Here’s What To Do Before You Start Trading

– [Tim] Hey everyone, lead
trader with Stocks to Trade Tim Bohen here. Here with Trading with the Tims, I think that’s the name
we settled on, maybe? But here with Tim Sykes,
millionaire, mentor and trader. What we’re doing in these
videos is just kinda going over your questions. We would like to, you know,
there’s so many new traders or people that are interested, and they’re kinda intimidated. You know, there’s thousands
of books on Amazon. There’s all these instructional materials, where to get started, so we
like to be open to any question. If you like what we talk about today, or if you want to know
more, just comment below. We’ll take any question,
anything’s on the table. – A lot of you ask me, you
know, what should I start with? Everyone’s different first of all, you can obviously just study
these free video lessons. You don’t have to trade at all. – Yeah, you can paper trade with stock. – But if you were to open an account, what would you say is a good number? – Well I mean I think it,
obviously like you said, varies for everyone, but
I think you can learn, and you can get better, and
you can build an account and build your knowledge account. I don’t want to steal
your copyrighted title. – Trademarked
– But, as a new trader… You’re not trying to
make bank, bro, today. I love that, you know but,
you’re not trying to double, triple, quadruple your account today. You’re trying to learn skills today for next month, for next year. So I think two or three thousand dollars, you can buy 500 shares of a $2 stock. You can buy 1000 shares of a $2 stock. You can get started trading
these patterns, and remember, I talk about the rule of ten a lot. You can buy, you know,
ten shares of a $50 stock. These stocks skip big moves,
so couple thousand bucks I think is good to learn with. Now, do not expect that you’re going to make a million dollars next year, start with a $2000 account. It’s not realistic. But that’s not your goal as a new trader. – The money that you make or lose in the beginning is negligible. It’s irrelevant. It’s all part of your market tuition. – I talk to people all the time. I want to see entries
and exits on a chart. You know, which stocks you
trade in the training program. They’ll come to me and they’ll be like, ‘Man I only make 50 bucks on this trade.’ And I look at the chart and I’m like, ‘You took a dollar a share, on a $2 stock. ‘I don’t care if you only made 50 bucks… – Good trade.
– ‘Because that’s ‘a great trade.’ And now, a year from
now, two years from now, once you build your account, you size up. That’s a $5000, $50,000 trade. – That’s the thing, you want
to learn with a small account. In the beginning, get
used to the volatility, get used to the patterns. If you buy, let’s say,
500 shares of a $2 stock, that’s $1000 right? Let’s say you have like a $3000 account. So you’re using a third of
your account on a $2 stock. 500 shares right? Let’s say that stock is, I
don’t know, a billionaire play. Like a new billionaire
just invested in it, that’s usually a good catalyst. Or an earnings win,… – Marijuana, CBD…
– Or a new product, something Let’s say this stock, you
think can go to three. But you buy 500 shares
at two, even if you think it can go to three, it
goes to 2.50, you sell! You lock in that $250. Your $3000 account goes up nearly 10%. Not big money, but good practice, a good part of your experience. Now fast forward let’s
say ten years from now. When you have that same kind of setup, and ideally you have a bigger account. And you don’t just buy 500 shares, let’s say you buy 20,000 shares. And you make the same
exact, .50 cents a share, maybe a little more, but you know, ten years from now you
have a lot more experience. Let’s just say you made .50
cents a share on 10,000 shares. That’s $5000. So the $250 that you made now,
it might not seem like a lot. And maybe you won’t even make
$250, maybe you make $50 now. But what can you do today, this
week, this month, this year, that will put you in position
to make the same trade with a bigger position
size a few years from now? – Yep.
– How much can you practice now so that you’re fully prepared. You don’t want to not have any experience, and then ten years from now you’re still taking
picks from somebody else. You’re not self-sufficient,
and you have more money, and you don’t know what to do. You want to practice as soon as possible. So, if you want to start with $2000 in your account that’s fantastic. If you want to start with
$3000 that’s fantastic. – And I actually…
– Start with $500, it doesn’t matter what you
do, just start right now! Start studying. Start getting the experience. – And I think the constraints
of a small account is a good thing as well. I mean, force yourself to be disciplined. Because if you’ve got that $2000 account and you’re letting that loss run, I would much rather see you
losing that on a $2000 account than a 20 or a $200,000 account. – Exactly…
– I think… – Your back is up against the wall. – Exactly.
– You don’t have a choice. – And it forces that discipline, because you’re looking at that number, and you’re looking at your account size, and you’re like, ‘I do not wanna be in this
losing trade anymore.’ So that is so much more important when you’ve got that small
account versus the big account. Because we’ve seen it. We’ve both, I’ve been around 12 years, you’ve been around 20. So many of these guys, and gals sometimes, make these huge sprints
and then they disappear, because they never were
constrained by that small account, and the discipline that follows. – Too many people want
success too quickly, so we try to change your mindset. Have patience. Trust me, we want you
to make a lot of money, but you got to make money the right way. If you’re too aggressive
you say, ‘Screw these tips. ‘We’re just going to bet big now. ‘I want money now.’ You’ll likely lose it. We’ve seen a lot of
traders bet big, go big. They say, ‘Screw your
conservative approach.’ Then six months, nine months
later they lose it all. – Yep. – They lose 50%. They get
very introspective on Twitter. What I did wrong, and all this stuff. If you just listen to us in the beginning, you wouldn’t have those problems. You’d build a nice
informational experience. You know, a base foundation. Think about it like that. If you want to build a building,
and I’m not an architect, but if you want to build
this tall skyscraper you don’t start at the top, and start building the 86th
floor up to the 100th floor. You have to build the foundation first. – Yep. – You need a trading
foundation, so start studying, start small, get under the PDT rule. Some people say, ‘What
do you think about this?’ The PDT rule allows you only three day trades per week, under 25,000. So some people say, ‘Okay
Tims, we know that you say ‘to start small, but shouldn’t
we start with over 25,000?’ My answer is no! Three day trades per
week is more than enough to focus on the best plays, and you can hold the stock overnight. It’s not three total trades per
week, it’s three day trades. – And I, yeah, I 1,000% agree. Because if you’re new, and
you’re trading more than that, your odds of success are terrible. Something about trading that
so many don’t understand is more is not better. Typically less is better. And if you’re like, ‘Wow my path to success is
making ten trades a year?’ Or ten, sorry, ten trades a day. That is not your path to success. You want to set there, again
back to those constraints. I think that’s a powerful thing. Where you’re like, ‘Hey I only have three trades
in a rolling five day period. ‘I have to not trade some mediocre setup. ‘I have to find a stock
that’s breaking out, ‘that’s an earnings winner,
that is ran in the pass, ‘that’s maybe a low float,
that’s also in a hot sector.’ So now I just listed five reasons that make this a good trade. That’s something I want to make versus okay I’m just going to throw
stuff at the wall today. – Yeah so we want you to get experience, but you have to wait for the good setup. You have to wait for multiple indicators to be in your favor. If you’re just practicing,
getting experience, every day trading random
stuff, that’s not experience. – If anything it teaches bad habits. – It’s bad habits. It’s going to frustrate you. It’s not going to make
you money now or later. You’re going to come away, as
so many people do in trading, ‘Oh trading is so hard.’ Trading is hard if you don’t pay attention to what actually works, okay? If you’re just trying
everything you’re like, ‘Well you said to experiment.’ Experiment using our guidelines okay? We share this stuff with you
to speed up your journey, not to confuse you, and
not to discourage you. If you learn from, let’s say a newbie, someone who says, ‘Oh
I made all this money.’ But they haven’t
experienced other markets. – Right. – Maybe you make some
money in the short term, and then you’re very
crushed in the long run. We don’t want that. The biggest money that people will make, year five, year seven, year ten, year 20. Okay that’s the mindset, that’s the kind of patience
that you need, frankly. Maybe it’ll happen sooner. That’s beautiful if it does. If there’s another big market run, if another hot sector takes off, but start thinking about
what can you do right now to put yourself in the best
position decades from now. And even though decades sounds far, if you put in, let’s say an hour a day, of studying our video lessons and webinars you have what, 1,200 webinars? – Yes. – 1,200 webinars, I have over 1,000. If you’re watching this
stuff, it’s so so useful. And I know some people will be like, ‘I don’t want to watch it. ‘It gets so repetitive.’ It’s good when you see
that it’s repetitive. This is not freaking rocket science, okay? You’re not learning formula,
after formula, after formula. You’re learning very basic
system to trade with, and you’re seeing example,
after example, after example. Some people say, ‘Well how do
I get confidence in a trade? ‘How do I get confidence in a pattern?’ If you see the same
thing happening 50 times, you start saying, ‘Oh what’s
going to happen on time 51?’ If you’ve only seen something
happen once or twice, how are you going to get confidence? You can’t have confidence, because you haven’t studied enough. Studying and preparation
helps you get more confidence. Experience is the best tool, but if you’re watching this
you’re probably just beginning. It’s okay, you don’t have experience. Learn from our experience. Learn from years and
decades of our hard work. That’s how you play catch-up. I have to go give a podcast right now with Eventual Millionaire. I’m multi-tasking like a mothertrucker. Tim Bohen is going to go shave his head, because he grows more
hair like every hour. But leave a comment underneath, what you think about this video. I joke a lot, I kid, get over it. Some of you guys are too uptight. Screw you. Those of you guys who
are laughing, fantastic. Welcome to the club. Leave comments below. – Yeah let us know what, you know we talked about
account size in this video. You can get started with a small account. You know focus on those constraints. Focus on good charts. Focus on good trades. And again comment below, let us know the topic
you’d like us to answer. (upbeat music)
– Hey Tim Sykes, millionaire, mentor and trader. Thank you for watching my videos. I hope that they help you. I want to share everything that
I’ve learned over the years. You can check out more
videos right over there. And also, click subscribe
so that you can watch all of these videos, get that knowledge, and become my next millionaire student.

99 thoughts on “Here’s What To Do Before You Start Trading

  1. It's difficult to not to loose patience and get greedy after all it's human nature. I think the taste of big wins for some is too much to handle.. Thanks again for the reminders

  2. Study on YouTube, Pennystocking 101, The complete Pennyshocking Course and American Hedge Fund book, Pennystocking, Pennystocking part deux, shortstocking, how to make millions, traderchecklist, Timindicaters, webinars, Tim Grittani's DVDs and then eventually TimChallnge.

  3. Thank you Timothy Sykes and Tim Bohen. I do enjoy the repetitiveness as I like to reinforce my own knowledge and to really drill some of the lessons into myself, as well as recognize the things that stick because those are the things that last. I do have a question, what should I rate specific catalysts? Like, earnings winners are great, but sometimes the earnings is not what the market expects. I see things like publicly announced conferences to talk about their 10-k results, even news that say they're going to do just that. I know it's just one catalyst, but it is an important one and I would like to better my understanding with it so I can start to be more proactive instead of reactive (though always maintaining discipline).

  4. Tim, I'm really interested, but I don't have the money your asking for to get into the program. What ashame

  5. Great video!!! Definitely agree with everything. What is the best time to start trading??? Is summer bad???

  6. Love the straightforwardness in all the videos it's like slapping someone in the head and telling them to get their shit together.
    I hope to build up my account with all your teachings and techniques and I just signed up to your challenge as well on my day off. Ima try my best to become your next millionaire student! You fucking rock bro! Thanks for your help!

  7. I just turned 60. My plan is to rigorously follow these rules so at 65 I'm in control of my future. I would give an arm or a leg to be in my 20s, 30s or 40s and spend that 5 years to be successful. Think about this guy's. In economies that are rigged… who better to look after your future then yourself?! Run out and get your four-year degree, accumulate massive debt and try to put away 10 or 20% in a savings vehicle… or minimize your cost of Education and dedicate your four years to something that does not fluctuate with the job market or employment rate! And this material does not require a degree to understand! This is as close to a Level Playing Field as you can get.
    Thanks Tim(s)!

  8. The one thing i’m a bit iffy about is, will the market still be the same after ten years with al the algo supercomputers. What you guys think. I hope they dont ruin the markets. Imo the low floats are the only ones where there isnt so much competition (yet) i traded fx succesfully for some time but for short term is isnt doable long term. To much covering from both sides with the computers. Choppy and spikes which isnt reliable.

  9. hi tim been following you for a while now and joined the lessons and just now i downloaded web trader at IB just like you recommended in 1 of your videos, next download is ps silver, boy ,,,,alot of reading and listening to go through, but im ready to learn and go all the way……1 thing that would help beginners is a video on just how to start, example a link to download web trader for IB and a clear video in focus on how to use. the video is saw was out of focus…anyway i see you are just overloaded but you r having fun teaching to help us become economically independent…tim i believe in you … are going to help me save my life and my families ….if im succesfull i would like to meet with you. God Bless…

  10. Because of Tim Sykes I want to do what he's doing. I will educate myself first to the best of my abilities with the helpful and abundant resources that he's offering and then head on to the battlefield hopefully equipped.

    Tim, i saw you on Mark Weins' vlog in Sri Lanka. I wana treat you there at the Ministry of Crabs one day when I make it like you have. LoL. Peace! Continue to be the inspiration that you are.

  11. Truth is people would rather gamble then learn.. the is an art to having your money work for u properly, learning the that art in the market takes time and study, more importantly PASSION!!!! Thank you TIM SYkes for at least caring enough to show others the way !!!!!!!!!

  12. I so needed to hear this today! I have to be patient and develop discipline! I get so anxious and make stupid mistakes. I also second guess my decisions instead on trusting what I have learned.

  13. So true about experience grows profit. I really like watching you both & Tim Sykes makes me laugh sometimes. LOL this is not F’n rocket science! LMAO… but yea, you guys are for real & no BS. Guys & Gals do your homework!!!!

  14. Thanks for another great video guys, I appreciate the time that must go into doing this. I'm thinking that being a coward trader is the way to go. That is my goal for now.

  15. Thanks gents for the advice….. will take it slow and learn properly to gain more experience and confidence.

  16. the key to success is practice practice, practice, practice!!! But first study the correct way to practice. Build the foundation as said by Tim

  17. I got a question. What do you guys think of penny stock scanners?

    I recently tried a few phone apps that scan and pick up stocks going big in the pre market. I then look to see if the news on them really has the legs and then I invest maybe 2-3k on them. I have had some success but I also feel like it's kinda lazy. I mean they have helped me make some good trades I would not have found otherwise, but I also feel like I shouldn't depend on them entirely.

    any thoughts appreciated

  18. Ok let's say that I have the 2000 💵, I study, I watched a lot of your videos, I'm ready to start. Now I go to stockstotrade create an account but do I need a broker as well in combination with stockstotrade or is it separate? By the way I'm outside the USA but I can trade from all over the world right? Also I have a little bit of Forex trading experience will it help?

  19. The Dv SpI strategy can help you make good profit i make $13,000 in weeks with the DV SPI strategy and when you Use both an SMA and shorter term EMA. When the EMA crosses above

    the SMA (on any time frame) then BUY. Make sure there is a lot of volume at the start of this crossover. When the EMA crosses below the SMA, sell. For example, on the daily chart, use a 50SMA and a 15 EMA. Go forth and also the DV SPI strategy can authomatically trade for itself and i can show you how, if only you can contact via my email at [email protected]

  20. Thank you Tim for the pearls of knowledge the more I listen to the lessons the better I understand . Can't wait to get started Ensenada BC

  21. IF i know nothing about trading and I want to invest for the next 3 months to learn , can you please let me know from where I can start to learn from you because their's alot of content and I've watched alot of them and recognizing the main principles to be prepared.
    I want to learn the technicalities and know how

  22. Been watching and learning from you. Have a paper account now but ready to take the next step. Waiting on the interview process to begin. I’m ready to learn master Yoda!

  23. beautiful video, please make a video on live trade even a paper trade with IB still dont understand how trader workstation works, a detailed video of what mistakes can happen

  24. "Success in life is the result of good judgment. Good judgment is usually the result of experience. And experience is usually the result of bad judgment." Tony Robbins

  25. Other Tim’s Michigan (or perhaps OH, IL, it IN) accents is freaking strong! “Let us know the taaapic…”

  26. I am having my first interview for your student challenge and I feel like you guys will be the right fit for me. A slow steady approach with good trades is really going to benefit me in the long run.

  27. Great videos guys, do either of you use a hot keys system to enter and exit trades? Maybe a video worth topic. Thanks!

  28. Timothy Sykes Your fkin crazy . Appreciate yalls time thank you
    What's up with only able to make three stock trades a week fcc law why is this bs against us

  29. Studying and saving $$$$ to purchase necessary tools for my future! Profitly and stocks to trade are my next purchases in that order. I CAN NOT wait! Just finished The Complete Penny Stock Course. The more I learn the more desire I get to learn MORE. It may take me longer than most because of my financial situation but success will taste that much sweeter.

  30. Yaaaaaaaas #waitfortherightentry I don’t focus on doing 10+ trades in a day Idc if I do 3-1… you just gotta be patient and just go in at the right time.

  31. Tim Sykes First time ive watched you other than in an ad. And i gotta say already have a ridiculous amount of respect for you. Gunna keep watching and learning.

  32. If you start with a 500 account what should your risk percentage be ? Like your minimum loss on a trade? I just want to practice and not trying to get big gains but just learn to get gains. Thanks for the great insight.

  33. Don't care what people post about you. You're a common sense in your face no restraints kinda mf'er. Gotta love that. Small real money account is how I started in March, a paper account just wouldn't have instilled the same fear in me.

  34. Heard once said, intelligence is time management.. I'm going to take the time to watch and learn from all of your videos Tim, thank you

  35. I thought you can make as many trades as you want with a cash account , are you talking about a CB margin account under 25000 or a cash account ?

  36. So I started two days ago and did invest 80.00.. then today I found your videos. U r absolutely right. I've got get my knowledge up first.. I've studied 6 hrs today but the girlfriends getting a tad shitty so I'm gonna give it a rest… regardless its study time. … I will b a millionaire so I can finally live the life I e dreamed of.. money is just a way to do it. Keep it up man please.. morganfield ky… thank u more than u know!!

  37. U said lol..some of u guys are too uptight screw u lmmfao. I have 400 dollars in my Robin hood account. Should I cash it out and start implementing the strategies and stuff I've learned or just keep watching videos. And where do I get the best simulator ? Forex? It's just up or down yadyada I think?

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