Millionaire Mentor Update: Preparation Is Key

Timothy SykesDear Penny Stock Millionaire,

Preparation is key. I say it all the time but too many people aren’t getting it.

There’s a common statistic thrown around that says 90% of traders lose. Why do so many lose? Because they’re unprepared and they don’t follow rules.

Here’s a little wake-up call to anyone learning to trade penny stocks: You haven’t studied enough. You still haven’t figured out that preparation is key.

The stock market is a battlefield. You don’t have the luxury of going into battle without being prepared. Study or get crushed. Read on for more about why preparation is key to success.

Trading Mentor: Questions From Students

Each week I answer one or two questions from students. It’s my honor and duty to teach. My goal is to cut through all the BS and be the trading mentor to you that I never had.

Our focus this week is on preparation. Preparation is key because the market will keep giving opportunities. You just have to be ready.

The first question this week is about recognizing and adapting to shifting patterns…

“In a video lesson, you said, ‘the 11 a.m. bounce is a thing lately.’ What does that mean?”

Normally I like dip buying right near the market open. Often we get the bounce in the first five or 10 minutes. But lately, we’ve been seeing bounces later. That’s just something you have to adapt to.

I’ve mentioned the trend in several recent video lessons and webinars. I tried it on August 17. Check it out…

Conversion Labs Inc (OTCQB: CVLB)

Conversion Labs has benefitted from the shift to virtual medical treatment. The company has a nationwide physician network and ships medications directly to patients.

Look at the CVLB three month chart below:


CVLB chart: 3-month, daily candle, multi-day runner — courtesy of

As you can see, CVLB was a multi-day runner leading into the morning panic on August 17. I thought it was a gimme given its recent strength.

Here’s the August 17 CVLB intraday chart with my trades:


CVLB chart: August 17 intraday, morning panic, 11 a.m. bounce — courtesy of

My first trade was on the classic morning panic, but the bounce wasn’t as big as I expected. There were some big sellers on the ask, all in the $1.40s. I played it safe for a 5% win and $1,540 in profit.

Testing the 11 a.m. Bounce

The second trade is an example of how a lot of dip buys have bounced later recently. I took a smaller position size due to the stock being scary. But it was a good patience trade based on the 11 a.m. bounce. It was a 6.34% win for another $540 in profit.

I probably should’ve held it longer, but it can be tough to be patient when you learn a pattern. Which is why I don’t teach people to just memorize patterns. You have to start understanding why it’s happening.

Why is the 11 a.m. bounce happening? Because so many people are looking for the dip buy right away and it’s becoming crowded.

The thing to remember is that the pattern hasn’t disappeared. It’s just mutated a little.

Next question…

“You often say preparation is key. What’s your number-one preparation tip for both new and experienced traders?”

It’s all about learning a little bit every day. For example, learn to recognize pattern adaptations. 

When you go through all the content my team and I put together, you’ll start to see the nuances and minor variations. Then you have to try to learn to adapt to changes as they happen.

So for those of you who like dip buys, you can start looking for the 11 a.m. bounce. Or even consider holding until 11 or 11:30 a.m. But don’t get too attached to it because it’ll likely shift again. You have to constantly test and tweak.

If you’re impatient, like me, you might like quicker bounces. Other people like shorting first red days.

Preparation Is Key: Find What Works Best for You

Preparation is all about you finding what works best for you. That’s why preparation is key.

The market goes through hot periods and slower periods. Different sectors get hot. But it will always give opportunities — sometimes more and sometimes less. The question is … are you prepared?

You have to picture yourself almost like a batter in baseball. The market is the pitcher, and it will keep throwing pitches at you.

You have to figure out what you’re best at. Are you better at fastballs? Are you better at curveballs? Should you not swing sometimes?

Keep in mind … the market doesn’t care. The market will just keep throwing stuff out at you.

It’s your job to be prepared for as many pitches as possible.

Preparation Is Key When Trading Different Setups

A great example is Jack Kellogg. Jack took a big loss shorting Turtle Beach Corp (NASDAQ: HEAR) in May 2018. After that, he decided to stay away from short selling for a while.

He focused on OTC long setups until he felt comfortable and could adapt. Then he slowly started working on shorting again.

Fast forward to today, and Jack’s a perfect example of preparation meets opportunity. He can trade long or short. Sometimes he goes short and long on the same stock. It’s like he can swing and hit different pitches. (Do you think it helps that Jack wears his chain on the outside?)

Now it’s time for the…

Trading Lesson of the Week

This is a simple lesson, but too many people find it difficult…

Don’t Be Afraid NOT to Trade

Especially in August. Some of my top students made between $50,000 and $300,000 in June. It was capped off by that amazing CytoDyn Inc (OTCQB: CYDY) morning panic on June 30. Tim Grittani also gave an amazing webinar packed with lessons after his $272,000 win that day.*

Then July was a bit slower. Now August is slower again. I’ve still made $65,000 three-quarters of the way through the month. So it’s not a terrible month. Actually, it’s stronger than most Augusts.

But at the same time … if you compare August to July it’s much slower. Compare August to June and it’s WAY slower. So you have to adapt.

Tim Grittani is on vacation right now. I don’t even know if he’s looking at a laptop. He’s already made $3.6 million this year. So this is not a normal 9-to-5 job. You either adapt or perish.

How do you adapt? Preparation is key. I can’t emphasize that enough. You have to learn the basics and then gain enough experience trading small to adapt. That includes knowing when to step away. Sometimes the best trade is no trade.

Millionaire Mentor Market Wrap

That’s another one in the books. Use this last week of August to study — especially if it’s a slow week. Remember, preparation is key, so learn a little bit more every day. Study the past. Spend time building your knowledge account.

Also, start testing and tweaking different setups. Even if it means paper trading a new setup on StocksToTrade for a while. It gives you more options as the market shifts. Again, think of it like being able to hit different pitches.

Leave a comment below saying, “preparation is key, so I will study.” Also, tell me what you think of this post. I love to hear from all my readers!

Talk to you tomorrow,

Tim Sykes
Editor, Penny Stock Millionaires

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Timothy Sykes

Tim Sykes is the editor of Tim Sykes’ Weekly Fortunes, Tim Sykes’ Weekend Profits and Tim Sykes’ Profit Calendar He also writes the free daily e-letter, Tim Sykes’ Penny Stock Millionaires

Tim’s most famous for turning the $12,415 dollars he received at his Bar Mitzvah into more than $1.65 million dollars in trading profits by...

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