Transcription
What if I told you that the most popular day trading strategies online are the exact reason why most traders never become profitable, let alone become a millionaire? I literally have tested all of them, and the results shocked me. Because here's the sad truth about this industry: 90% plus of these strategies are built for hedge funds with unlimited capital, not somebody trying to grow a small account.
The most promoted strategies online — scalping, swing trading, momentum chasing — they're built for institutional traders with deep pockets who have great technology, a split-second execution. I personally tried these strategies. Scalping is just terrible, okay? It wipes out consistent gains within days or weeks. Swing trading requires holding positions overnight. It takes on a lot of risk, especially in a choppy market like we're seeing.
And with a small account, you know, you have to choose quality over quantity. If you have a $500, you know, a $1,000, $2,000, $5,000 account, you don't need to try to chase everything. You don't need to try to scalp everything. It really is about quality over quantity, okay? You need to learn the process, and you need to learn discipline. I know I say this a lot, but it's true.
Understand, the popular strategies that most people, uh, you know, see, guess what? They require you to be more right than wrong. But, if you look at like a lot of my top millionaire students like Jack Kellogg, he barely has a 50% win rate. The newest millionaire students are not winning the majority of their trades. They just win more on their wins versus losing small on their losses.
So, the good news is you don't have to win 70, 80, 90, 95% of the time like you think, but you do have to really kind of think about these counterintuitive strategies, and I'll go over them in this video, okay? The point is it's not about finding a strategy that wins so often. It's about finding one where your wins massively outweigh your losses, which involves choosing the right setups, okay?
The real edge for small account traders is not complexity, okay? It's finding the most inefficient corner of the market where the odds are stacked in your favor. And even if you win 40-50% of the time, your wins can be 5, 10, 20 times the size of your losses. That's how you become a millionaire. And that's tough to teach because who wants to win like 40-50% of the time? But the good news is you don't need a huge winning percentage to make millions, okay?
The one market that most traders ignore is where the most millionaires are created. I say that the most money you'll make is in the smallest details. So, if you're watching this, you know, feeling like you're running out of time to make trading work, like you're behind, uh, and the window is closing, this is exactly, uh, the market that changes that because there are so many small cap and micro cap plays where they're spiking and you get to practice. That's my niche. This is my big secret.
You know, while everyone is watching CNBC and trading large caps and crypto and forex, there's an entire category of stocks: low float, small cap, and micro cap stocks that move 100, 200, even 1,000 or 2,000% in a single day. And you don't have to take the whole move to really make a lot of money. And this is the single most inefficient niche in the entire stock market. You know, I've been trading penny stocks, but this is what it's all about. The inefficiency is where real edge lives, specifically for those of you with small accounts, okay?
And the reason that most traders avoid it — it looks dangerous, it's volatile, it's unpredictable — that's exactly what makes it profitable if you know the specific patterns and rules, okay? Click below, learn my seven-step framework because this is built specifically around this inefficiency, okay?
I'm looking for big runs, I'm looking for morning spikes, I'm looking for morning panics, I'm looking for first green days, low float breakouts, patterns that repeat over and over again, and you're just waiting for the patterns to pop up, and then you trade. You can't go looking for trading all the time. It's actually kind of cool. You don't need to trade as much as you think you do.
Like I said in the beginning of this video, quality over quantity, and this doesn't change. Like the patterns that I've traded now for a quarter of a century, they're the same. In fact, there's just more liquidity and more volatility now. Why do they never change? Because human psychology doesn't change. Emotions never change. The tickers might change, but the patterns don't.
So, you don't need to trade every day, you don't need to trade every stock, you need to wait for the ideal setups. You need to wait for the market to serve you the setups that have odds on your side. And again, you're not going to win every time, just like my millionaire students, but if you focus on these trades where you can win 5, 10, 20 times the size of the potential losses, as long as you follow rule number one, which is cut losses quickly, your account grows. That's the beauty of this. This is the beauty of being real in an industry full of fakes, okay?
You take your small gains, you walk away, you gradually stack your knowledge account and your brokerage account. That's how you become a millionaire. Remember, former runners can run again. So, I'm looking for big percent gainers, but I'm remembering which plays ran big in the past. So, it's the same stocks, it's the same patterns, it's the same emotional triggers. This is why studying the past, frankly, is the single biggest edge. I say studying the past is the key to unlocking your future.
If you have a small account, you don't need cutting-edge technology, you don't need, you know, all of this hedge fund, uh, edge or alpha that you think you do. You just need discipline, and that's why I'm so proud to teach you. Understand that process beats hot picks every single time, okay?
The biggest lie in trading is that you need someone else to tell you what to buy. Here's a pick, here's a pick, here's a free chat room, here's an alert, here's a signal, here's a hot pick. Guess what? There's a lot of free chat rooms out there. Where are their millionaire students? Oh wait, they don't have any, or specifically, they don't have many because they're not actually learning a process; they're just following somebody else.
So the beauty of my 50 plus millionaire students is that they actually learn the process; they're now self-sufficient. I don't want you to follow alerts from anybody. The only reason why I even tell people what I'm trading, and I trade with a small account, I also have a paper trading account just to practice and learn on. I want you to learn my mindset, and you can apply that to yourself, okay?
It's not about following picks, it's not about copy trading; that's BS, that will never make you very much money, let alone teach you much, okay? That's what keeps traders broke and dependent on others forever. Every single one of my 50 plus millionaire students is self-sufficient. They don't need me anymore because they learn the process and they focus on the seven-step framework and specific steps that work best for them, not just hot picks or hot alerts.
And the aha moment that many of my top students have is they follow the rules, they take small losses. It's okay to be frustrated, it's okay to be wrong, but you can't break rule number one, you can't have big losses, you can't let a small mistake turn into a potential disaster. But the aha moment is what if you do break my rules, right? Okay?
Like what if you win once and let's say you don't cut losses and then, you know, maybe the stock comes back and you're like, "Haha, Sykes, I don't need to cut losses quickly." Then you think my rules are wrong. But then, again, because you're playing with fire when you risk big losses, you take a catastrophic loss, and then the lightbulb turns on and people are like, "Oh, I see why Sykes says stay safe." Okay, so sometimes you have to take the big loss to understand what I'm saying. That's part of it. It's sad, but it's true.
Again, my average profit over 25 years is just $1,500. Doesn't sound like a lot, but that is compounded into multiple millions because the process is consistent and repeatable. $1,500, $1,500, $1,500. Sometimes $2,000, sometimes $500, then a loss. Sometimes I lose $100, sometimes I lose $200, sometimes I lose $300. But if your wins are bigger than your losses and you're focused on good setups where the odds are on your side, it's inevitable. That's the beauty of this.
Bull markets, bear markets alike, the traders who make millions are obsessed with staying in the groove, taking singles, and cutting losses, and then showing up again and again and again. Not necessarily trading every day, just showing up waiting for the right setups that follow my seven-step framework. Because here's a hard truth: understanding the process and actually executing it day in, day out while under pressure, they're two completely different things.
Every one of my millionaire students that I've created got here faster than I did because they were not learning alone in the dark like I was. Like I said, I never had a mentor, and that confused me for a very long time. The real cheat code is a repeatable process built around one of the most predictable patterns in the most inefficient market. Not a any hot tip, not any hot signal, not luck, okay? It's a process, and I'm very proud to teach how I've optimized this process over time, too.
And if you've been trading for weeks or months or maybe even years and you're still not consistently profitable, maybe you're confused why you're trading, there is a specific reason why, and it's probably not what you think. So, I actually built a free quiz that pinpoints exactly what's holding you back and what you need to do to fix first. No fluff, no general tips, your exact situation in 2 minutes. The link for this free quiz is below. Take it now and find out what's been holding you back.
Okay, I do want to recap because I know this can be confusing to hear. People want hot picks. I'm trying to teach them a process. You need to focus on the right market with the right patterns and the proper process that you can learn and optimize. My 50-plus millionaire students, I'm not here to brag about them. I'm here to show you a path because they all started exactly where you are right now. None of them had huge accounts. None of them knew anything about trading. Most of them were skeptical. They had friends and family saying that I was a scam, penny stocks were a scam. They were probably feeling behind, okay? They were consuming content trying to learn all sorts of strategies. That's not ideal for people with small accounts, okay?
And the difference between my top students and everyone else is not talent, it's not capital, it's not intelligence. It's finding the right process and committing to it every single day and learning to get a little better over time so that by year two, year three, year four, you have it down pat. By year five, okay? Year six, then it feels so natural. That's what I want for you.
The market rewards practice and preparation, and it punishes ego and gambling and a lack of discipline, okay? The traders who win and keep their winnings are the ones who stop trying to be right all the time, and they start trying to be consistent. That's the key: consistency, preparation, and discipline. I know it's not fun, but you get to have fun with the money that you make from the not-so-fun stuff, if that makes sense.
So, I hope that this helps you. I know that it's kind of weird. Play this video again. Leave a comment below, tell me if you understand. There's a lot of links below where I tell you about my rules, my process, my patterns. This is stuff that I had to learn the hard way. It's my honor to give it to you.
So, here's your next move, by the way. Take the free quiz in the description. It's very important because it's tailored specifically to newbies who are making mistakes. I've been doing this for a while, my team has been doing this for a while. I want more millionaire students. Start with this free quiz. It's only 2 minutes of your time, and it could be life-changing. Most traders who watch this will finally understand what they're doing wrong. I wish that someone had created this quiz when I first started. They didn't.
So, this quiz will tell you exactly what to do about your problem, your situation, your account, and your next step. And there's 25 plus years of experience behind every answer that this quiz gives you. So, please take it. Do not skip it. Um, and then also watch this next video because I actually spent 25 years figuring out what 90 percent of people are doing wrong and the strategies that are built for the wrong trader. So, this next video shows you exactly what the right trader looks like and how to become one. The link is right there, too.