Sorry I haven't posted an overview of video 9 for Tim's "How to Make Millions", I've been focusing on my trades and honestly there are a few things in my life that may force me to switch from working and trading on the side to just trading full time... even though I don't think I'm 100% ready yet.
At some point I'll go in depth on my family's money issues. We all have challenges in life and the last few years have really made it clear that I need to get going on pushing towards financial freedom. The longer you wait the harder it becomes. Plus life is short and I want to provide my family with the best life possible.
Anyways, back to the video overview:
As with videos 1 through 8, 9 mentions several times that you need to cut losses quickly. Remember, Tim and his most successful students only win 60% to 70% of the time. That means those losses must be managed because if you are loosing big 30% or 40% you're going to cancel out your wins or worse, you're going to stay in the red and slowly bleed out your capital.
- Keep it simple. Tim trades with a laptop and smart phone. You don't need the bells and whistles with twenty screens.
- Tim stays 100% cash most of the time.
- Always looking for trades but not falling for FOMO. He treats it like he's a retired trader.
- Focus on one trade at a time, aiming to make a few hundred or thousand at a time.
- Trading is not like a salary, it is opportunistic in nature so look as profits over time.
- If the breakout is weak or doesn't happen get out.
- If the breakdown is weak or doesn't happen when shorting, get out.
- Be able to trade long or short, it doubles the opportunities
- Focus on netting the meat of the move, no perfect trades
- Always look for the big percent gainers, 1day, 3day, 5day, 2-4weeks
- Avoid non-volatile stock that have dropped 20% to 50% as they are too unpredictable.
- Look for solid news catalyst and solid chart. With both in place your risk is reduced.
- Plan and look for risk reward, not the total profits.
- Stick to your plans and focus on the overall goals
- No leverage or taking too long of swings
- Don't try and force trades to match your schedule
- Slowly build your account.
- Look to make $1k to $2k average per trade and rinse and repeat.
- Never force trades
- Ignore long-term investments and make your money work harder for you.
- You don't have to short, but you should learn about it and how shorters see the market
- Take it one trade at a time, don't get overly emotional and remember that this is a journey.
You'll notice that Tim tends to repeat certain concepts throughout the videos, blogs, twitter posts, youtube etc... Cut losses, don't force the trades, educate yourself, its a journey.
I'm working on taking notes on video 10 and will post the overview soon.
In the meantime please feel free to follow me on:
Profit.ly @paperaccount and @Alleywolf