Dedication, Discipline, Hard Work, and Motivation all went into my August 2020 Trading Recap! Watch the video below to hear how August turned out to be my best month yet. Now, read on and let me dive a little deeper into my psychology since I get a little distracted in the video. LOL
August 2020 Recap
Finding The Best Patterns
Several traders have asked me how I focus on only one setup and how I went about deciding which setup was right for me?
Well, if you have purchased The Complete Penny Stock Course by Tim’s student Jamil Alluch, then you have an idea of what goes into your personal schedule and how you can fit trading into your life. After many months, weeks, days, and hours of fighting the markets, I learned to adapt. Watch THIS VIDEO to hear how my son was the deciding factor that lead me to mastering Morning Panic Dip Buys and profiting for this August 2020 Trading Recap!
When joining the Trading Challenge it was clear to me that the time and effort to learn was cut out for me. Among the orientation videos to be watched when waiting for the day to have the interview was Trader Checklist Guide. Fourteen Hours of step by step explanation and visuals on how to research for the healthiest candidates that make it onto your watchlist. Checkout THIS LINK to gain access to the Sykes Sliding Scale which is a numbered system that ranks the stocks before you trade/watch them.
Having the challenge and guides like the above really helped contribute to my current success. This leads me to how I stay discipline..
Finding your own discipline comes with time… and this means trading maturity. Think of it as something new that you obsessed about SO MUCH until it became just another every day thing.. such as driving or getting dressed or even breathing. For most people these events lose their thrill after it becomes integrated into the every day “routine”. This same concept comes into play for trading.
Imagine yourself right now… you may be a new trader, perhaps you’re coming back to trading, or you might even be experienced already.. regardless of where you are at in your journey, picture doing the same routine every day.. FOREVER! It becomes just that.. a routine. You hold yourself responsible when you come to a stop light or a stop sign when driving, right? Same goes with the discipline of not chasing or cutting losses quickly when a trade isn’t following your plan.
Seem too simple?
Well… why does this have to be hard or complicated?
As Tim ALWAYS says… Trading isn’t Rocket Science.
So why pretend it is?
My life is all about simplicity! At least as much simplicity as I can make it. This is why my every day/night routine is:
- Get my kid to sleep
- Create my watchlist once he is asleep
- Post watchlist on Twitter
- Study until I pass out
- Every time I wake up – replay video lessons that I just slept through
- wake up when alarm says it’s time to trade
- open my watchlist and checkout Tim’s
- See which charts fit my Morning Panic Strategy with decent volume
- Wait until the pattern plays out
- if no pattern – study
- trade if patten is perfect
- take pictures/post of twitter and profitly
- Study until my kid is awake
- Study while my kid is awake by playing videos on YouTube/ watch webinars
That is my basic routine. Now of course there are variations in between but that is the gist of what goes into my day.
Simple and boring. Just like I like my patterns! As I am a creature of habit, so are the patterns I trade. Gambling isn’t my forte so why would I try and gamble at trading? My math may not be exact but I like odds, and the odds are in my favor with predictable patterns.
(Disclaimer: I have been studying my tail off so my results are not typical. 90-95% of traders lose or blowup their accounts consistently and 100% of traders lose money at some point when trading. Never risk more money than you are willing to lose.)
Above is the chart of my personal online trading journal TraderSync. This wonderful mobile trading journal automatically calculates my trading statistics and organizes them into a neatly organized calendar. The above image is my month of August. In the photo you can’t see the first week because I didn’t trade and my laptop screen isn’t large enough to include the 1st day. Rest assured, no trading happened on the 1st. My total profits calculated with the result of $53 profit overall for the month! This is wonderful given the growth rate.
Here are a few statistics that show my growth over the month. This means that my losses are smaller than my wins and that my wins ate is slowly increasing. Now winning over 50% of the time, my account is making back losses as my discipline increases!
Looking at the calendar chart, you see I have one red day. This does not mean that I only lost 1 day out of the month. Looking at the Overview Report, you can clearly see I lost more days than just one. But my other trades made back those losses plus some profits. The goal isn’t to never lose, the goal is to recognize I was wrong, accept that fate, and minimize the loss as much as possible so I can profit from the right stock that follows my plan.
Profits Vs Losses
Taking singles has been the key to my success this month; along with, reading Level 2 and being familiar with Timothy Sykes 7-Step Framework. You will hear many traders talking about taking singles or “The Meat of the Move,” because we are locking in profits before they turn sour due to greed. All too often you hear about traders being green on the trade but greed got the best of them so they gave back their profits and turned it into a loss.
So how can you learn to take singles and fight the greed? Here’s my trick.. In my watchlist, that I post on Twitter every night, I write out my profits goal. More times than not, I take my profits even sooner than I type out in my watchlist. That is why knowing how to Read Level 2 is SO important!
Getting into the habit of locking in singles and cutting losses is very important to my psychology and trading account! On the left side and near the bottom of the Monthly Report photo you can see how I began live trading in the red. I lost money (Listen to This to learn why). But that is a very normal thing to happen to new traders.. even veterans have had red months! Tim reminds everyone that his multimillionaire student, Tim Grittani, didn’t profit for about nine months! Everyone’s journey is different, but luckily with enough dedication and hard work, red months can turn green!
When to Size Up?
One of the sacred questions!
Position Size! Well, in my August 2020 Trading Recap, I decided to size up. Never be afraid of using small size such as one share or even five or ten shares! Many people will be tough and make fun of the sizing and try and push you into sizing up, but f*ck them. Sorry for the foul language but it’s true. This is YOUR trading journey and how comfortable you feel trading is the only thing that matters.
I find trading with small size vital to my growth/maturity as a developing new trader. There is no way one can trade with 1,000 share position size if they can’t even manage a one share size position. Mastering ones emotions is one of the most crucial tasks when learning a new strategy, becoming intimately familiar with that strategy, then sizing up once you become one with that strategy. This is how these patterns become your “Bread and Butter”.
Only YOU know when YOU should size up. For me, this is when I no longer feel that racing in my heart.. the sweating of my palms… the excitement to press the sell button after being in a stock for a couple seconds. My sizing comes from eradicating that adrenalin rush and turning it into a strategic plan.
During my growth in August, having a trading plan has been crucial to my turn around. By forming a basic strategy with a risk, buy, sell, goal, and overall plan of what I think the stock should do has made a complete difference! Not only that, but posting it on social media for everyone to see holds me super accountable to myself.
Risk management is the key to keeping those losses small! I will have to write another post just on risk management and forming a trading plan as this is such an important topic that deserves a post all by itself!
August 2020 Trading Recap
Although my profits have slowly increased from five dollars in June to fourteen dollars in July and now fifty-three dollars in August, I am beginning September with a fresh mind. The profit increase is not my goal but to maintain discipline and structure each day. Most importantly, waiting for the right setups to form and really focusing on my trading plan.