I don’t mean to brag, but…
I’m on a heater.
I caught the big run on AKTX last week (sold too soon, but still caught it).
I also nailed MNTS in premarket.
This is an awesome market for disciplined traders, but still a VERY choppy one for small-cap runners.
These plays don’t last long. They spike, and then they fall … fast.
To capitalize on these moves, you can’t just sit down at your laptop and trade like every other idiot on Twitter…
Jack Kellogg has $33 million+ in verified trading profits because he follows rules.
That’s what I want for you.
These are the 8 rules that led me to $8 million…
No. 1: Go where the best setups are.
Premarket and after-hours spikers are crushing it in this market (especially for small accounts).
Watch big percent gainers sitting near their premarket highs.
If the volume is there and they break those highs early in the day, they can really run.
But you need to be at your screen by 7 a.m. ET. If you miss the window, you miss the gains.
No. 2: Be careful dip buying.
The best trades are coming from strong charts.
Beaten-down small-caps aren’t springing back to life, and the spikers don’t last long. Don’t overstay your welcome or try to catch falling knives.
Most traders chase “discounts” on stocks crashing 50%+… but the biggest opportunities are often in the strongest movers, not the weakest.
Big percent losers can keep falling for a reason. Focus on strength, momentum, and proven patterns instead of trying to catch a falling knife…
No. 3: Trade extra-safe (aim for singles).
Try to make 10-20% on a position and get out.
Don’t think you’re gonna change your life overnight on one trade (you’re more likely to blow your account up).
Take the small wins, then move on.
Repeat, over and over and over again.
Small wins build discipline and give you the confidence to size up later. Consistency, consistency, consistency.
No. 4: Ride the hype, don’t buy the hype.
Trade the moves on these ridiculous runners, but don’t believe what the CEO says.
Expect the worst from every company and you’ll never be disappointed.
These aren’t investments. The fundamentals don’t matter.
The types of trades that have made my students rich are all about the near-term story and the chart pattern. When the volume dries up, the spike is over.
No. 5: Cut losses quickly.
This is my #1 rule.
If a trade is going against you, cut losses quickly.
I’m wrong roughly 1/3 of the time, but I’m still a multi-millionaire trader. How?
I control my losses when I’m wrong.
My winners are bigger than my losers, and that’s how you survive long enough to master trading.
No. 6: Never blindly follow trades.
Never blindly follow trades from anyone (including me).
Don’t enter a trade just because someone else is. If you can’t explain why you’re in a trade, you shouldn’t be in it.
Use trades to learn the process and find the patterns that work for you.
They are like training wheels. The goal is to study the setups until you can spot them yourself in real time.
No. 7: Knowledge before profits.
You only have one job at this point: get better at trading.
Don’t try to make as much money as possible. Forget money for a second.
I have millions of dollars in profits, but I’m PAPER TRADING right now to re-optimize my strategy.
Study the patterns and track your trades … review your losers harder than your winners.
No. 8: Don’t feel bad about missed opportunities.
You missed a huge move? Get over it. Trading opportunities are like trains … there’s always another one coming.
You can either wallow in your missed trade or get to work on nailing the next one…
Your call.
If you have any questions, email me at SykesDaily@BanyanHill.com.
Cheers,
Tim Sykes
Editor, Tim Sykes Daily
