Today’s blog post is all about Answering Top 10 FAQs in 2020! Thank you everyone who continuously message me with questions. Not only do these Q&As help you, but they also help me by solidifying what I am learning. So today I figured I would dedicate a post to the top 10 most common questions I constantly get asked by a majority of traders. Don’t let this discourage you by any means, find this as encouragement to ask more questions because I LOVE answering them!
Let’s Get Started!
What Broker Do I Use?
I use E*Trade. This is my broker because I wondered this same exact thing when I was first beginning. So how did I decide to go with E*Trade out of all of the brokers out there? Well, I read this blog by my teacher, Timothy Sykes, who talks about the brokers he uses and why they are the least terrible of all the others. Now, I do have $100 with TD Ameritrade as I wanted to check out the ThinkOrSwim platform since Tim Grittani uses their charting software from what I have seen in webinars. To make it clear, I do not execute trades through TD Ameritrade at the time of writing.
What Trading Platform are You Using?
E*Trade Pro and StocksToTrade. Currently I just have E*Trade Pro until I renew my subscription to StocksToTrade. But normally I have E*Trade Pro on one laptop while I have StocksToTrade on my other one. Now I have heard that E*Trade is discouraging traders from downloading that platform and instead they would rather have traders use their new web based platform called Power E*Trade. For further questions regarding differences between Pro and Power E*Trade call their customer support or checkout their website. The reason I chose E*Trade Pro is due to the numerous video lessons I have watched from my teacher that I feel most comfortable with that charting software and it helped make him millions. One thing I think about is if it helped these traders become top traders then I should do what they do so I won’t question their process. That is also why I use StocksToTrade. My goal in trading is to have the BEST advantage possible which means the BEST tools available!
Is StocksToTrade a Broker?
No StocksToTrade is not a broker but they do have a feature that allows you to integrate your broker so you can make trades using the StocksToTrade software. StocksToTrade is specifically designed by Tim Sykes and his team to scan for stocks. I have not found any other scanner that works as beautifully as StocksToTrade, ESPECIALLY for low priced stocks! This software is built from scratch and is constantly being updated with the best edge so you can find the next hot stocks!
How Do You Find Your Stocks To Trade?
StocksToTrade is my GO-TO for finding the best real-time stocks to trade! Click HERE to find out how I scan for the HOTTEST OTCs. Also, thanks to StocksToTrade you can learn how I find breakouts like $TRIL back when it first began its HUGE run! Nothing beats the amazingness of StocksToTrade!
Watch the video below to see how I use StocksToTrade to create an efficient watchlist!
Below is a video of how I currently use Free resources such as FINVIZ to find stocks while I move my focus primarily to studying.
Which Tim Sykes Program should I purchase/Is Tim’s Trading Challenge “Worth It”?
That is totally up to you. If you have to ask yourself if investing in your education is “worth it” then you are already selling yourself short and need to change your mind set. My goal from the beginning of my trading journey was to become a Challenge Student which I now am. Whenever I get asked this question I encourage traders to research what it is they are wanting to improve.
Are you wanting hot stock picks to learn from? If so, Tim Alerts is a wonderful resource for traders to focus on the stocks Tim is trading in real-time, learn his entries/exits, and the reasoning for him to enter the stocks and exit.
Next Is PennyStocking Silver – this program gives access to Tims 6k+ video lessons amongst other goodies! Don’t worry, I have completed every video lesson and I am so grateful from the wealth of knowledge I have been learning!
Trading Challenge – Whenever someone asks me about joining the trading challenge I always suggest that they apply, setup an interview, and during that interview it doesn’t hurt to request an email with everything available when joining. This was the best decision I could have made and I am beyond grateful for being accepted! Anyways, it depends on your determination and how hard you are willing to work. You can be lazy studying from the other programs, but your ass better be ready to put in the hard work that is necessary if you want any shot of joining this challenge!
Should I Paper Trade or Begin Trading With Real Money?
This is totally up to you. My journey began with the purchasing of StocksToTrade so I could learn by using the paper trading feature. Paper trading gave me the tools to prepare me for the emotions, speed, charts, setups, and much much more that I would be using going live. My paper trading journey lasted a little over 6 months. Some traders disagree with the use of paper trading because you don’t have real money on the line. They believe that it is lacking in education because you don’t feel the real emotions of losing real money. I disagree with that since I found that paper trading gave me the same emotions because of how I valued the paper money/my education and it gave me the guidance on how to handle real money.
The only downside with paper trading is that you are most likely guaranteed a fill in your order vs using a live account where you can miss trades if you are too slow. Also, you don’t have the consequences of using all the buying power in your paper account or having to give your broker permission to let you trade premarket or after hours. So it is lacking in some aspects but it serves its greater purpose for mimicking live trading and preparing the trader for battle.
I Am Not Located in The United States, What Broker is Best?
Personally, I have no idea. The best advice I can give is to read Tim Sykes Blog post about brokers and see if this helps you.
How Much Money Should I Begin Trading With?
This is a question only you can answer. How much are you willing to lose? How much money can you afford to lose? Never take out a loan to trade and never trade with the money you need to survive such a bill/food money. I began with $3,000 and lost a couple hundred of it as I focus on staying disciplined and waiting for only the best setups to grow my accounts. I encourage beginning with a small account that way you can’t purchase a ton of shares and your must learn the right setups with small share size so your losses are minimal.
Which leads me to – Rule #1 in trading stocks is CUTTING LOSSES QUICKLY! You’ll thank me later!
What are Your Favorite Patterns to Trade?
As of right now I trade Long setups. This means I buy stocks instead of short selling/betting against stocks. Focus on the setup and mastering the pattern so you increase your odds of the money flowing into your account. But you MUST invest in your knowledge account first!
What Do You Use to Track Your Trades?
I use TraderSync which is my personal online trading journal and I use Profit.ly which is another online trading journal but is is posted publicly for the world to see! My belief is in FULL transparency and documenting my journey so I can learn from my trades and grow as a trader. Do yourself a favor and use the proper resources to track your trades. This is important for EVERY trader and is a MUST! Do no slack and do not be lazy when it comes to tracking your personal performance!
Extra Question #11
What Books Do I Recommend?
- The Complete Penny Stock Course By Jamil Alluch
This Book is written by one of Timothy Sykes students who is the engineer behind StocksToTrade who decided Tim’s lessons needed to be organized into a book format which has become required reading when studying as a Timothy Sykes Student.
- An American Hedge Fund by Timothy Sykes
This book was written by Timothy Sykes who turned roughly $12k into $2 million by the time he was in college. He wrote about his journey to the millionaire mark and how his experiences led him to develop the solid trading rules he now instills in his students heads such as Rule #1 Cut Losses Quickly.
- Extraordinary Popular Delusions and The Madness of Crowds By Charles Mackay
Want to know the history of human behavior, then read this book to see how trading became a thing and how the behavior of the common trader hasn’t changed. Not sure if this is a true story or not since I have never looked into it but it’s a must read!
- Reminiscences of a Stock Operator by Edwin Lefevre
What an incredible book written about the famous Jesse Livermore and how he became an amazing trader! Must Read!
- How to Trade in Stocks by Jesse Livermore
One of the first books that talk about trading stocks without any BS. Written by an amazing trader. Such an honor to be able to read from the man himself who influenced many traders in this industry.
- Japanese Candlestick Charting Techniques by Steve Nison
You are probably new to trading and just heard about candlestick charting but don’t know where to start? This is a fantastic book that can teach you techniques to reading these crazy charts and what indicators can potentially lead to the next event.
- Trading in the Zone by Mark Douglas
Reading this book really helped me to hunker down and focus on myself while trading. Great psychology tips and tricks to mastering yourself and focusing on your strategy!
How Much Do I Need To Study To Get Rich?
Studying never ends! The more you study the better you increase your odds of success. That is why 90% of traders lose due to their lack of preparation and lack of dedication to studying. Your opponents are lazy! Be prepared as this is a battlefield and success is not guaranteed! They say that it takes 10,000 hours to become an expert. How bad do you want to make your dreams come true? Will you dedicate 10,000 hours to potentially become a consistently profitable trader?
and for an added bonus bonus….
Watch videos 1, 2, 3, and 4 from Mark Douglas, the author of, Trading in the Zone and learn How to Think Like a Professional Trader.
Bonus.. Bonus… Bonus.. Bonus..