Today’s episode features an interview with someone who is undoubtedly a superstar in the world of day trading: Tim Grittani. This young trader is largely viewed as one of the best penny stock traders in the world; Steady Trade host Tim Bohen goes so far as to say that he’s “the most successful penny stock trader ever”.  

Having started with a mere $1500 in his account in 2011, Grittani has grown his account to a staggering $6.1 million in the past seven years. But before you start to hate him too much, know this: he’s a great guy, and he’s happy to share his knowledge. In this episode, he shares his secrets to success, dishes on some of his losses, and shares many lessons he’s learned the hard way.  

Note: This is part one of a two-part interview.

Tim’s story, in a nutshell

Tim Grittani’s story is legendary, but it’s been told many times before. Instead of going over the same old territory with him, this interview focuses more on his present and future and less on his past. However, to offer a brief overview to bring unfamiliar listeners up to speed:

Tim Grittani became curious about day trading when he was in college. After an initial investment period that failed, he realized if he wanted to get serious he’d need an education, which is when he sought out the teachings of Timothy Sykes. Armed with trading knowledge, he began to identify which setups and patterns were working for him, and began to trade in earnest. By the time he was 24 he’d made his first million; today, he’s more than $6 million in the green.

An ever-evolving career

As host Tim Bohen says, “If you’re not growing, you’re dying!”. Grittani is a perfect example of this concept.

Early on in his career, Tim Grittani found success buying OTC pump and dumps. However, as he says, “that doesn’t really exist as much” anymore, and his career has needfully adapted. While Tim still does some OTC trading, he has now mainly shifted to the NASDAQ.

These days, Tim identifies as a short seller;  70-80 percent of his trades are still shorts. In the interview, he talks about specific characteristics of a stock that he looks for, and rather importantly, the steps that he takes to mitigate risk. After all, as discussed in our short selling episode, while the potential for gain is unlimited with short selling, so is the potential for loss.

Tim doesn’t solely do short selling, though. He also looks for multi-day breakouts. If you’re curious about this type of investment, you’ll learn specific tips for why trades like this are enticing and what Tim looks for; you’ll even learn what time of day he trades them.

A lifelong learner

When Tim had to switch gears as a trader, he needed to change a lot of methods and approaches. Basically, he had to go through an entirely new learning curve. As he is quick to say, even though he’s made over $6 million, he still doesn’t consider himself a master of the market. In fact, he says he’s “just beginning” to get it.

Additionally, let’s just get this straight: Tim isn’t perfect. He’s also experienced some losses: he speaks about how recently he was down about $30k. However, he doesn’t let these losses get him down: he learns from them and tries not to make the same mistake twice.

Moreover, Tim provides inspiration in that no matter how much trading prowess you have or success you gain, it’s extremely important to approach trading from a beginner’s mindset because when you begin to feel complacent, that’s when you lose your edge.

The secrets to Tim’s success

In the episode, Tim expands on some of his secrets to success, including:

• Even though he’s made 6.1 million he says he’s only just getting there now.
• It’s important to stay humble.
• Approach trades with a beginner’s mind.
• Be willing to admit what you don’t know.
• Learn from your experiences, both good and bad.
• Try to keep losses small.
• The basics still apply to high-level traders.

Interested in following Grittani’s footsteps?

See if you have what it takes to join Tim Sykes’ Millionaire Challenge!

Got a pressing inquiry?

Do you have questions about this episode or another trading topic? Visit the “submit your audio” portion of the website to ask us anything. You may be featured in an upcoming episode.

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