timothy sykes logo

Trading Lessons

How To Turn Your Trading Around

Timothy SykesAvatar
Written by Timothy Sykes
Reviewed by Jack Kellogg Fact-checked by Ellis Hobbs
Updated 1/10/2025 4 min read

Everyone’s been there …

Even the best traders go through periods of undisciplined trading.

For example, I had a rough December. I recorded a net loss for the month, -$2,914. I even lost $25k on a single trade. 😩

I cover that trade in the video below:

Even Jack Kellogg had to reevaluate his process. In late 2023 he was on an ugly losing streak.

Take a look at his profit chart below:

Source: Profit.ly

But we didn’t give up!

That’s key: Don’t let it frustrate you to the point of quitting.

There is a process for profits in the market.

Jack and I both went through periods of losses. But we rededicated to the process and we got back on track … 

Here’s how:

How We Turned It Around

Already in January I’m killing it!

Take a look at one of my trades from last week:

Source: Profit.ly

My $25k loss in December shook me up a bit … I had to take a step back and reevaluate my trading.

The market’s recent strength had me up at all hours and it started to take a toll on my health.

As a result, I was trading sloppily …

My main issues were overtrading and not cutting my losses quickly enough. I saw these stocks spiking +1,000% and I pushed myself too hard in my pursuit of profits.

The same thing happened to Jack. But his major issue was trading with too much size … He started thinking about the money too much and it shook him out of his disciplined process.

Jack still trades with a larger size than most of my students … There a recent example below:

Source: Profit.ly

Believe it or not, this can be a conservative position size for Jack. 😆

Jack had to size down to focus on the percent gain instead of the dollar gain.

Quality of trade over quantity of money … 

In turn, I had to focus on my health and zone in on the best setups.

How To Trade These Stocks

When we have big stock spikes, it pays to aim small.

Aim small, miss small.

I know that it’s tempting to aim big on a stock that spikes +400% (like CURR from last week). But remember, we often find these stocks before they reach the peak.

Which means that sometimes we’re trading a stock that’s already up 200% on the day, and we have no way of knowing how far it will spike.

It’s a dangerous situation for those who trade without a plan.

Don’t let that scare you away, there’s A LOT of opportunity right now …

For example, from last week:

  • DatChat Inc. (NASDAQ: DATS) spiked 370%*.
  • Currenc Group Inc. (NASDAQ: CURR) spiked 400%*.
  • VerifyMe Inc. (NASDAQ: VRME) spiked 120%*.

But understand the risks of trading without a plan.

>> Learn My Process To Trade These Huge Stock Spikes <<

Get ready for more volatility this week …

Cheers.

 

 

*Past performance does not indicate future results


How much has this post helped you?



Leave a reply

* 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”