Tim Grittani’s Tips for New Traders: Key Takeaways
- DON’T MISS the #1 trading rule Grittani had to relearn mid-career…
- Patience truly is a virtue — see what that means for traders here…
- Learn how you can carve your own path and why it’s smart to find your unique trading strategy…
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Tim Grittani might well be the BEST penny stock trader. He started with $1,500 and has now turned it into over $13.5 million in trading profits.* Nope, it didn’t happen overnight, and he’s had many ups and downs over the years. Along the way, he’s gained a ton of trading wisdom.
Learn from this incredible trader now! Read on for Tim Grittani’s top five trading tips.
Table of Contents
Grittani’s Tip #1: Cut Your Losses Quickly
The fact that this is Grittani’s #1 tip is no surprise. And this takes serious discipline.
Grittani found discipline early on in his career. He says it’s one reason he found so much success.*
But at one point in his career, he lost touch with those beginning principles. He started losing weeks’ worth of profits in just one bad trade. And he had to relearn this rule again.
Learn from Tim! Also, note that being down in a trade doesn’t necessarily mean it’s time to cut out. It’s all about what the chart says…
- Risk off of a previous support level like the low of day or another area that has held up.
- That risk level could be 5%, 10%, or even 20% lower than your entry price.
How far down that support level is will determine the SIZE of your position. Take a small position if the downside is larger.
Grittani’s Tip #2: Start With a Small Account
Grittani started with $1,500 and turned that into over $13.5 million* … But that $1,500 didn’t last.
He blew up his original account.
Not every newbie trader can afford to lose $1,500. So you have to trade small. It’s one reason so many small-account traders are drawn to penny stocks.
And if you want to branch out of penny stocks with your small account, you can apply my rule of 10 … Start knocking off zeros.
- Set your risk to keep your positions small — $150, $15, or $1.50. It’s better than not starting at all and you can get a solid sense of what trading feels like.
- Also note that losing $1,500 is better than losing $10,500 or $150,000. Those losses take way more recovery time.
- Never risk money you can’t afford to lose.
Penny stocks are volatile and wild. That’s why they can see such great gains. But the other side to that is great losses.
You will lose early on. Even traders who can afford to lose a lot should handcuff themselves to a smaller account. Learn to lose small so you don’t lose big.
Grittani’s Tip #3: Don’t Expect Quick Money
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This tip pairs well with the last one. You’re far more likely to lose big than to win big early on …
It’s common to jump into the market and think that you’ll beat the odds. You won’t.
Expectations can also add unnecessary pressure to perform. Even very successful traders like Grittani and Small Cap Rockets’ Bryce Tuohey find themselves forcing trades because of that pressure.
And what does forcing trades cause? Mistakes!
- Stay in your natural flow and stick to the patterns and style you know best to help build consistency in your habits and execution.
- Remember, it took Grittani nine months of trading small to figure things out. Most traders take longer than that.
He kept working to figure out what worked for him — and continued to learn. Those small losses and a patient learning process helped Grittani become successful over time.
Grittani’s Tip #4: Never Follow Alerts
There’s a lot of noise out there telling you WHAT to trade and exactly WHEN to trade it. That’s not thinking for yourself.
Here at StocksToTrade we emphasize learning to do the work on your own.
The vast majority of day traders don’t last. Too many blindly follow tips and tricks from those who don’t actually teach. They gobble up ticker symbols and entry/exit points without even knowing WHY they’re making the trade in the first place…
It may work for a bit. But it won’t last. And what if your ‘hot stock guru’ disappears? Did you learn enough to become a self-sufficient trader?
Don’t be a sheep following the herd. Take the time to learn why something’s a good trade before going through with it.
Grittani’s Tip #5: Try a Lot of Things
There are so many different styles of trading out there. It doesn’t hurt to try a lot of them at least once.
But only get out of your trading comfort zone if you’re trading small and keep your expectations in check.
Grittani had crazy mixed results early on trying different styles. He was losing money a lot of the time. But he was learning a lot about himself in the process.
Some of the styles felt right to Grittani while others made him uncomfortable. That helped lay the path forward for his later successes.
Tracking what you’re doing helps, too…
- While trying different styles, keep notes for future reference.
- Does this style translate to wins? Did that other style show consistently poor results? How did you feel in the process?
You don’t have to recall trades from memory. I don’t think any established trader would recommend that. What’s smarter is to have a written log of your successes and failures. Then you can study WHY you had those results.
You can then zero in on the styles and patterns that you had the most success with.
Those better results can boost your confidence as you scale into larger positions.
Conclusion
It’s not hard to see why Tim Grittani is one of our all-time favorite traders…
He and Tim Sykes both started with small accounts. They built themselves into incredibly successful traders and have a lot of wisdom to offer.*
New traders face a steep learning curve. It’s like drinking from a fire hose. That’s why StocksToTrade is so focused on providing value-packed tools and resources.
One of those is the Breaking News Chat, which keeps traders up to date on the stocks they’re most interested in trading. Test drive StocksToTrade with Breaking News Chat today!
Need mentorship? Check out the SteadyTrade Team, where you can learn to trade with seasoned pros. You get twice-daily webinars to help see what we’re trading and why and so much more. Apply to join the SteadyTrade Team here.
What’s your top tip from Tim Grittani? Still have questions? Drop your comments below!
Disclaimer
*Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. Most who receive free or paid content will make little or no money because they will not apply the skills being taught. Any results displayed are exceptional. We do not guarantee any outcome regarding your earnings or income as the factors that impact such results are numerous and uncontrollable.