Singles Vs. Homeruns
Singles Vs. Homeruns – this is my not so secret, secret that has lead to my second green month in a row. With my results proving the validity of this thesis, it is imperative that I share the information with you!
Sounds impressive perhaps?
Well, it can be given that 90-95% of traders lose. This is caused by fear, greed, lack of discipline, lack of preparation, cockiness, and most importantly, not having the right mentor!
That information was the first in my lessons about the psychology of trading, which is also a book I need to read! Thanks to having such a compassionate, driven, and well-rounded mentor, Timothy Sykes, my trading education has been safe and steady.
Importance of a Mentor
Education is Key
Having a mentor is they key to having the right mind set for trading. But how do you know which mentor is the RIGHT mentor? Well, that’s a very important question! Timothy Sykes, my teacher, always informs new traders that they MUST request ALL trading records of the person trying to teach someone how to trade. This type of transparency is not very common in the shady trading community. By providing full disclosure to new traders, this allows the newbie to make an educated decision on who is the RIGHT mentor vs. who is the WRONG mentor. Most mentors may have alternative motives other than teaching; such as, growing their own bank accounts. This is why having the RIGHT mentor is so important!
Timothy Sykes created Profit.ly – this is a transparent trading journal that allows traders to write blogs, watchlists, record videos, track trades, view profit charts, and MUCH MUCH more. The best thing about this website, is the fact that it is ALL PUBLIC! Not only does it keep track of your journey so you can learn from it, but it’s public for anyone to review your process. This is the most transparent documentation that I am aware of. Beware of traders/furus (fake gurus)/gurus/teachers/mentors that do NOT post on this platform. They may be trying to hide information and that IS A RED FLAG!
Psychology of Trading
Why is Trading Psychology Important?
Trading psychology is one of the most important traits when it comes to taking singles vs. homeruns. How can this be? Trading is ALL psychology.
“The Markets Can Stay Irrational Longer Than You Can Stay Solvent”John Maynard Keynes – 1930’s
This quote is very popular amongst successful traders and what this basically means is that you may be right about the overall trend of the market, but off on the timing – which brings me to the next paragraph.
When you are wrong on a stock; and you will be at some point (like I said, 90-95% of traders lose), it is crucial for you to follow Rule #1. What is this? apply for Timothy Sykes Challenge and learn everything you need to know about trading! Penny Stocking Silver works too if you’re wanting to take baby steps. But I will be nice and let you know what this rule is – Cut Losses QUICKLY!
When taking singles vs. homeruns, you MUST know how to cut your loss when the stock goes against you. Trading is about being opposite – which can be very tricky for traders to learn. Have a trading plan!
Cutting Losses Quickly
By learning to cut losses quickly when a stock goes against your plan, you are already ahead of many traders that lose. Most traders are greedy; after all, they want “hot stock picks” or to “get rich quick” which is the Wrong Mindset! They are the ones who create the singles vs. homeruns lessons that many traders must learn!
Psychology is the biggest obstacle to overcome in the market. You want to profit and take home runs, especially when you see traders post about their $1,000 – $100,000 gains!
FOMO gets to you (fear of missing out)!
You want those profit results!
That is why you MUST begin your education today!!!
Singles Vs. Homeruns – Which One are You?
Going for Homeruns
Many traders dream of home runs. While scrolling through websites that show stocks increasing from 100% all the way to the thousands in percentage, many traders jump on the band wagon and want to go “to the moon” in profits. This is a dream that doesn’t exist. You want honesty, well here it is. Those traders tend to “blow up” their trading accounts.
By “blowing up” I mean two things:
- They are going long and believe in traders who are hyping the stock. Blowing it out of proportion in order for traders to hold and hope the stock continues up – all while those pumpers are selling into the buying. These stocks eventually fail and long traders are left “holding the bag” – hoping the stock will spike again for unlimited profits.
- These traders are shorting the stock. They think it is overvalued at $2.00 (or whatever price) and begin betting against it in the hopes that it crashes down – this is usually done without the right signs of panic. Doing so can cause the stock to squeeze the shorts with the potential for the stock to spike all the way to $60.00 a share like $KODK did the other day. These traders add, and add, and add to their position as the stock increases until they are “blown up”. They now are out of money, negative in the account and owing their broker (yes you can go negative and now owe a debt to your broker), or the broker buys them in because they have no more money to lose and the broker doesn’t want that debt. The covering by shorts causes increases the buying power which drives the stock up. For more information, click this link, and learn!
Anyways, those are some result that happen to most traders who try to capture home runs. People are greedy by wanting 100%, 200%, 300% plus in gains and won’t lock-in the profits they already have in front of them OR they won’t cut their losses quickly when a stock goes against them.
Locking in Singles
Locking in profits by taking singles vs. homeruns. You won’t get much safer than this. By locking in your profits when you reach 5% – 10% – 15% gains, you grow your account slowly but a little more safely over time. (Remember, this is not an exact science and 90-95% of traders lose. Don’t invest/trade with any money you aren’t willing to lose. Trading is very risky and takes many years and hours of dedication to studies and is never guaranteed. Traders who profit such as Tim Sykes’ top students have exceptional skills that they have refined over time!)
This is what Tim teaches his students. Education takes time and to learn his tricks he has to retrain your brain! What has helped me during my journey learning to lock in profits a lot more is his Learn Level 2 DVD. Many of you reading this blog may not even know what Level 2 is, that is why your education is detrimental to your potential success in this field!
Anyways, learning to lock in a small percent or “meat of the move” is the way to safely grow your account over time. This is not as exciting as making those 100% gains, but those guys are more likely to lose in the long run.
Trading is a Marathon Not a Sprint
Having a “marathon mindset” is the best way to take singles vs. homeruns, defeat FOMO and last in this game to potential freedom instead of working that dreadful 9-5 job. By preparing yourself and dedicating your time to 3-5-10 year of studying this niche, you are bound to show some kind of progress.
By setting ridiculous goals for yourself and tracking all of your trades transparently, along with TraderSync – a personal journal to help you refine your strategy, this sets the bar for higher expectations; which in turn, creates something more than most who have no goals at all.
Babies learn to lift their head up before they can sit up. Next is rolling over then crawling. The successful ones begin to walk before they run. And this mindset is what you need to have any chance staying in the trading world. You may blow up a time or two, but as long as you keep up with your education and refocus your psychology, over time, you may take a profit here or there.