If you’re playing a poker game and you look around the table and you can’t tell who the sucker is, it’s you.
– Paul Newman –
If you think you are going to get rich quick day trading stocks You are an idiot. Yes I said it. You are a complete 100% idiot and You need to slap yourself. Let me be specific. Take your right hand and make a fist. Then extend your thumb as if you were hitchhiking. Next put your thumb in your mouth and blow several times real hard until your hand expands like the hamburger helper hand seen here. Now slap yourself 5 times. Don’t worry I will wait. Are you done? Good.
Where is all this sprightliness coming from you ask? Let me explain. I got an email the other day asking about the worth of the Tim Sykes’ millionaire challenge. A guy who read some posts on my blog decided to pick my brain about my thoughts on joining the challenge because I joined last year. He expressed to me that he thought the price was too high and wanted to see what my thoughts were on it. In essences I told him that it was worth it for me but I needed to know more about his situation and what his specific goals were.
Then he wrote…
Goal is the same… get rich quick :D… I don’t quite understand how you could not make real profit following his tips and hints… Let’s say I pick same stocks as Tim and I shorted them at same time or even later…. How come you are not been able to make money?
Then I wrote…
There is no such thing as get rich quick in my opinion but if that is your goal and you feel confident that you can take Tim’s “tips and hints” to make money then the money is a drop in the bucket. Good luck.
Honestly I cut the conversation short as I don’t want to speak with anyone who thinks this is a get rich quick scheme. He persisted to get more information and we went back and forth some more. It seemed like he wanted me to give him a magic answer to solve his personal dilemma because the money was a huge issue for him. I explained that the get rich quick statement was a red flag for me and I was ending the conversation but I wished him luck on his journey.
He then wrote…
Let’s be honest here everybody wants to sit in beach with drink and relax… dont you want a million dollars on your account ? of course you want …This guy Tim says that in 3 yeras of trading you can be a millionaire… he believes in this… you don’t… so don’t blame me for this thx for help anyway.
Our conversation pretty much ended there but I think it’s important to discuss some of the themes that are present in the above conversation. We have the get rich quick theme, we have the follow Tim’s stocks theme and we have everyone wants a million dollars to sit on a beach while drinking peacefully under the sun theme. I will address the get rich quick theme last as I think that has more importance and needs addressing.
Everyone Wants a Million Dollars to Sit on a Beach Drinking Theme
First, I don’t drink alcohol at all and I barely even drink juice, soda or water. Sorry to punch holes in your theme but as I get older I find my bladder isn’t as strong as it used to be so no drinking for me thanks.
Second, take a look at my photo in the about section. Does it look like I like the beach? I am so pale I can make the Pillsbury Doughboy look African! Even when I go to the beach I am constantly lathering myself up with sunscreen so I don’t get skin cancer. Sorry but no beach for me thanks.
Third, yes I can’t deny that I think pretty much everyone wants to be a millionaire but I live in NYC. A million dollars in NYC standards is not an accomplishment by any stretch. In fact, we are so conservative with our money my wife and I ask our kids to eat cereal with a fork to save milk. :).
Just Follow Tim Sykes’ Stock Picks Theme
If you think all you need to do is buy a subscription to Tim Sykes’ alerts or anyone for that fact and follow their picks in order to get rich quick please take your right hand and make a fist. Then extend your thumb as if you were hitchhiking. Next put your thumb in your mouth and blow several times real hard until your hand expands like the hamburger helper hand seen here. Now slap yourself 5 times.
Are you for real? Let’s break down a best case hypothetical scenario.
Let’s say you join a chat room called Stocks Are Us (SAU) and the main moderator buys a stock at $5.00 and alerts their subscribers. If you are extremely lucky you are sitting patiently wide awake waiting for their buy alert. Your fingers are ready to push the buy button once you know which symbol to add to your trading platform. You then rush and type the ticker and buy the same stock at $5.12 or 12 cents more than the main moderator at SAU paid. Then it goes up as you hoped it would and as your trading account inches closer to the million dollar mark you get an alert from SAU stating they sold the stock at $5.50. You rush to sell because you were still sitting patiently and luckily you get filled at $5.37. You just made a .25 cent profit or better said you made 5% on your get rich quick trade. SAU made .50 cents or a 10% profit but who cares. You are getting rich quickly and that is all that matters.
However, what if you aren’t sitting at your computer waiting patiently for stock alerts? What if you are using the bathroom, eating lunch or picking your nose? Wait what if the stock goes the wrong way? I mean let’s be real even Tim Sykes loses approximately 25% of the time which is better than most. That means, assuming SAU has the same track record as Tim, there is a 1 in 4 chance you will lose (more) money if you blindly follow ANYONE’S trades.
Let’s take it a step further. Even though the SAU stock alert is “real time” you have to allow for lag time between alerting and receiving messages through the magic of the Internet. Then once you get the alert, assuming you act fast without reading what is written, you still need to see what the stock symbol is and if it’s a buy or a short alert. That all takes time. A lot of valuable time.
Listen if you don’t believe me then click here and read the best guest post ever from a trader who makes a million dollars a year posted directly on Tim Sykes’ website. Gregg (LX21) will explain it a lot better than I can.
Get Rich Quick Theme
There are several ways to get rich quick. Here are some great examples if getting rich quickly is your thing.
- Inherit a fortune
- Bet on a horse with high odds
- Marry rich
- Have rich parents
- Sue someone with a lot of money
- Catch a record breaking home run ball then sell it
- Dig for oil or gold
Actually digging for oil or gold might not make you rich in 2015. Ixnay on the last one. Anyway, the above are all great ways that I can think of off the top of my head that will help you get rich quickly. However, day trading is not one of them. In fact, 90% of day traders lose money.
Let me say that again.
90% OF DAY TRADERS LOSE MONEY!
No! Let me say that even louder.
90% OF DAY TRADERS LOSE MONEY!
Don’t get me wrong… You can make really good money day trading stocks but, aside from dumb luck, making money in the stock market comes after solid education. Why? Because you need to know how to read a chart, understand level 2, recognize a good catalyst, read an SEC filing, scan for the right stocks to trade, find a good broker, abide by the rules, learn to manage risk and not be afraid to be wrong so you can cut your losses quickly.
Now let me scream.
90% OF DAY TRADERS LOSE MONEY!
Listen I am not trying to discourage anyone from learning about the stock market. I have enjoyed almost every moment of this entire journey. In fact one of the highlights I wrote about here was when Tim Sykes flew me out to day trade with him on his own dime. That was extremely cool but for me it is also cool to help answer people’s questions along the way. I feel like it’s a personal duty of mine to do that with no strings attached.
So, with that said I promise that I will continue to answer questions anyone has about anything related to this journey. I promise that I will continue to do it honestly and to the best of my ability BUT if you mention to me you would like to get rich quick I am going to tell you to take your right hand and make a fist. Then extend your thumb as if you were hitchhiking. Next put your thumb in your mouth and blow several times real hard until your hand expands like the hamburger helper hand seen in the photo on the left. Now slap yourself 5 times.