I am a stock trader and I earn a living from trading the smallest, most volatile publicly-traded companies in America. There is no salary, no pension, no health insurance, not even any coworkers, but the independence of it all is exhilarating.
If you’ve been visiting RetailTRADER for any amount of time you know who my trading heroes are — everyday guys and gals who started out just like like you and I — working hard, studying hard and trading hard — until they amassed a lot of money in the stock market.
Because that’s what we’re all trying to do, right? Get amazingly, shockingly, fantastically RICH!
That’s why I love legends like Dan Zanger, Nicolas Darvas and William O’neil, who all took small accounts and built them up to millions using the same info and methods available to all of us.
Which brings me to today’s post — outspoken millionaire trader, ex-hedge fund manager, and now stock market educator, Timothy Sykes. Because this guy is the real deal and he’s offering his book, An American Hedge Fund, free for download on his site.
How awesome is that?
Now, before I get to my thoughts on this fast little read, let’s talk about who Timothy Sykes is and where he came from.
And because I know NO ONE knows how to use Google, here’s the bullet point list.
- Timothy Sykes was born.
- Timothy Sykes had a bar mitzvah and received $12,415.00
- Timothy Sykes began trading.
- Timothy Sykes went to Tulane University.
- Timothy Sykes turned $12,415.00 into $2 mil in like 2 years.
That is exactly what I’m talking about. Yes, the results were amazing. Yes the results were audited. Yes, you should read a book written by a guy who did what he said he did and made a lot more money than you trading the stock market.
Now, I know that some people will read An American Hedge Fund, look at results like the results Timothy Sykes achieved, and decide that because it was the late 90’s and the tech bubble was raging, that the returns are meaningless.
To me that argument is meaningless. Why? Take a second and tell me what your returns were during that same period. Did you turn 12k into 2 mil? Do you know ANYONE who did?
I’m guessing not.
So not only are is An American Hedge Fund going to give us a lesson in how to make that type of money, it’s also going to give us a lesson in how to KEEP that type of money. To me that’s a great lesson!
But enough about that, here’s what I learned reading An American Hedge Fund and why I think you should read it too.
1. Don’t Start a Hedge Fund
lol. Seriously, if you learn how to trade and you are making good money doing it, stick with that. Or do what Sykes did, and start teaching others. Seems like a much more rewarding thing to do.
2. Create Your Own Plan
Study, study, study the market and look for patterns. Anything that appeals to you. Forget canned systems, black boxes or get rich quick trading ideas. Trading takes time and it takes work. Time — and work. Read that again. Time. And work.
Now go do that.
3. Work Your Ass Off
Say what you will about Sykes (some people REALLY don’t get his style), but this guy works his ass off! And An American Hedge Fund shows us exactly how hard he worked creating and trading his system from 12k to 2 mil. Now he’s working his ass off for his students.
You should be doing the same thing.
4. Keep What’s Working, Jettison the Rest
Sykes was smart to watch his trading methods and learn when something was no longer working. Even if it was working in the past, as soon as it stopped it was jettisoned and replaced with something better. What about you? Are you holding onto a method that no longer works for you?
If so, ditch that sucker and move on.
5. If You Want to Get Big, Go Big!
One thing I have learned from all of the great retail traders is trading a concentrated portfolio. This means 1-2 positions at a time. In An American Hedge Fund Sykes recounts the many times that he put 30, 40, 50% of his total trading account into a single position. When it paid off he banked. When it wasn’t working he closed out FAST.
That’s how you have to be in the beginning if you want to get HUGE. Sure, this style of trading isn’t for everyone. But time and time again I read about famous retail traders doing this at the beginning of their trading careers.
Get this book and read it now. An American Hedge Fund is a FAST read (I read it in a couple hours) and you will gain insight to one of the best new generation retail traders. And did I mention it’s FREE?
Let’s rock these markets!
Want More from Timothy Sykes?
I know I do. That’s why I’m always checking out his blog or his videos or tweets. So let me make this easy for you, here’s a bunch of cool links to more Timothy Sykes stuff:
- Follow Timothy Sykes on Twitter
- Check Out Timothy Sykes’s Website and Blog
- Follow Timothy Sykes’s Trades and Learn His Method
- Follow Timothy Sykes on YouTube