenge, here are seven pieces of advice that I’d like to offer new traders who are where I used to be.

1. Seek out an education. The idea of just jumping in and starting to trade penny stocks might be tempting. You’ll figure it out as you go, right? Not so fast.

I’m all for going for it, but take a step back before you do anything hasty. Remember, this is your money, and you don’t want to lose it. Before you trade, it’s smart to learn a bit about the process and theory behind trading so that you don’t lose your money in ways that could easily be avoided.

The Challenge was created for this exact reason. It is designed to educate the Tim Sykes Millionaire Challenge team on trading in an applicable, real-life way. We progress into real advice and methods that you can put to work. I don’t want you to wait years and years to make your first trade, but I do want you to have an idea of what you’re doing before you dive in.

2. Have a willingness to learn. It’s best that you learn this early on in your career: as a trader, the need to keep learning will never end. Seeking out an education, as discussed in the previous point, is partially so that you can make educated trades. But it’s only the tip of the iceberg.

But if you really want to be a longtime, successful trader, you’ll need to have a will and a desire to learn. This is something that you basically want to turn on and never turn off. Keep reading, learning about the philosophies and methods behind successful traders, and stay interested in the world, both in terms of business and at large.

3. Know what you’re working toward. If you’re not working toward something as a trader, then your career will have little direction. So what are you working toward with your trading? What are your goals?

When you’re new as a trader, you should have strong clarity on what it is that drew you to trading. Money, obviously. But, money for what? A better quality of life? Really dig deep and figure out exactly what it is that you want to buy with all that money you’ll make. Tattoo that desire in your brain and think of it with every trade you make. It will help you stay motivated, which makes you a better trader. Having goals to stay committed to will keep you going when things get tough.

4. Recognize your strengths and weaknesses. It’s important to be able to identify your strengths and weaknesses early on as a trader. Basically, the sooner you identify them, the sooner you can streamline your trading. By recognizing your strengths, you can play to them, and adjust your study and trading schedule to suit what works best for you…every trade and student is different as we all have different personalities so it’s important to recognize this and adapt to whatever works best FOR YOU!

By recognizing your weaknesses, you can either work around them, or make a decision to become stronger in those areas. This might involve studying harder in certain areas, or taking the steps to remove bad habits from your daily repertoire and replace them with good habits.

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5. Let yourself improve over time. Patience is a virtue when it comes to trading. Don’t expect miracles (or millions) in your first week. It doesn’t have to take an incredible amount of time to start earning money, but don’t rush it. Let yourself discover what works and what doesn’t, and get your footing as a trader…read this blog post if you want to learn more about patience and perseverance.

Slow but steady wins the race when it comes to developing skills as a trader. Don’t try to jump ahead, because there’s so much that you can learn along the way that can help you later. Giving yourself the room to learn and improve over time will take a way a huge stressor from your trading career, and it will also make the journey more enjoyable.

6. Network, network, network. Creating a network is important for any entrepreneur, and traders are no different. Come to this meetup in a few months and meet all my top trading challenge students and I and trade live with us too! Making friends with other new traders can create a positive support network and help you stay inspired. Making friends with traders who are further along in their career than you can give you insight and allow you to emulate their success (without copying).

A mentor, too, should be part of your network; this is a trader who is further along in their career than you who takes it one level further and acts as your adviser. Meeting with a mentor on occasion can inform your career, give you ideas, and help you know what career pitfalls to avoid.

Moreover, creating a strong network is a great thing for new traders, as you never know what opportunities your connections might afford you in the future.

7. Learn to love trading. If you walk away with nothing else from this article, take this advice to heart. If you learn to love trading, then you’ll be doing yourself a great service as a trader…the process and the journey is actually even more enjoyable than the rewards…the rewards are nice, don’t get me wrong, but learning to be self-sufficient is priceless as even if I lost all my money tomorrow, I know EXACTLY what I must to do get it back so I’ll NEVER be down for very long, no matter what happens.

And remember, too many people suck at their jobs and don’t excel because they don’t truly enjoy it…doing things that you hate is no fun. It makes the time crawl by, and it does nothing to improve your quality of life so don’t make that your future.

However, doing things you love makes time fly by (in a good way) and makes you feel vital and excited about your day, and about life in general.

If trading can become one of those things that you love, then your career will seem effortless and success will come to you far more quickly and more naturally.

These seven pieces of advice are vital for new traders. I wish that I’d had them when I was a new trader! So go forth and don’t make the same mistakes I did.

Please leave a comment below with which of these points make the most sense to you, #1-7, you tell me! 


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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”