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Trading Lessons

3 Things I Learned From This 8-Figure Traders Watchlist

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Written by Timothy Sykes
Updated 8/10/2023 5 min read

There are so many charlatans online boasting big trading profits…

But how many can prove their claims?

I’ve grossed $7.4 million in trading profits…but the real pride?

Having students who have gone to do bigger and better things.

One standout is Jack Kellogg.

From valet to 8-figure trader in just a few years, he’s a testament to what’s possible when you work hard and don’t give up.

What’s Jack’s secret sauce?

The way he views the market is completely different from the majority of traders who lose money.

In fact, after sharing his recent watchlist I discovered three things that could help you level up.

 

#1 Having A Holistic Approach

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What’s more important, fundamentals or technical analysis?

There’s no right answer.

In fact, the more informed you are…the better trading decisions you’ll make.

For example, Jack doesn’t solely focus on what the charts are telling him. He also considers the news and catalysts.

For example, one name which was on his watchlist was the ticker symbol YELL, he noted how was following the bankruptcy news.

He also tries to get a feel for the overall sentiment. Like when one of his buddies told him that he was coming out of small-cap retirement to trade YELL.

In addition, he’s taking into account what short-sellers and pumpers are doing.

You see, so many newbies get sucked into the fundamentals or technicals they fail to look into the finer details.

#2 Risk Management

students kyle mari and jack
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Jack constantly mentions risk vs. reward when analyzing a setup. Before he considers jumping into a trade he knows the levels he’s interested in getting involved and how much he’s willing to risk.

Most newbie traders are focused on profits. And how much they plan to make.

Jack looks at his risk first. And makes decisions based on risk vs. reward.

More Breaking News

Even though Jack is an elite trader, he is always aware of and planning for potential downsides.

#3 Adaptability

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Just because a stock is placed on a watchlist doesn’t mean it’s going to be traded.

Jack isn’t fixed on a single strategy or thought process.

For example, he had the ticker symbol TUP on his list…he acknowledged it would have been a good stock trade, its current pattern didn’t fit his trading style.

In other words, Jack is also considering his strengths and weaknesses. And understands that drifting from his style can lead to subpar results.

Lessons For Newbies

jack kellogg and sykes in italy
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Wait For Clear Indicators

Jack doesn’t rush into trades. He waits for clear signals. He’s paying close attention to support and resistance levels, as well as volume. He wants the risk vs. reward to be in his favor before placing his trades.

Not only is he effective, but he’s also patient.

You Need To Be Aware Of News and Catalysts

If a stock is up 50,100, or even 200% intraday you better believe there’s a catalyst at work.

It could be rumors, chat room pumps, press releases, promoter campaigns…you name it.

If you’re going to be playing these fast moving stocks then you must keep up with the market news.

The best way I know how to do that is with StocksToTrade Breaking News.

Prioritize Risk Management

Never enter a trade without understanding the potential downsides.

Always have an exit strategy in case things don’t go as planned.

My number one rule to this day is to cut losses quickly.

Are You Next?

jack kellogg and tim sykes
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Dedication and perseverance is key if you want to achieve long term success. Jack didn’t make money right away. In fact, he struggled his first year.

But he believed in the process and stayed committed.

Want a piece of the action?

Everyday we host live training sessions detailing market trends and the strategies we see working.

Ready to dive in?

REGISTER HERE. 


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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”