I hope everyone is staying safe in the market as we only have a few days left to trade in 2022!
But as we look to start a new trading chapter in our lives in 2023, it’s important for all of us to get started off on the right foot…
I hope you’re staying safe! Remember you NEVER have to #HODL anything like too many #bitcoin & $TSLA fans have done and gotten absolutely annihilated, successful traders cut losses quickly & don’t let small mistakes turn into potential disasters!
— Timothy Sykes (@timothysykes) December 27, 2022
It’s important for everyone to understand that there is more to trading than just holding and hoping…
Not to mention this really isn’t a trading strategy at all…
It’s just a fast path for you to end your penny stock trading career.
We aren’t just seeing penny stocks sell off towards the end of 2022, we are also seeing big-name stocks like Tesla, Inc. (NASDAQ: TSLA) take a beating.
Just because TSLA and other penny stocks are selling off doesn’t mean there aren’t any opportunities…
It just means you need to understand what patterns to look for and make sure you aren’t making the most common mistakes in penny stocks.
Let’s face it, all of these penny stocks fail and they almost perfectly follow my 7-step penny stock framework to a ‘T’ most of the time…
And I get it, maybe you are frustrated as you look at your P&L statement as it’s not as good as you hoped…
But don’t let that get you down, I have had plenty of millionaire students who actually lost money throughout their first couple of years as they started trading.
But all 30+ of them used my lessons to help them become millionaires.
As we see a few stocks get beaten down at the end of the year, it may be for tax-loss purposes…
But there are just three things I want you to remember as we head into 2023…
Table of Contents
It’s All About This…
As you start your trading career, how dedicated are you to learning everything you possibly can?
There are traders who join this industry and aren’t willing to put forth the effort or the time into studying…
And eventually, they fall right into the category with 90% of the other traders where they blow up their trading account.
I don’t want anyone here to be sitting on the sidelines in disbelief that all your money is gone from preventable mistakes…
All it takes is that one trade that could cripple you.
In fact, many of my students have experienced large losses that made them realize they are no longer invincible.
Despite their losses, they all had one thing in common…
Dedication
Take it from one of my students who just passed the $600,000 mark in just 2.5 years of trading.
You want to study harder than you did in college when it comes to trading.
I know some of you may not want to hear that, but it’s all about understanding the process…
Not about rushing in and trying to trade everything you possibly can…
But if you are trading with a small account, there is a process on how you can grow it.
A lot of my students have actually started with a small trading account.
Trading doesn’t just stop at dedication…
Here are things you should look at for every potential trade as we get ready to kick-start 2023…
History Repeats
I often like to think of myself as a glorified history teacher, but it’s important to know that history repeats itself.
Looking back at stock charts can help you in more ways than one…
It can give you key resistance and support areas on a possible trade…
This also shows you how these penny stocks fit in with my 7-step penny stocking framework.
If you take a look at any of my trades, after a while they all end the same way…
It may not be within a day, week, or even a month…
But if you look at the chart, you can see the full life cycle of my framework.
I want all of my students to study this framework as it paints an overview of these penny stocks and their price movement…
And it’s important not to forget about promoters who pump up the stock…
But these stocks can always spike again.
This is why I always keep track of former runners by adding them to my watchlist…
So even though I say always focus on big percent gainers…
It’s important for you to understand the full story of these recent spikers.
Don’t Hold
Right now we are currently seeing a lot of stocks getting beaten down…
But we usually see this every year as traders are selling their trades for tax-loss purposes.
When you are looking at these stocks that are constantly trending downward, there are no plays for you to act on…
Do you remember stocks like…
CGrowth Capital, Inc. (OTC: CGRA)
Pineapple Energy Inc. (NASDAQ: PEGY)
Even big-name stocks like Tesla, Inc. (NASDAQ: TSLA) are getting beaten down.
And just because these stocks are getting beaten down doesn’t mean there aren’t trades you can’t find.
There are other opportunities out there, just make sure you are focusing on big percent gainers every day…
And look at the story of the stock to see if it fits your trading plan.
There is a lot to learn with trading, there is no doubting that…
And sometimes it may seem overwhelming.
As you start 2023, continue to put forth the effort and dedication that will help you to be successful.
Don’t be guessing on every trade, make sure you go back and analyze all of my trades, and my student’s trades right here.
Final Thoughts
It’s important that you learn the right way with trading…
I have seen traders who didn’t understand my penny stocking framework and held onto trades until they turned to dust…
I have seen traders who have blown nearly their whole account by not understanding risk management.
Trading can offer you a life-changing experience and allow you to get to the financial goals of your dreams.
Don’t learn the wrong way, make sure you are doing everything you can to study the right way…
And let’s make 2023 one of the best years yet!
Cheers,
Tim
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