10 Easy Steps to Consistent Trading

– These are the type of things that you need to know by your numbers, because it becomes very obvious
when you have accurate data which area to pursue and
which lane you want to take. (energetic music) All right, quickest path to profitability. These are things that I would
do if I was beginning now or if I was struggling right now, using what I know now to
become profitable quicker, to learn things a lot quicker
and to have some more focus. So the first thing I’d do, I’d begin studying the materials and getting an understanding
of all trading vernacular for at least two months. The timeframes here are gonna
be completely situational whether you have a family, a
full-time job, or in college. How much time can you commit to this? You know yourself better than anyone and while you’re going through this, experiment, ’cause I do these
for myself all the time. You’ll know whether or not you need to add more time to things. You’re gonna watch every
DVD and video lesson you could find. And pay attention to what
patterns make sense to me. You know this firsthand, when you watch a DVD, a video lesson, whether or not you have the
basic understanding for it. There are some many times
you have to watch a DVD, five times before you can even
understand the basics of it. Those are not the strategies
you want to implore because you already are trying so hard just to understand the basics of it. Go to the strategies that
you watch the first time, you say, “Wow, I could
see myself doing that. “Oh, that time of day works for me. “Oh, that strategy fits who I
am, how long I want to hold.” Those are the types of
strategies you need to stick to and begin to focus on. And after I’d spent that
time studying, not trading, maybe paying attention to
the market a little bit, I would build a database of
everything that made sense to me and I’d pick the three to five
setups that make sense to me and I would begin trading
them for one to three months. Again, depending on how
often I could trade. And then I would begin to
track every single trade by specific setup,
potential risk-reward, P&L, time of day, day of
week, market condition, long or short, OTC or listed. You want to get down any
piece of information. You get down on a piece of paper and it needs to be accurate. That’s why I capitalize Specific setup. If you’re trading everything, you have vague criteria for your patterns, then your spreadsheets are
gonna be completely inaccurate. And this goes along with
keeping a detailed journal of each day along with
trades where you broke rules, cut before risk, deviated from plan. You want your stats to
be completely accurate. So if I have, I’m trading on OTC
breakouts as one of my three to five strategies and there’s
a stock I traded that day where I entered where I was supposed to. I had a risk level, I
cut before the risk level for a small loss breaking my rules and the stock went on to work out. In your notes, on you P&L spreadsheet, it’s gonna show a loss
there when all reality had you stuck to your plan, they would’ve been a win,
it would’ve been a gain. So you have inaccurate numbers. You need to have a detailed
journal of every time you broke the rules. Every time you deviated from the setup. Did you not play it correctly? Did you chase? Did you have a bigger loss
than you we’re supposed to because you didn’t cut a loss? These are information and it
sounds like a lot of stuff but you cannot be lazy in the beginning. The quickest path for you
to getting profitability is putting in more work than anyone else. And these are the things you need to do. The next thing I’m gonna
do is go over those numbers on a month-to-month basis. I used to call this ‘edge finding.’ I’d go over my numbers for the month and I’d find out what’s
working, what’s not working. You’re gonna write down a
total P&L for each strategy. Time of day, day of week,
swings versus day trades, long or short, OTC listed, once again, ’cause you’re looking for information. You want to know where am I making money? Where am I losing money? You’re gonna come up
with an average winner versus average loser for each category. You’re looking for setups
where your average winner is much bigger, and exponentially bigger, than your average loser. I was doing this with my dad who I’ve been helping
to learn how to trade. We did this a few weeks ago. He had like five months of information in, he was playing like four setups. And he kept saying, “OTC
breakouts don’t work for me, “they just don’t work for me. “I never win at ’em, I
don’t make any money. “I want to play these
other strategies more. “I feel like I’m doing
better on these ones.” And on all three of the
setups that he liked better, he had a one-to-one average
winner to average loser or a negative. On OTC breakouts, he had four times as big as
a win as his average loser. Yet he consciously thought
that he was not making money at that and not doing well at that. These are the types of
things that you need to know by your numbers because
it becomes very obvious when you have accurate
data which area to pursue and which lane you want to take. So once you come up with
those numbers and you say, “Okay, so these are the two
patterns that work for me. “I’m consistently
profitable at these setups.” Now comes probably the
hardest part: discipline. You are going to cut everything
out that you’ve traded that has consistently lost you money. And you’re gonna begin to
trade based off those numbers. And you’re only gonna trade
where you seem to have an edge while eliminating everything else. This is the hardest thing to do. I still struggle with it, but in the beginning
you don’t have a choice. And this is what I did when I
turned to become profitable. And it happens very quickly. I tell people this all the time. Once you’ve figured out and
once you’ve becoming disciplined and you use your information to help you, it happens very quickly, how quickly you can turn things around. And this is all about having
patience and discipline. Sticking to your numbers,
tracking the trades correctly, following this little
five- to six-month plan, and trusting it every single day and trading everything correctly
based off your numbers. – 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. (gentle music)

13 thoughts on “10 Easy Steps to Consistent Trading

  1. Being patient and Discipline.. those are the keys in Domโ€™s story. I watched it couple of times, I took some notes and I memorized his tips.๐Ÿ“šThanks for this useful lessons๐Ÿ“š

  2. Are you sure you trained him? He didn't even call one person a bumbling idiot or anything!! But excellent, quick, little, to the point presentation!

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