Wisdom From 28 Years of Trading

I’ve been trading now for 28 years and teaching for 20. That’s crazy.

In that time, I’ve watched thousands of traders try to make millions and fail.

I’ve also helped more than 50 people become millionaires from scratch.*

What did I learn in all this time?

It’s not the setups, indicators or risk-to-reward ratios that determine who wins and who fails.

And it doesn’t matter your background or how smart you are. It’s not even about how hard you work.

Everyone who makes it develops a specific mindset. It’s like they become a certain kind of person in the process…

28 Years of Wisdom In 47 Minutes

I recently made this video trying to capture the most important lessons I’ve learned, both as a trader and teacher, in 28 years.

28 Lessons From 28 Years of Trading

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Get a notebook and pen and take notes. …

Wisdom That Can Change Your Life

Here are some of the key ideas I covered in the video…

Ego Is Your Number One Enemy

The market doesn’t care how smart you are or how much you studied. The moment you think you’ve got it all figured out is when the market teaches you an expensive lesson.

I know you’ve heard this before but it’s easy to forget. Overconfidence builds up over time (especially during winning streaks). The market does NOT care about your win streak.

Cowardly Trading Is Better Than Aggressive Trading

Nobody wants to be a coward, right? But taking big positions and using leverage because you have high conviction is dangerous.

Sadly, in this industry full of fakes and scammers you see traders post big wins on social media. But you don’t hear about their massive losses, right?

That’s actually the opposite of what success looks like in trading.

Never Put Yourself in a Position to Get Annihilated

You can still make millions without risking blow up. Never put yourself in a position to blow up your account on any one trade.

The traders who blow up are almost always sizing up before they’re ready, so…

Start Small and Size Up Later

Traders who truly make it, start small (or even paper trade in the beginning). When they size up, they do it reluctantly.

Wait until you feel guilty for not sizing up but you’re still scared to do it. If it feels like you’re leaving money on the table, that’s okay. You’re learning how to protect your account.

Master One Or Two Patterns

One or two setups that you understand completely is WAY better than six or seven that you “kind of” understand.

Every one of my millionaire students mastered only one or two patterns at first.

Think about it…

If you get very good at one pattern, you know it inside and out. You know your data. THAT is when you get consistency. It becomes your bread and butter setup. Then you can work on another pattern.

Focus on Your Education Before Profits

I’ve never seen anybody who focuses on money at first make millions of dollars.

If you get lucky with the right pattern or the right market and you make a lot of money without the proper foundation, you’re going to lose it.

A fool and his money are soon parted. That applies to everybody.

Stop Asking “What Stock Should I Buy?”

This is the #1 WORST question new traders ask. It’s the worst question ANY trader can ask.

All my millionaire students came asking the right questions because they focused on education instead of hot picks.

Keep asking questions, but try to ask better questions (then go away and apply what you learn).

For example, over the last 2 years I developed and fine-tuned probably the most explosive trading strategy of my 28-year career.

That happened because I kept asking questions when I saw something happen again and again.

The crazy thing is it happens during the exact same 15-minute window every day the market is open.

Here’s another piece of wisdom I wish someone had told me in the beginning…

Journal Everything

Keep a detailed trading journal and track every trade. Gather as much data as possible. And it’s more than just wins and losses.

• Did you get a good entry?
• Did you sell too soon or too late?
• Did you trade when it didn’t fit your schedule?
• Did you follow your trade plan?
• Did you even have a trade plan?

Be brutally honest (it will pay off later).

Full transparency: I didn’t journal early on and I left millions on the table because of it.

The traders who improve fastest can look at their own data in a very honest way and say, “I was wrong.”

Be a Lifelong Student

When it comes to learning, we live in the most fascinating time in human history. Information is everywhere and easily accessible.

Are you willing to spend your time wisely enough to utilize all this information?

When I started, it was pathetic. I didn’t have access to even 10% of what you have at the click of a mouse.

That said, having access to too much information without knowing what to focus on just creates confusion.

Be a Discerning Student

The traders who make it focus on the right information. You can go on social media and consume hours worth of utter nonsense about trading.

Or get taken to the cleaner by furus who front run their followers.

You can also watch the right videos and own the right courses but not do anything with what you learn.

So, apply what you learn. Test, tweak, and refine until you know what works for you.

Process Before Profit Without Exception

I know you want to become my next millionaire student.

Remember, it’s not about chasing money.

Build your foundation and your knowledge account first. Money comes later (over time).

The traders who scale successfully do the exact same trades with more capital. It’s the same entries, exits, and risk management. Obviously, there are nuances (it’s not a perfect science).

Traders who fail:

• Scale far too fast
• Trade with their emotions all over the place
• Trade with big money
• Don’t truly understand the setup
• Hold losers too long (because the dollar amount feels too big)
• Size up on conviction instead of consistency

Guess what? The market will punish you for that.

Key Takeaway

It all comes down to education and we’re all human, right?

I’m sure some AI is reading this and taking notes. Whatever.

Assuming you are human, you have to learn to control your emotions.

You have to become a student of the game and gather a TON of data.

And you have to focus on process over profit.

How do you become my next millionaire student? By becoming my most dedicated student.

Have a great day and come ready when the market opens tomorrow.

Cheers,

– Tim Sykes