5 Success Tips from 7-Figure Day Trader, Tim Grittani

chat with traders episode 10 the biggest secret of the best traders in the world is that they're just like everyone else however they've worked hard to learn the markets and discover what works and what doesn't but how can you hear about these journeys and get in on the strategies and tactics they use you can do it by listening to chat with traders here's your host Aaron Fifield hey what's up guys thanks for tuning in to another episode of chat with traders this time it is episode number 10 can you believe we're up to episode number 10 already these these weeks are just flying by it's nuts but let's let's talk about today's guest so today's guest is Tim returning and many of you may know him also by Kroy runner 89 that's his Twitter handle that he goes by and this guy is a very very talented intraday trader he originally started with roughly a three thousand dollar account and over the years he's transformed that into will over two million dollars and getting close to that three million dollar mark in just a few years so he originally sort of kicked things off in 2012 when he first ventured into the jungle of Penny Stocks after catching on to how these markets operated and really got an understanding of the manipulation that goes on he was able to master a few setups that um he could identify very well and obviously they paid him quite generously over and over again but eventually he hit a few limitations and now he's predominantly a short seller of NASDAQ stocks which makes for a very interesting segment during this interview what's also interesting is the five key factors that Tim contributes to the majority of his success to date and he really breaks down each one of those throughout this interview so definitely some great insights you'll pick up from you'll also hear about the events that led up to his gigantic single trade loss of two hundred and ninety thousand dollars during October last year this will definitely give you a great appreciation of just how bad things can get when you go against your trading rules because as you'll hear when the ongoing problem surfaced it got ugly very very quickly and just before we roll into this week's interview I'd like to remind you guys that the lucci method giveaway is still rolling on so we'll actually be wrapping that up this Sunday so that is the 8th of March at 7 p.m. EST and if you have missed it what that does include is a it's a it's a product offered by sang Lucci so these guys are selling this product at the moment for two thousand six hundred and ninety nine dollars that's actually what it retails for no made-up value and what that includes is an extensive online course taught by Lucci himself which has over 75 training modules you also get access to the same lucci chat room which is a great community plenty of traders of all different levels you also get access to the weekend sessions now the weekend sessions are really cool they're actually like a webinar that goes for about two hours every weekend and Lucchese actually running through his trades and any interesting tape movement that is spotted during the week and really sort of runs through all of that with you and it's also a good opportunity where you can hit them up with any questions you might have about your own trading included in that it is also a one-on-one session with Zack Hurwitz and this guy's just crazy when it comes to video app I think I might have mentioned that before actually so you'll get a one-on-one coaching session with him for about now and I'm actually got him on the show next week so look forward to that one guys also you'll get access to a truckload of videos like hours and hours of footage that the guys at sangwich you have put together so so much packed into this this giveaway so make sure you enter head over to chat with traders comm board / giveaway and it's all pretty self-explanatory alright guys let's roll into this week's interview and I hope you enjoy it tim has a go man good how are you good good how's training going for you in the first few weeks 2015 I've been pretty good for the most part I had really hot stark alive week and then kind of just fell into some dumb mistakes when I'm concentrating at the end of it and give it back but I felt start - this week I'm building a backpack it no ice no ice good to hear man so um let's just jump right into it ice so um what sparked your interest in the stock market back in 2011 when you sort of first got started um I guess it was that I was a finance major and I had gotten most of the way through my major at Marquette and I was already going a semester long in school because I had transferred schools midway through and kind of got most of the way through the major and figured out I didn't like a whole lot about finance or there wasn't a whole lot I felt like I could do with it that would be interesting to me so what I did was I kind of thought and thought about and was like well I'm gonna stick with this major which you know was the goal one thing for the one area that interests me the most is the stock market and I think I was kind of drawn to that just because of the idea of you know take money and turn it into more money I kind of been into like the whole poker scene and betting sports a little bit and stuff like that before so it was kind of like along the lines with some of the like the more risk-averse stuff I did enjoy beforehand but this was just you know a bit more legitimate and so yeah I got into studying stocks because I kind of figured okay I'm gonna come out of school and be looking for interviews for some kind of training job I should I should try to have some idea of what I'm talking about and maybe have a little experience on my own okay sure so just before we move on there hedge go with them with your poker experience did you have much luck there um I think it you know was one of those things where there was some beginner's luck um I've been playing since I was in high school really and yeah I guess first couple of summers I did pretty well and then after that really not that much success and you know I never made any kind of serious money off of it I enjoyed it I enjoyed the game greatly I really did that my mother so you still playing your spare time right oh yeah yeah playing her in there mostly just like 3po great bars or stuff like that now though ya know us so I sort of take it that what you're learning in your degree didn't really sort of teach you how to trade the markets no I really didn't yeah so what were the first sort of steps that you took once you decided that the stock market was sort of something you wanted to look into a bit more uh well I guess the first thing I did was I just I wanted to open a trading account and just trade on my own a little bit to sort of see what I could pick up along the way and so I I think I funded some broker called cher builder or something like that I was just some small broker that really it wasn't all that great for anything in particular I think I project the first one I found and I you know I just really randomly trading and that was about it I had taken part in this class activity back in high school that I remembered where it was everybody in this economics class I think it was I basically had a virtual trading account and there was a semester-long competition for whoever had the most in their account at the end of semester would win and so I mean I don't remember doing all that well on that but it was just something that I had kind of found fun and interesting along the way and back then I was kind of randomly buying and selling so I think I just kind of wanted to go in with the same strategy where it's just you know practice executing trades that see if I can make a little money and it really was just kind of the night.the naive idea of it oh I can just buy this you know 30 cents stock and within a couple weeks I'll try to sell it for 10 percent Dan or 20 percent game and just that easy and a couple within a couple weeks I lost half my account and had to kind of take a step back and stop trading and reassess what I was doing okay sure yeah it's funny you mention that actually I interviewed Matthew Matthew Owens Triforce trader and I had a similar story about trading in in high school and a class he had there and told me he he won the competition by just loading up on shares an apple and it came out came out on top at the end of the semester Wow so I've heard you say that the first six months were were quite a struggle for you so what was some of the things that you really sort of struggled with during that time um well I guess the first six months I actually traded I was I was a member with Timothy Sykes I was on his Penny's tacking silver package and I had spent a few months watching video lessons and paper trading a little bit and trying to get comfortable but then once I go in and actually started trading for real um it was it was a combination of factors one being that there was so much emotion for me at least those first few months tied into entering a trade and just the you know the fear of having money on the line and it was it was really different to experience it like that compared to when I had just been paper trading because when your paper trading its easiest thing in the world but when you're when your mind is clouded by those emotions and having money on the line you're not thinking as rationally you're not making smart decisions and so I had a lot of trouble with that and then also I was trying to still widely follow trade alerts at the same time I was trading my own ideas a little bit but any time I saw a trade alert by a guru that I was following I wanted to jump in and try to do the exact same trade of them because you know again by my kind of naive thinking it was oh well they're a guru they know what they're doing so I should just follow them and I'll make money too and it really wasn't practical because I just couldn't match entries and exits yeah so what would you say to someone who is following site gurus so-called gurus sort of alerts how should they be trading them instead of trying to follow them into each trade I mean what I would recommend doing is just learn the reasoning behind the trade I don't think I mean other than maybe trying if the Guru has a big following and you know they're alert can move the market maybe you can try to scalp a long based off of that but that's about all I would do with it otherwise you mean the whole idea for me and kind of what helps turn me around a little bit was starting to focus more on the why behind the trade and the thought process and then I could learn to do it on my own with other setups hmm ya know I think that's that's really important that last but you said that so you also mention there the the emotion side of it you sort of struggled with a little bit so what sort of things did you do to overcome your emotions or at least sort of keep a cap on them um well one of the first things I did that I noticed made a big difference and it it probably took me about four or five months to do this and that was around when I started to turn things around um I hit my unrealized profit loss column on my broker's because I kind of realized that I'd be sitting there in a trade and I'd see oh I'm up 100 bucks or one down a hundred bucks and just having that number staring me in the face that would that would kind of feed the emotional side a little bit and I'd get you too scared of losing a profit or scared that you know my loss is going to get worse or whatever but I start thinking about the money instead of the trade and about the set up and really a do side of why I was in the trade in the first place and I would really just close trades out randomly based off of the money rather than off of you know what I thought was going to happen based off of the chart and so once I once I hid that it was I mean I still I still kind of knew in the back of my mind how the trade was going and if I was up or down and a general idea of how much but just to not see it in front of me constantly made a huge difference and I noticed that really got the emotional side of it down for me okay so by hiding that sort of the P&L column you could just really focus in on the UM on the price action and sort of stick to your plan a little bit more right right yeah cool so if obviously for a day trade full-time now so at at what sort of stage did you feel confident that you know that was that was going to be it and you were going to trade full-time I'd say it was about six months into training right around that time where I I had another six months of struggles I had dug myself into about a $1,300 hole my accounts I was and I mean them that was a lot of money for me at the time but it wasn't an insurmountable amount by any means I had worked a summer job and made three times that so it wasn't like it was an unrecoverable sum so I I took me a couple months dig out of that hole and then in November 2011 I got back to the break-even mark and then hit my first big trade which was buying a promotion early and selling it ten minutes later into a huge spike and made about $2,000 on that and once I got past that break-even point and I'd seen a couple of consistent months of results and I felt really comfortable that I knew what I was doing finally that was kind of my moment where I said you know I'm graduating a month but I don't I don't want to get a job right out of college I want to give this more time I want to keep trading full-time and really see if I can turn this into something yeah awesome select six months period I mean that's really not very long at all so how do you think you were able to sort of pick it up so quickly oh well I think that three months of preparation time before I started trading was very helpful to me um I mean I still made a lot of mistakes during that six months that I started trading but I think that I made far fewer because I did have a little bit of you know a background and at that point I guess like I I wasn't just diving in blind on day one I had had a little preparation time to learn some of the ins and outs um but really I kind of just remember along the way especially you know I feel like it was like a solid month in there where every single day I just felt like I was learning something new or making a new mistake or just like figuring out something I could improve upon and it really was just I was very I was very self-reflective about what I was doing and trying to take away from every single day any improvements that could okay so will you maybe like writing these down recording them I know you've got a blog now but we use sort of writing about it or journaling this and anyway when you were so starting up um the only journal I really kept was like I guess one of the big turning points for me was I decided I wanted to focus in on just a couple of setups because early on I had traded a lot of different setups and was having very mixed results so I chose to focus in on what I was good at which was over-the-counter stocks the pump and dumps and it was buying promotions early and then it was buying multi-week breakouts or 52-week breakouts or something like that on a daily chart like big time daily chart breaks and so I wouldn't so much journal like my emotions and stuff like that or just like little lessons but I could start tracking those setups and putting them into a spreadsheet and this sort of keeping tabs on how they performed and what typical returns look like and just you know having some idea of past performance so that when the next one came along I could try to put my plan together a little bit better okay Co so let's dive into that a little bit more and just talk a little bit more about your actual trading style so I know these days you're right into your nasdaq listed equities but um I'm really keen to get into that also but before we do I mean you obviously started out playing penny stocks and the OTC markets so what was it that really attracted you to these particular types of stocks well it was partially you know after I'd had a lot of experience and I'd tried trading you know the listed stocks that are earnings winners and and I tried pretty much everything and I would get really frustrated with some of the listed stocks because I'd be I'd be trading I set up it looks great I'd be buying a stock breaking to the new high a day and then something like the overall markets would dip and the breakout on my stock would because the overall markets dragged it down or they were just there were just so many more factors it seemed like with influences more expensive stocks and it really was frustrating today so in watching the OTC stocks they kind of traded in a world of their own and they didn't tend to follow the overall market at least from what I could tell it was it was just more about who was promoting it how effective the promoter is and uh really it was just purely based off of technical analysis because these were companies that have no fundamentals whatsoever and everybody knew that eventually they're going to zero but the question is you know the people who are manipulating and controlling it how far they're going to let it run first and so the only the only way to really play off of that and figure out what people's like what their intentions might be was just to try to anticipate the chart patterns and learn you know which patterns repeating themselves okay so you mentioned in there about promoters can you just give us sort of a brief rundown on how these sort of promoters work yeah absolutely so I guess the best way to put it is especially with some of these big-time promoters the guys who are really running some huge plays back then what they would do is basically they would create a company scratch and all of the free training shares for this company would be inside our own so they could control at what pace they sold their shares and you know whether they're gonna drive to pick into the ground or if they're going to support it and keep the stock moving up but basically they were they're taking these stocks that were very easy to manipulate they had millions and millions of dollars so they're completely in control of the action so it was really more of a game of trying to follow what is the big money doing and so they would come out with a new pick and you know send out an email blast to all their subscribers they would have these email newsletters with thousands and thousands of subscribers and say our new pick is XYZ or whatever and then usually what you would see is a really big strong spike on day 1 of the promotion mostly time ending the day up 50% or more and then after that was just a question of whether they were going to turn it into a multi week promotion or not that really again was just you could predict that based off of the chart patterns and how they were controlling it okay so once you sort of saw these things could you give us bit of an overview on how you might have traded that or if you weren't trading that what you were looking for like what setups you're watching for when you're trading these OTC stocks yeah okay so um I mean the two big ones for me early to kind of turn me around like I said new promotion releases and the idea behind that was as these promoters with every successful pic they put out more and more people became aware of and more and more people wanted to play the next one because the idea was oh wow the last one went up a thousand percent well this next one should be great too so I really tried hard early on to make sure I was one of the first people to get an email so that that came down to knowing all of the connected promoter websites signing up to multiple email addresses and basically as soon as they sent out an email and said you know this is our new pic I was by and I was trying to get in as quickly as I could and to beat that Russian people who wanted to get in and I mentioned earlier my first big win was a stock that spiked huge in about ten minutes I think that was a 70% win in about a 10 minute window because I was one of the first people to get fills because I just I got my email set up in an efficient way that I was getting the emails quickly so anytime a new promotion got released by one of these guys who had a you know a good reputation I guess you could put it I was trying to get in quick and then beyond that you would just sort of be a matter of letting the chart develop so after you know after a few up days or maybe a week or two a promotion I'd look and I'd say okay what is the height of the promotion have reached so far since this stock started getting pumped and if that high sort of if it started to break past that high and reach new all-time promotion highs that was that was a breakout the daily chart and that was another setup that I really liked and I would buy it as the stock was breaking those new highs in anticipation of it having another up day or two or three and really running and squeezing okay so you talked about getting an early they're pretty much like as soon as you got the email were you just diving right in or were you sort of waiting for a confirmation that something was going to come out of this no I really want to dive right in because the email was the confirmation okay because one once I get that email I mean everybody else who signed up that email list is going to get it as well and because these guys I mean that's why promoter history was really important to me I wouldn't do that with just any random promoter it was the fact though that these guys had put out you know a few good promotions in a row and all of these it really was just a very predictable spike where you get 10 15 20 minutes of just straight-up spiking action because everybody's trying to get a fill and time to get in early because they think this is the next big promotion okay and how legitimate are these promotions like is is what they're doing there is that it's this sort of a legal operation they're running there um that that's kind of tricky to answer I mean I'd say because there's a lot of very fine lines they so um I mean technically promoting is not illegal I think what the legal is if you're promoting a stock and you're selling shares without disclosing that you have those shares to sell or it's a very fine line and I'm not really clear on a distinction but um but basically as far as legitimacy goes these were all worthless company and I think pretty much every single one I've ever trade it is probably sub penny levels now or very close to zero um so I mean these these were just you know some I mean if this was you know just proto trying to do people and trying to take that money that really is all it was yeah okay so last year you sort of started leaning towards the nasdaq listed stocks I mean it was clear that you're already having great success and making really good money trading penny stocks so what influenced the change there um well a couple things one is that Nasdaq's are a bit more scalable um with the OTC market one thing I learned along the way is that the volume and liquidity is very very important to being able to enter and exit trades and so I mean a lot of these a lot of patterns even though they repeat even though they're predictable there's just simply not enough volume traded than them to be able to take very large position sizes um with Nasdaq's the volume and liquidity is much much higher so I think there's more opportunity there in that sense and I was kind of interested in it for a while because of that but I was kind of forced over there a little bit sooner than I had planned on and that was because first the SEC started to crack down on some of these promotions in the OTC market and you started to see some of these plays get halted and when an OTC promotion would get halted it would reopen two weeks later and most of the time it would be down 50 percent or more the price it was halted at so that scared a lot of people away from the OTC market because nobody wants to lady stock halted at any minute and that really dried up the volume and liquidity over there a lot of the major promoters that I had been playing for those first couple of years um you know I mean either the people who are running them down rested or the site got shut down but basically most of the major promoters went away and so the OTC market aside from a lot of the crappy marijuana stocks running the first three months for 2014 really has not had much activity in the past year okay so when you did start trading these NASDAQ stocks did you bring the same approach with you or did you have to make a few changes to adapt it was it was a similar idea I I was trading at that point I was mostly a short seller I'd gotten away from buying somebody promotions a little bit and more towards short selling them once they had really spiked a lot continued like they were overextended to me so I took that same sort of approach over to these NASDAQ stocks because I felt like I would see it a lot on those as well where you'd have know maybe some good news get a stock or good earnings or something like that and for a few days the stock would just go vertical it would you know maybe go from $2 to $5 or something like that and then it wouldn't collapse as fast as an OTC promotion would but a lot of times you would just sort of if you look back on some of the old ones or the old spikes you would see that over the course the next month or two it just slowly faded back to where it had come from so it was pretty much the exact same pumpkin dome pattern as I had seen on OTC stocks so that led me to believe you know okay it's happening to a degree with some of these listed stocks as well but I I did have to adjust titrated a bit I had to start looking for a smaller profit window because again I wouldn't I wouldn't pull the short for a month or two it was yeah I would try to trade a couple days and the stock was the most volatile and the most liquid and then just move on to the next one okay so one of the big changes would be that you were sort of holding for slightly longer even though it wasn't a month you might sort of hold it overnight um sometimes I would go overnight with teas um although usually if I did it was because I'd gotten stubborn with a bad entry but um no I think it was just more they you know I would know if I if I shorted an OTC that went from $2 to $5 I would expect you know a 50% gain and probably a day or two with these listed stocks I wouldn't have that wide of a profit window because like I mentioned they came down a lot slower I noticed so I really be looking for are like 5% 10% or 15% I'd try to find the predictable part of the move where I could take my piece you know the easy profits and then just leave it alone after that okay yeah no that makes sense so here's something I want to ask you and that is a lot of traders will say that you need to have an edge to succeed as a trader right so how would you define your edge um my edge I think is really just that I understand chart patterns or at least I feel like I do um and I have you know basically I called a list of setups where if I if I see a certain pattern forming I immediately know what to do because I've seen that pattern time and time and time again so as I've as I've gone on I guess my my edges experience I guess you could say that now I get a better idea of what to look for yeah but I guess that also comes from the fact that I am able to recognize chart patterns and recognize which ones are predictable and noopy yeah so just so again really good at picking a sort of particular or specific chart patterns that you recognize and you know time and time again I've proved that this is generally what follows if you sort of see that setup come together right um yeah right so as a day trader I mean you're pretty well connected to the market while it's open but I'm keen to know how much time would you say you spend researching and studying the market after ríos um I usually it usually fluctuates a bit um if I if I met a point where I'm know I'm comfortable and I'm trading only setups that I'm familiar with and have been doing for a while really the only time I'm putting in after-market hours is just to put together a watchlist for the following day and that takes me maybe 15 minutes a night um now if it's me trying to learn a new setup or trying to improve a new area market then the time goes up a bit because then I'm usually putting data in spreadsheets or saving charts and studying charts or just doing a little bit of extra after-hours work trying to you know familiar familiarize myself with that next setup that I'm trying to move on to and then I'd say you know it's more like an hour or two hours a day after market ok cope um now now here's one thing I wanted wanted to speak to you about I hope it's not too much of a touchy subject but um October last year you took a warping big loss on no doubt I think was about two hundred and seventy thousand on 280 290 okay um trading like when the bowler stocks were really hot and they were all sort of surging but I mean in relation to your trading capital it wasn't crippling but nobody could say that it isn't a huge amount of money to lose so I wanted to hit you up about it because there's definitely lessons in there for everyone so oh sorry now tell us what went wrong and what were the tough lessons that you walked away from this one with uh well what went wrong it was it was really a all mostly year-long problem that just had taken that long to surface and it was that I was refusing to cut losses I had transitioned over into these NASDAQ stocks and my I think it was I guess May of 2014 that I transitioned over so I've been trading them for about five months at this point and I'd always kind of had the attitude with these that they're a lot choppier and there's a lot more fake outs and I just you know they were a little trickier than the OTC and a habit that I'd gotten into mainly short selling these big runners was if I miss time by entry I was just gonna hold and you know let it squeeze me and looked up look to add higher and you know that that would be fine and so I started doing this in May or June I think and every now and then I get stuck in a snubber trade and then it would squeeze me and I'd be down $10,000 or $20,000 but it always ended where it would come back in my favor and take off for either a small gain or small loss or breakeven and basically just it worked out okay every single time and so by the time Lake came around I I took my entry in like a short side and I think it was probably about 990 or so that I entered my short at and I had a small gain on it some kind of press release came out midday and spiked the stock a bit and I was pissed that I couldn't cover my position for a game like I had maybe a three thousand dollar gain on it and I watched that disappear and I was ticked off so I just figured okay screw it I'm gonna hold it till it comes back down and fades again and then it just started it started breaking out it started going to new highs and because I conditioned myself with that bad habit about cutting losses yeah I was I was getting squeezed and I was really uncomfortable and I was bound on realized a pretty ugly amount of money but I just kind of figured it would end like every other one where I would either add higher and get my average up or it would just nobody squeeze for a day and fade back off and I'd be fine but this one it didn't work like that and I I made the mistake of adding too early to my position and then getting stubborn on my ads as well and really it was it's a snowball effect where I took a bad situation and I kept making it worse and worse worse because I just I couldn't let go of my short bias and I couldn't admit that I was wrong and take you know what would have been a very manageable loss and instead before I knew it I was down this huge sum of money and it really was mentally tough to deal with in the trade and then the days following so what was some of the lessons that you took away from that like was this something you made like a mental notice of like I will never do this again sort of thing yeah yeah I taught me that I had to cut losses and um the big one the big one for that one was that it is that I helped through as it was breaking out to new all-time highs um or I guess all time in a sense of since it started trading with volume when all the Ebola needs to start coming up I kind I kind of looked at that is like a period of the pump I guess you would put it okay and and so you know the height had gotten too in the previous three four five days or whatever um when I was first starting to short it was somewhere in the ten dollar range and so once it started to break past that I should have been done and should have been out and respected that it could go higher so that was that was my lesson my never again lesson is I'm never gonna let myself go on all these rides like I did over the summer where I'm just holding through big on realized losses and trusting that it will come back down and everything will be okay it taught it you know it retaught me that I have to cut losses and I have to respect the trend yeah yeah good one so you actually do really awesome write-up about that on your blog so I'll make sure that I am put a link to that in the show notes per area that I know that's a lot more detailed and I can get into over this yeah yes so listeners definitely make sure you check that one out awesome writer so let's get a little bit more advice for sort of traders because I know you did a presentation towards the end of last year in Las Vegas and you spoke a lot about sort of advice for entry-level traders and sort of on the subject so at the presentation you gave out five factors that you sort of linked very closely to your success so I know we don't have you know an hour two hours to go through them and depth but would you be able to briefly run us through each one of those five factors and what's so important to get each one right for sure yeah um the first factor was having read brokers and I think that is one of the most key things you need the right broker for your trading strategy you need to know what your broker's strengths and weaknesses are um just an example of that I've been talking to a trader recently I was talking earlier hear about how buying new promotions on the OTC market was a huge strategy of mine early I'm building my account and for that you needed a broker that would get you good OTC executions and the best broker for that was speed trader at the time and I - probably still are now and so I made sure that I had speechwriter because I wanted you know if I wanted to buy promotions I needed to have the best tool for it and it drives me crazy because some traders like I remember talking to a trader who was trying to buy OTC stocks with a broker where it would take him five minutes to get an execution on one of his orders and I was saying to him like you know even you know even if you have a stoploss level in mind with your position here if you are trying to get out of this trade when things are going bad like if you know your support level breaks down and you want sell you're not going to get that fill like you you might only want to risk you know two cents a share but you probably will wind up filling at the bottom of the panic because your brokerage is not equipped to sell you in a timely manner so it's really just the broker is your main tool for executing your trades so you need to make sure that you're using one that you know it's what you need um the second key to success was focused only on liquid and bottle stocks and I mean I guess that's not for everybody because I do know some traders who are successful trading lower flow plays or lower volume plays but for me it was very important for anything I trade to be liquid and volatile because I need the volatility in order to actually make meaningful turns and then as far as the quiddity goes or good volume I just I found that I'm far more comfortable and it's far easier to trade size and far easier to get fills on your entries and exits I portrayed as going for you or against you awesome so so let's demonstrate that number three was identify and focus on your niche and what I mean by that is my my big turning point I think as a trader is when I cut down the number I set ups I was trying to trade I went from trying to do everything to just trading those two OTC setups that I was comfortable with and I poured all of my focus and all my attention into those I stopped trying to follow guru allure to stop you know doing random earnings letting plays I was just looking at the OT C's and just looking at the new promotions and at the breakups and that focus on what I knew that I was comfortable with what I knew I what I was good at um that really made a meaningful difference to my accounts because I started to see far more consistent results that's how I built back to break-even that's how I started to you know build up my account a little bit and be profitable and then once you feel like you've really mastered those and understand those you can always branch out from there but when you're fresh getting started and you're first figuring out who you are as a trader don't try to do too much it's okay if you miss you know this huge short sale that everybody else is beating their chests about and saying oh yeah I killed it if you're not if you're not a short seller um no if you're always going to miss stuff in the market no matter who you are no matter what setup - like you're gonna miss things and that's fine um what you need to do though is you need to figure out where you succeed and just focus there and make sure that those are the ones that you profit on all right and number four would you go there number four was don't believe the hype trade charts and price action alone and that one was uh you know that's also pretty key to my success because I I feel especially now with these listed stocks I think you know everybody kind of knows okay okay stocks are usually garbage but with listed stocks the fact that they're on major exchanges I think everybody kind of gives them a little bit added of a degree of legitimacy and will just assume like oh well this company put out news so that's not got to be great for that that means it's going to go up and yeah maybe it goes up for a little bit but when that chart momentum turns and it starts coming back down far too many people just hold and hope and say and still think oh well that news means that it's got to go up it's got to keep going and I mean that really goes for both sides of the play because also I mean that's exactly what I did with was I ignored what the chart was telling me I ignored that was breaking out I just was so latched on to my short bias because I thought that the company was garbage so whether you know whether it's good bias towards the company or a bad bias towards the company it really doesn't matter all that matters is what the market is telling you and that's best that's best deciphered through charts absolutely no completely agree with that one so fifth and final what's that one there that's cut losses intelligently and I kind of specify they're not necessarily quickly and it's really funny because I did talk about this in Vegas and this was probably a week before my lake loss happen and you know looking back on it now I still I still agree with that to a degree um you should cut losses intelligently for me in intelligence box cut on lake would have been when it was breaking new all-time high that would have been the intelligent move because I would have respected that it was a breakout um now what I think I meant more by that with cut loss is intelligently not necessarily quickly is a lot of people will have preconceived numbers in their mind like I don't want to lose more than 1% per trade or I don't want to lose more than 3% per trade and you know if their stop-loss gets hit they're out and what I mean when I say cut loss is intelligently is don't don't base it off of some preconceived number necessarily with an active dollar amount or a percentage figure I like to base it off of the chart so basically if there's if there's a you know a huge support level on a stock it's 5% away from my entry I don't want to be cutting my loss at 2% when really the chart never broke down and there was no real reason to get out other than I hit some frequency number in my head I want to be trading off of the action and off of the chart in front of okay so you can still predetermine where your stops going to be when you enter a trade right so by looking at the chart and the price action previous to where you enter what you're saying is you can still put your you stop loss on as you enter the trade but don't have like a hard and fast rule like it's going to be this far behind my entry right exactly um I mean this is how I think about risk so let's say you've got a stock that has a huge support level at $1 per share um if I mean if I enter that stock it a dollar ten that means I'm risking 10 cents a share or ten percent now that's you know ten percents a pretty big percentage loss to take so I would figure out my risk based off of how much size am I going to take so if I'm taking that dollar ten entry risking off of one dollar and that's ten percent I probably don't want to be playing large size or probably don't want to be all it I'd probably play smaller size because I'm using a wider stop-loss um but if I if I get in at dollar o3 and I'm only risking three cents a share or three percent then maybe I'm willing to size up a little bit more so I think in terms that I guess dollar risk and what it means my account but I would use the same stuff in both situations there's the question of how much would I size in based off of how far away from that level am i exactly yet that makes sense so um all right similar so it brings us close to the end of the interview and it's it's been really good so thanks so much for coming on absolutely but um let's take it to the closing bills so just a few questions that we asked all the guests and the first one would be what's the best piece of advice you've ever received um I'm not sure was wrecked personally it made the best I've seen is uh from Nate or investors live and his little phrase trade to the ticker and not the company and that goes along that I was talking about earlier where you I want my trading decisions to be based off of what the chart is telling me what price action is telling me not some kind of preconceived notions about how good or bad the company is based off of news or fundamentals or whatever other factors Yakko I like that I really want that one so um what is the number one trading resource you couldn't live without today I think it would have to be market scanners for me right now I'm using stocks to trade but I've also used equity feed or Interactive Brokers scanner on their platform um but I think I think a market scanner is really key to what I do now because that should - my place I I will punch in my criteria of what I'm looking for usually usually it's just top percent gainers that have certain volume requirements I look for the ones that have traded I'd say at least probably 5 million dollars in the day for listed stocks and um I mean half of these I'd probably never even know about if I wasn't using my scanner at the end of the day and running through these plays and then pulling up charts there's not a wedding lines yeah coach let's say create your watchlist for the following day wrong yeah almost entirely spannabis awesome so I know you're not a huge reader on books and that sort of thing but is there any one book you believe is a must read for any trader just starting in uh no there really isn't because I really haven't read many trading books um actually I don't think I've really read any so um you know one thing one thing I do want to check out this year as I continue trying to improve a little bit I wanna I want to get into some trading psychology books so I think I think that's the most useful area if you're going to read books on trading is don't don't worry so much about a book it's trying to give you the holy grail of all trading systems but maybe worry more about you know the books that will help you you know you psychologically write while you train and maybe learn to control those emotions better you know stuff that is a little more practical and useful okay cool that's probably a really good answer better than a specific book so yeah thank you for that knowing everything you do now is there anything you would have done differently come day one again oh definitely yeah um I mean I would have I would have absolutely go VIN without trying to follow alerts that's the first thing I would have never wasted my time trying to follow trade alert chime mimic people's trades I would have focused a lot more to kind of what I was doing and tried to you know I think that's how you build confidence as a trader is you make your own trade you make your own mistakes yeah you're gonna take losses along the way but then you learn from those losses so I wish I kind of gotten started with that a little bit sooner with the you know being a little bit more self reflective and saying okay well I just lost on this setup why did I lose what did I do wrong um or what did i do right you know if I was just cutting a loss on a setup it just didn't work but the other thing is I wish I had been a lot more mindful about volleying and liquidity because one of my earliest losses that I can remember like my first big loss I took was because I was trying to trade a very thinly traded stock with the same rules that I had been applying to some stocks that traded with more money and I didn't really understand the difference and I took a huge loss as a result because the bottom dropped out of this one so much quicker than it did on any of the others because there just wasn't volume there to support okay awesome points that's that's that's really good so that brings us to the end of the interview Tim so thanks so much for coming on yeah it's it's been awesome so before we wrap things up do you just want to share with the listeners where they can find out more about you and connect oh sorry yeah well my blog that mentioned earlier is trade the ticker dot blog spot.com and I've put a lot of posts on there that I try to geared towards beginners and helping people along and get started and then also I have a Twitter I believe it's at Troy runner 89 I believe by the 89 there yeah I do at 489 is my Twitter so I'm on there I'm somewhat active here and there um oh yeah those are the best places to look for me okay awesome and all the links and every everything mentioned in the show will be on the show notes at chat with traders comm so definitely make sure you check out Tim s blog for some autumn awesome posts on there and yeah printed up plenty to learn so thanks like ten and we'll speak soon all right good thank you okay now that brings us to the end of this week's episode so I hope you guys found some value inside of that interview Timms are very switched on guy as you can tell and doing a great job doing a very very great job so just a quick reminder the lucha method giveaway is wrapping up this weekend on sunday at 7 p.m. EST so guys make sure you're in that it's a massive prize just go to chat with traders comm ford slash giveaway all the details there all you got to do is just answer a very very simple multi choice question and putting your email address and that's it you're in if you want to increase your chances of winning you'll be given a unique URL take that you are in a URL and just sort of share it around anyone who enters through that URL you score another ten entries so very easy to dramatically increase your chances of winning - all right well I look forward to speaking with some of you throughout the week and new episode coming same time next week take care you've come to the end of this episode of chat with traders but don't worry more great episodes are on the way to stay updated with each great new episode be sure to subscribe to the podcast in iTunes and we'd love it if you leave us a rating and review we'll see you next time on chat with traders you you you

Channel: Chat With Traders

Views: 293,477

Keywords: Tim Grittani, Aaron Fifield, Chat With Traders, Podcast, Interview, Day Trading, Day Trader, Penny Stocks, Pump and Dump, OTC Markets, OTC Stocks, NASDAQ, NYSE, Stock Trader, Stock Trading, Swing Trading, Tim Sykes, Timothy Sykes, Kroyrunner89, Millionaire, Success, Wealth, Motivation, Trading Strategy, Technical Analysis, Fundamental Analysis, Trader (Profession)

Id: EuYE4EB5wGE

Length: 52min 48sec (3168 seconds)

Published: Thu Sep 24 2015