{CURRENCY MARKETS} Losses
{I’d like} more Millionaire Trading Challenge students {in order to avoid} {currency markets} losses {also to} accomplish this {I have to} {allow you to get} thinking and trading {just how} millionaire traders do…and remember, {I really do} {involve some} knowledge in this field {since i have} started with {several} thousand dollars and turned it into 7-figures, years before I’ve now mentored {Many of} my Millionaire Trading Challenge students {to accomplish} {exactly the same} ({be cautious} learning from any non-millionaire trader who doesn’t show EVERY trade publicly, they’re usually {filled with} crap, or worse, don’t teach good trading rules {and you also} only realize it {once you} lose big aka when it’s too late)**
Download a PDF version {of the} post as PDF.
So {rather than just} focusing solely on profitable trades, {figure out how to} analyze {the marketplace} as a whole…not necessarily {the complete} {currency markets} – this isn’t right-35%-of-the-time-CNBC – but analyzing sectors {which are} in play as a whole…like the weed stock sector…and protect yourself when sector momentum turns against you.
{Should anyone ever} {love} this sector, or any sector, please {be sure you} read {this short article}, {so when} the momentum shifts, {figure out how to} protect yourself and cut losses fast {exactly like} I outline in this must watch video lesson (which {we’ve} also transcribed below for my valued deaf Trading Challenge students!):
{Fine}, Tim Sykes here. {Just what a} difference {each day} makes. I don’t {even understand} {where to start}.
{I assume} I’ll {focus on} this news, that the U.S. is ending the policy that let legal pot flourish. This {arrived} right before {the marketplace} opened. Pot stocks {have already been} so hot lately and I was actually long {using one} {starightaway|instantly}. I don’t like chasing, {therefore i} actually took {among the} least over-extended plays, {nonetheless it} doesn’t matter. {You understand}, {if you find} news {such as this}, {I believe} this {arrived}, like, what, 10, 15, 20 minutes {prior to the} market opened, this crushes {all of the} pot stocks equally.
And {the very best} {that you can do|that can be done} is to {make an effort to} minimize losses, and {I did so} a really, {excellent} job. I actually finished up {a couple of hundred} dollars with the morning trades. {I’m} out of day trades, so I’m gonna {want to do} overnight trades for {all of those other} week because {I’m} trading with {a little} account {this season}. I’m {slightly} over $12,000. {However now}, already, in 2017…or 2018, {I’ve} grown it by roughly $1,000. Not perfect trading, {you understand}, but {very good} loss containment on CBDS. Actually, really, {this is} the best…probably {the very best} trade I’ve done {this season}, {the very best} trade I’ve done in {some time}, {despite the fact that} I lost money. I lost roughly $8. {Here’s} CBDS now, down 23%. {This is} the chart I was buying yesterday. {It had been} a nice, {excellent} breakout.**
I gave a webinar to my Challenge students, {discussing} how I don’t {enjoy} buying…you know, {that is} {sort of}, like, day three, after it’s, {you understand}, up from six {completely} to the nine, {therefore i} don’t like buying that. {But it addittionally} was {a good} breakout above {the prior} {most of} the eights, {and when} you look at {a few of the} other, {you understand}, pot stocks, {you understand}, this too had {a large} breakout. And, {you understand}, ignore the {proven fact that} they’re all crashing today. {That is} just {because of} that news. But this was…CANN was more over-extended. CNBX, {this is} more over-extended. Now they’re just getting {applied for} and shot.
But, I chose CBDS, not because {I really like} trading $9 stocks with {a little} account but {since it} was {minimal} over-extended. {Also it} was {around} the 970s after hours in pre-market today, coulda shoulda woulda probably gotten out. It’s tough {to obtain} executions on OTC stocks, pre-market and after hours. Technically they’re not {likely to} trade, but trades do sneak through.
And {I simply} couldn’t {escape}, so the {very first thing} {I did so} today was, {you understand}, sell. {If you have} negative news {like this}, it’s {nothing like}, oh, maybe {the news headlines} will affect the stock, maybe it won’t. It’s like, hide your wives, hide {your children}, like, protect your ass. It doesn’t matter how good the chart is. When, {you understand}, you have legalized pot, right, {that is} already questionable, {and} you have this news break and the headline is gonna “end policy that let legal pot flourish”, {After all}, it’s…Also, {in the event that you} {browse the} article, {After all}, it’s {not} official yet, it’s just {in accordance with} two sources {that is} the minimum {necessary for} {articles}. The journalist needs two sources. So, it’s very, very speculative news, but {it is a} very, very speculative sector, so {needless to say} {the news headlines} is gonna be speculative. Anyways, {the news headlines} crushed the stock. I cut my losses quickly. That’s {the primary} lesson there.
CANN just keeps dropping, down 28% now. CNBX, {that i} actually dip bought…You know, {I really do} like dip buying these morning panics, but it’s tough {with this particular} news. So, {lots of|plenty of} you guys want, like, these rules that just work {at all times|constantly|on a regular basis|continuously}. Like, okay, if it’s this pattern, {you then} buy. If it’s this pattern, you don’t buy. It’s all {attempting to} judge {the problem}. The pattern {here’s} perfect, {however the} news {is actually}, really {harmful to} this sector. {You understand}, it’s a sector-wide {sort of} news, and that’s why they’re all down 20-30%.
So, {I acquired} {just a little} bounce on CNBX, {you understand}, {one of these brilliant} bounces. I don’t {even understand} which one. {I believe} {it could} have been…was it {the initial} one? Yeah, {I believe} it was {the initial} one that {I acquired} the bounce on. Or, actually, I didn’t even sell in {the initial} bounce. I saw {the initial} bounce, then it came down, {and} I {sort of} double {got it} and {I acquired} out on {the next} bounce. Long story short, these stocks aren’t bouncing {quite definitely}. They’re also up {quite a bit}, so maybe tomorrow, maybe later today, maybe somebody {should come} out and say, “This news is false,” or, you know…I don’t {know very well what} can happen. {They’re} potential dip buys but, {at this time}, {you merely} have very over-extended pot stocks {which are} getting crushed.
Look at NUGS. NUGS, N-U-G-S. Okay, {that one} {happens to be} bouncing nicely. The bounces aren’t perfect. {This is} just true panic, from 5.7 {right down to} 2.7, {and today} {you’ve got a} nice, little $0.70-a-share bounce. {That is} tough to play. {You understand}, {if you have} lower lows, lower highs, {you understand}, {you imagine} this bounce is gonna work, {you imagine} this bounce is gonna work, and neither {of these} {achieve this} you {give up} {the 3rd} bounce, and {the 3rd} bounce {may be the} {one which} works. So, it’s {sort of} tricky. {Whatever you} {really can} do is, A, if you’re long, protect yourself. B, congratulations if you’re short.
I had {some individuals} {in my own} chat room {who have been} short. Where was it? {Way too many} people {nowadays}. Where was it? Oh, I congratulated michaelmason, “Covered {1 / 2 of} CANN,” for $1,700 in profits.** Interactive Brokers had shares to short yesterday. I don’t know {should they} had shares to short today, but I’m guessing michaelmason took {some of these} shares to short on CANN. Good job.
Also, millaced, on CNET, in at 2.82, sold for $217 profit0.** CNET is {around} the threes. Where was…There was {an added} trade. Oh, Lekha, in and {from} NUGS for $644,** {so excellent} job, Lekha. {That is} my Challenge students, {they are} my most dedicated students. So, I’m {pleased with} them studying and testing. {There is} one more {one who} had {an extremely} nice profit {I wish to|I would like to} congratulate. Don’t know…I don’t know. There’s {lots of|plenty of} plays, and the lesson here {that you could} learn…oh, lozanopool just made, {you understand}, nearly $0.50 on FTFT, that’s in play again, too.**
{The primary} lesson {that you could} {study from} these plays is, A, if you’re long overnight and there’s negative news on a speculative sector, {you merely} cut your losses. I lost {a cent} a share on CBDS. I actually got {an extremely} good execution on the exit, because these stocks {aren’t} always easiest {to market}.
{Plus some} of you guys are asking me already, like, how did I sell so quickly, what limit price did {I take advantage of}. {I take advantage of} a limit price of nine, and {I acquired} out, you know…I was {ready to} lose. I was {for the reason that}, like, 918…919, to be exact. So, I was {ready to} lose, like $0.20. The bid {had not been} at nine, {I simply} gave it extra leeway just to…you know, {in the event} it was…started dropping quickly. In hindsight, I probably {must have} used, like, 880, {rather than} tried to, like, {you understand}, {value} $0.10 or $0.20 a share. I only had 500 shares, so we’re {discussing} $100. {You want to} {drive back} this.&&
{In case you have|For those who have|When you have|Should you have} {a little} account, {you understand}, {and you also} have 500 shares, {and you also} lose $1 a share or you lose $2 a share, about $500 or $1,000 loss really hurts. I lost $8, {it generally does not} hurt at all. And I {managed to get} back with my CNBX dip buy already, {therefore i} still made {a couple of hundred} dollars. {If you have} {a little} account, {all of your} goal {would be to} try to {create a} few hundred dollars. You’re {looking to get} {nearer to} the magical pattern day trader rule limit of $25,000, {and} {you could be|you may be|you will be} free.
{Plus some} of you guys will say, “Well, Tim, why don’t {you merely} do an offshore broker? {You then} don’t have the pattern day trader rule.” I don’t trust offshore brokers, I don’t think anybody should. They’re {in the same way} speculative as these pot stocks, except you’re putting {your cash} with them. {And when} something goes wrong, there’s no FDIC insurance, so I’m not using offshore brokers. {I take advantage of} E*TRADE and Interactive Brokers. I gotta write {a complete} blog post {in what} I’m trading {with this particular} year, in 2018. But, {I simply} wanna play it nice and safe when {I’ve} {a little} account.
And the pattern day trader rule {is in fact} good. It forces {one to} learn good habits and discipline and, {you understand}, you can {sort of} {utilize it} as, like, training mode, {you understand}, until you {reach} $25,000. {All this} is training mode. Whether I make or lose {a couple of hundred} dollars, it doesn’t matter. It’s just practicing good habits and cutting losses quickly, {and} that stuff really matters and {is really} amplified, {you understand}, {the results} of whether you learn it or you don’t learn {it really is} amplified {as soon as you} {overcome} $25,000, because then you’re {coping with} {a lot of money}. And, {in the event that you} haven’t learned to cut losses quickly, then {just forget about} losing…the difference between losing $8 or $1,000. {You understand}, if you’re trading with bigger accounts, the difference between {having the ability to} cut losses quickly and being disciplined or not, {you understand}, {you may} lose $1,000 or lose $20,000. So, it’s good {to stay} training mode. {You understand}, {a long time ago}, {I purchased} some jet skis {plus they} had this training mode {that has been} required, {you understand}, {that you should|so that you can|that you can} drive them {initially} in {working out} mode {and obtain} used {compared to that}. And I {sort of} compare that with trading under $25,000. {I love} being {beneath the} pattern day trader rule.
{Having said that}, it’s my goal {to obtain} {from it}, but {I must} {persuade} myself that {I could} {escape} it. {I’d} much rather you guys {focus on} $1,000, $2,000, $3,000, $5,000, and learn {steps to make} $10,000, $15,000, $20,000, {learn to|figure out how to|discover ways to} grow your account exponentially, {instead of}, you know, {you start with} $20,000 and {attempting to} make {slightly} {little bit of} money {and}, you know, {getting away from} {working out} zone.**FF The more training you have, {the higher}. And it’s tough {to teach} {after you have|when you have} {a lot of money}, because you’re {centered on}, you know, {earning money}. Like, that’s what this game {is about|is focused on}, right? But, {due to} my training, {I must say i} executed CBDS well. CNBX, {I acquired} {just a little} bounce.
{After all}, just {understand this}. {I want to} just {demonstrate} the watch list {at this time}. Yesterday, {After all}, {through the} Challenge webinars, I was marveling {the truth that} {there have been} two dozen weed stocks {which were} up 20%, 25%, 30%, 50%, 100%, 200% on {your day}. Now, it’s {a complete} change where you have 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13…13 stocks down {a lot more than} 10%. {Even while} bad as {that is}, it’s {much less} bad, {you understand}, {in comparison to} yesterday’s {nutrients}. {It had been} actually pretty crazy how well these stocks {remain} holding up. {You understand}, yesterday {there have been}, {I believe}, 18 or 20 stocks {which are} up 20-25% {or even more}, and now, {After all}, {a number of them|many of them} {are receiving} destroyed, like NUGS and POTN and CNBX and BUDZ. {You understand}, {each one of these} weed stocks {are receiving} destroyed. Wow, look at CBDS, it just keeps going.
I {read within the} chat room, one guy was like, “I didn’t sell so now I’m just gonna ride it.” Bad, bad choice. {You understand}, there’s no riding this, okay? {If you believe|If you feel} {of the} stuff as, like, shit, {that you} should, {you understand}, {most of these} companies are shit, I’ll {create a} crude analogy {that} shit {falls} {the bathroom .} eventually. And you’re gonna {make an effort to} ride that wave? {I must say i} would not, {you understand}, try to {do this}. I’ve learned one extraordinarily valuable lesson {through the years}, {which is} cut losses quickly when you’re wrong.
{So when} you have news {such as this}, {it is a} game changer, okay, for a speculative stock. {This is simply not} {a casino game} changer that…it’s not gonna break the legalized pot industry forever. {It is a} game changer for today. {It is a} game changer {because of this} latest round of spiking, {and you also} have to {notice that}. And {the earlier} you {notice that}, {the higher}. Whether you lose {a cent} like {I did so}, best case scenario, or you lose $0.20 or $0.50, just don’t lose $1 or $2 or $3 a share and {decrease} with {the rest}.
{You understand}, it pisses me off. {I did so} an article…let me see this. {That which was} it? Let’s see, buying high. They changed the ticker…or, they changed {the net} address…mjsykes, too. {It had been} for Men’s Journal {plus they} changed their whole website around, {therefore i} think I had {to improve} my little Bitly link that I saved it. {It had been} so nice and {possible for} me {to save lots of}. Look {how lousy} my wi-fi is, I can’t even {do that}. This is {one more thing}. Like, I’m not on good wi-fi right now…here {it really is}. {When} you’re not on good wi-fi, {you understand}, {you need to be} {careful}. No, I don’t wanna watch your stupid ad.
{This is} {a couple of years} ago, “Buying High: {Ways to get} Rich on Pot Stocks,” {also it} was me versus {he} who had fallen {deeply in love with} pot stocks, saying, “{This is actually the} future. It’s always gonna {prosper},” {also it} just didn’t. {Also it} flamed out and the reporter was there, this…you know, this reporter actually followed both {folks} around {for a number of|for many} months. So, {this is} {an excellent} story and I encourage you all {to learn} it. I’ll link it underneath this video.
But, {way too many} people get confused with, {you understand}, a hot sector, {plus they} {believe that|believe} that hot sector {may be the} future, and that’s how they invest. {You understand}, they ride the wave. And, {you understand}, {in the event that you} believed in Blockchain or Bitcoin, {you genuinely believe in} it and, {you understand}, you’re rewarded {not only} with 100% or 200% wins, you’re up, like…you know, {some individuals} are up 50 times, 100 times, their money. {If you truly believe in} something, {this is the} secret. {The thing is} that, now, Blockchain, Bitcoin, and weed {are} up {a significant} amount. So, {if you truly believe in} it this late in {the overall game} it’s very dangerous, and that’s why you see these stocks dropping 20%, 30%, 40%, 50%, {per day}.
{And you also} don’t {have to} hold {during that}. It blows my mind {just how many} people hold through {these things} because they {feel just like} they’re married {to the} stock, or they’re married to these sectors. {Which} happened, {you understand}, {this is} in 2014, {nearly every} single pot stock {that has been} hot {in the past} went bust. Okay? It doesn’t matter if legalized pot {is really a} booming or fast-growing industry. These individual {very cheap stocks}, these individual little {bits of} shits, {aren’t} gonna {ensure it is}. {There could be} 1 out of, {you understand}, 500-plus pot stocks that I’m watching {that may|which will} {ensure it is}, and {the chances} of you {discovering that} one are literally 1 in 500, or probably even less, because it’s so random {and you also} don’t know, {you understand}, what it’s gonna {try} {make} it. {You understand}, {you may have} {an organization} with {an awful} CEO and terrible management but, {for reasons uknown}, they {get yourself a} patent or, {for reasons uknown}, {you understand}, their stupid product {will take off}.
{You understand}, {in the event that you} remember…what {could it be}? True Religion Jeans, they {was previously} a stock, TRLJ. They got acquired. But, they {began} as a Vancouver pump-and-dump, and the jeans actually {became popular}, you know? {These were} pumping up these piece-of-crap jeans, and True Religion Jeans actually, {you understand}, made it. {There is} no indication whatsoever that that company would {ensure it is}. {Of the many} pump-and-dumps that I’ve ever traded, {you understand}, 99.9% {of these} have crashed. So, there’s {no chance} {you could} have guessed that True Religion would {ensure it is}. It was {only a} fashion statement. {Also it} was {sort of} funny, I don’t know {should they} still {own it}, but True Religion had a {shop} {directly on} Wall Street, for no reason. Literally, {directly on} Wall Street, in {NEW YORK}, True Religion Jeans, and {I believe} it was {only a} statement, to {end up like}, “Ha, we were, {you understand}, a pump-and-dump and we {managed to get}, so we’re gonna put our office…,” {not} an office, a {shop}, “on Wall Street,” {that is} just ridiculous.
But, {the key reason why} I bring this up is {way too many} of you guys don’t cut losses. {Way too many} of you guys {decrease} with the ship. {Way too many} of {you are feeling} like you {need to} hold. You don’t {need to} hold, and I wish {I possibly could} come through this computer or smartphone, however you’re watching it, and {let you know}, “{It is possible to} avoid this pain. {It is possible to} avoid this stress.” I was totally 100% wrong to be long on weed stock overnight. {You understand}, I got {just a little} unlucky with {the news headlines}, but that’s {what goes on}, you know. {Once you} hold overnight, there’s {the chance} of overnight news. So, in hindsight, {I will} {not need} chased, {I will} not have, {you understand}, felt guilty {really missing out}.
{That is} another thing, {you are feeling} guilty {passing up on} a hot sector. You have FOMO, {concern with} missing out. {Therefore}, I let my FOMO {reach} me, where I shouldn’t be {investing in a} $9 stock, I shouldn’t be {investing in a} stock like CBDS, {you understand}, that’s up that much. {Even though} {there is} no news, like, {I acquired} {a touch too} over-aggressive. So, {this can be a} good wake-up {demand} me, too. But, {regardless of the} wake-up call, despite being wrong, I lost {a cent} a share, because I manage my losses and I had {the proper} mentality {entering} this.
So {a great many other} people, CBDS, IMLFF, CANN, FFL, RMF, MSRT, POTN, CNBX, BUDS, BUDZ, NUGS, {most of these} pot stocks, I guarantee, have {way too many} investors…investors, {as though} they’re serious people…who are, {you understand}, {attempting to} ride the waves {plus they} think that {this is exactly what} the {currency markets} and penny stocks…you know, {this is actually the} price {to do} business, {you need to} ride the 20%, 30%, 40%, 50% intra-day losses, and that’s bullshit. {You merely} don’t. You’re {rendering it} more stressful, you’re {rendering it} harder than it {must} be, and you’re making, {you understand}, me and {very cheap stocks} look bad. It’s not…This {isn’t} penny stocking. {There is no need} to {have a} 30% or 50% loss. I can’t remember {the final} time I took a 30% or 50% loss.
{You understand}, I’ve been {excellent} at cutting losses. {I want to} actually see. Let’s see, {days gone by} year…So, I made roughly $250,000 {previously|during the past} year.** My biggest percent gains, ITKG, WLKR, SRAX…FFRMF, {this is} a 30% winner {last week}. PGSY, ENVV…Now let’s look {within my} biggest percent losses. {It is possible to} click this and {start to see the} losses. So, {this is} my biggest loss, shorting, obviously, because I suck at shorting. I lost…lately, in {the forex market}. I lost 13%, {that has been} my biggest loss, and {that has been} roughly {this past year}. Also, IHRT, {I acquired} {just a little} stubborn {with this}. This was {in my own} long-term newsletter, and I lost 13%, and I held this for, like, {fourteen days}. So, 13% is {just about|virtually} my max. INOD, {I acquired} long, lost 11%. So, that’s my max, {and also} that…these {come in} my longer-term newsletter. You don’t {need to} risk losing 11%. {In case you have|For those who have|When you have|Should you have} {a little} account, protect your account.
So, {in the event that you} understand the lesson in this video, please do say that. Leave a comment underneath this video saying, “{I’ll} protect”, three words. And, {in the event that you} keep that mentality {at heart} on {all of your} trades, {you’ll} protect, {and you also} don’t {need to} sit {by way of a} 50% loss on a junk play like NUGS. {Many thanks}, I’ll see you in the chat room.