I've known that this is Tim's most important rule since he frequently says this in his free Youtube videos but he explained the reasoning behind it very clearly.
A few other key points that I took notes on was that you should have a goal in mind and that this is a journey and that it will take time. Tim's process isn't a get rich quick scheme, it's more of a rinse and repeat type of deal (basically a $1k profit 1k times).
He pointed out that he and his top students win an average 60% to 75% of the time and that you will lose some trades, it's part of the business. Hence cutting losses quickly. Risk management is key.
You should never use a market order and should always use a limit order to ensure that you are getting a good entry/exit point vs paying what ever the feel like giving you (basically).
There is more that I took notes on but I'd hate to say too much. I will share what Tim said were a couple of his sweet spots for trades... NASDAQ / NASDAQ Small Caps, and tickers that are between $2 a share to $10 a share.
Update on swing trades:
Had 3 of my swings go green today with $TRIL hitting my 10% goal. The indicators are still showing a hold so I'm going to hold into tomorrow and see what they do.
$AVP -32.36%, short with a target of $3 to $3.50.
$RJET -9.02%, long, looking to exit as soon as ticker is traded again.
$SDRL +5.94%, short goal of 10-20%.$TRIL +10.30%, Long goal of 10-20%
$TWTR +0.46%, Long goal of 10-20%
Overall total on investment: -4.18%
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