As we prepare to kick start the 2023 trading season tomorrow, I hope all of you are more prepared than ever!
Trading is all about preparation, so I hope all of you have a watchlist on what stocks to look at when the market opens tomorrow…
But also be sure to see what I am talking about and trading as we kick off this new year.
It doesn’t matter if you are starting this year with a small account, or a large account…
It’s all about understanding the process, and not holding and hoping that a stock will go up.
Realize that 2023 is going to be the BEST year for trades, but you need to actually stick around and have capital to put to work so don't go down with the ship on $TSLA $AMC $GME $MMTLP $COSM $BTC or anything with too many promoters & #HODLing groupthink, that's how you lose big!
— Timothy Sykes (@timothysykes) December 22, 2022
That is how you will lose big, and we have seen that with certain stocks as we closed out 2022.
So before we kick off 2023, let’s make sure we get back to the basics…
And that all of you are familiar with these steps.
Table of Contents
Risk Management
A lot of traders who start trading don’t always think about their position size and how it could impact them in the long run…
In fact, I can remember sitting down and talking with one of my millionaire students, Jack Schwarze, and how he nearly blew up his trading account just based on one trade.
Trading is all about position sizing, not focusing on your P&L statement.
A lot of traders get caught up in how much money they are making they completely ignore the risks of any trade they make.
Any trade can completely do the opposite of what you anticipated, that is why you should always follow my #1 rule.
With every trade I make, I take a small portion of my account and have a goal in mind.
As we start 2023, every trader should make sure they have an anticipated goal in mind before every trade they make.
This is all part of the planning process, don’t go into a trade not having an exit point or any type of strategy as the stocks can move quickly.
I am more of a conservative trader so I like to take quick profits and not hold as these stocks can turn on a dime.
So if you are starting with a small account, that is perfectly ok!
Most of my students start with a small trading account, and in fact, Marina studied for a year before she became a millionaire by the age of 20!
It’s not about the size of the trading account you have, that will add up over time…
It’s all about understanding the process and here is what you need to know.
Framework
I cannot encourage everyone reading this today the importance of the 7-step penny stock framework.
At times I feel like a broken record, but it’s incredibly important that you recognize how these stocks fit in with this framework.
THIS PATTERN is what every trader needs to master to get started.
Every day when you look for big percent gainers, you want to look to see what the big picture is.
Is this stock starting to move from higher volume based on a promoter’s pump…
Could it be from a recent event…
Whatever the reason may be, this is where you will start to help you find trading opportunities.
Once you find the starting point and look at the big picture, it can help you determine what your next move will be.
One of my favorite patterns to trade is a dip-buy, so when these stocks start to trend upwards after the first green day…
Then the second, then the third…
I wouldn’t chase it, this is where I would start watching it closely for that morning panic.
Don’t Hold And Hope
I know we have touched base on this quite a bit over the past few days, but I cannot enforce this enough…
I have seen way too many traders blow their accounts by holding and hoping that a stock will come back and it doesn’t.
You need to have capital in order to trade, and if you don’t have proper risk management, and you are holding and hoping on stock to rebound…
This is not the right place for you.
I want to teach you everything I know about trading and the process behind it, not to have you hold and hope a stock continues to move higher.
If you have any type of trading plan, it crushes the holding and hoping strategy.
Learning a basic trading plan is one of the most basic concepts every trader should learn, but a lot of traders skip this most important step.
So instead of holding and hoping that a trade is going to work out, be sure to learn the right strategy that can help you understand the penny stock process.
Final Thoughts
I want everyone here to be more prepared than ever as we start 2023.
In fact, I have helped to create over 30+ millionaire students and there is plenty more where that came from.
All of my students learn from one another, and I want you to make sure you are learning everything you possibly can in order to be successful.
Watch my films, study my trades, and make sure you are prepared to catch some of the biggest movers in 2023.
Cheers to an amazing year!
Tim
Leave a reply