For years I’ve taught students to do something that goes against the entire trading industry…
Start small.
My haters on social media LOVE to call me out for it.
Especially when you can open X any day of the week and find someone tweeting screenshots of 5- and 6-figure wins.
The reality is, very few people are willing to open up about what it took to get there.
If you REALLY want to reach the level where those size gains are possible, you MUST understand how important it is to do this…
Table of Contents
Lock In Small Gains and Avoid Big Losses
I will always teach people to start trading small and learn to lock in gains.
It doesn’t matter if the market is choppy (like we saw most of July) or bouncing like the past three days:
It also doesn’t matter what pattern works best for you (or your favorite time to trade).
The most important lesson to take away from the entire market right now is…
Take Singles and Don’t Go for Home Runs
There are tons of opportunities in this market for those who are willing to take singles and NOT go for home runs.
Every day, Trading Challenge students are locking in small gains on big runners.
There’s no one best pattern or time of day to trade, either.
I have my favorite, but the most important thing is having the right mindset.
This video goes into detail about my thought process in this volatile market.
Did you notice that no matter which pattern..
No matter what time of day…
… and no matter what my reason was for the trade, I followed…
Rule #1: Cut Losses Quickly
Taking small losses does two things:
- It protects your trading capital for the next opportunity
- It helps you to stay confident instead of getting worn down.
Which is exactly what happened to Inner Circle mentor David Hanlin on this trade…
The Laptop Legend’s Biggest Loss Ever
Before you read on and watch the next video…
David Hanlin, aka @thelaptoplegend, is a GREAT mentor to our Inner Circle students.
He’s also one of the best traders I know. Which is why I want you to watch his video:
How I Took My Biggest Loss Ever Dip Buying SNDK & SOXL
I want to thank David for his honesty about how painful a loss like this can be.
But I also want to point out that he has earned the right to trade with that kind of size.
I have zero doubt that he’ll recover from his big loss fast (AND learn from it).
One important point that David made was that even though he took a big loss…
His thesis was right.
He was so exhausted that he had to watch his thesis play out after he’d taken the loss.
This is super important! It goes back to this quote often attributed to John Maynard Keynes…
“The markets can remain irrational longer than you can remain solvent.”
That’s true of my favorite time to trade right now, too.
When the Biggest Moves of the Day Happen
There’s a four-hour window at the end of the trading day when most traders close their laptop and walk away.
Other traders stick around for big moves with smaller volume (and NO halts).
It is an amazing time for a new trader to grow a small account.
And now you can…
Get My After-Hours Watchlist Free, Every Trading Day
Before you start the rest of your day…
Remember How Magical Our World Is
Check out what I did yesterday morning (August 3):
Remember how magical our world is and how truly miraculous it is to work and trade from anywhere — retweet if you would work/trade from here because offices and cubicles suck and are for the narrow minded only! pic.twitter.com/TBsEgileS9
— Timothy Sykes (@timothysykes) August 3, 2026
It was SO beautiful. Any guesses where I was? (Let me know what you think in the comments).
Final Thoughts
There will ALWAYS be another play.
The markets aren’t going anywhere and the same patterns have been playing out for decades.
The question is, will you stay solvent long enough to consistently lock in gains?
That’s it.
So, start small and learn to lock it in.
And watch the Laptop Legend’s video again and take notes. His purpose in creating that video was to help you NOT make the same mistakes he made.
Cheers,
– Tim Sykes
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