- What's up, Tim Sykes here chilling in bed.
Leave a comment underneath this video
if you want to learn how to make money in a bear market.
Say yes or no.
Some people don't want to make money in a bear market.
Some people like losing money.
Some people have childhood issues
and then they play them out subconsciously
through their financial failures, I don't know.
So that's actually important.
I know you think I'm kidding but leave a comment below
if you want to learn how to make money in a bear market.
I can only teach you if you're serious.
As you can see, I'm teaching very seriously from bed here.
But this is the laptop life style, this is what's possible
and I want to show you that.
If you answered yes or if you're still watching
what is one way of making money in a bear market?
Or what is the best way?
You know, I have patterns on the long side,
but you should also learn how to short sell.
I've made millions going long,
I've made millions going short,
and in a bear market, you know, three out of four stocks
fall in a market.
A bear market is defined by the market dropping pretty big.
I know different people have different percentages
but so far at the end of 2018 we have slipped
into the formal definition of a bear market
and I know there is money to be made short selling.
So for me I'm looking for stocks that are spiking the most.
Everything starts and ends with big percent winners for me.
I don't really look at stocks that are down a lot
when they're down 30, 40, 50% of the day.
They're kinda of different companies.
I don't like shorting stocks down that big
even if the news is pretty bad because sometime the news
is already priced in.
I really like shorting big winners
and big winners up for the wrong reasons.
So in the past few days there's been a few stocks
UXIN, MRIN which have tripled in the past few days
with they had deals with Alibaba and Google,
very good news, but they didn't triple right away.
They actually tripled over several days because
early shorts got squeezed and that opens the door
to some opportunity.
So in a bear market everyone is looking for the shorts
and you have to kinda think a little differently.
You shouldn't be looking for short right away.
I know this counter intuitive.
You're like, come on, Tim, I want to make money,
but trust me, there's are a lot of newbie shorts
in the game right now and they jump at anything
that's up, and they say, ooh, bear market,
stock up, let me short.
They think kind of like cave men.
Ooh, stock up, let's short.
And those early shorts, actually, sometimes they're right
but sometimes when they're wrong, often times
when they're wrong the stock keeps going
and it creates a short squeeze, and because I'm telling you
about this, you should be aware of it.
UXIN, MRIN two perfect examples of short squeezes.
They both had good news but they spiked one day
and then not much.
Then on day two, day three, day four,
they really began spiking.
Not because everyone was excited about the news
that were already out but because the early shorts
were getting squeezed.
So start looking three, four, five, six days
in at a big percent winner and seeing, wait a minute,
is it up too much?
If it's up too much it's probably a short squeeze.
And that way you start looking
at things a little differently.
You do start to look at short selling
but not on day one, not on two of a big spike
give it some time, have some patience.
Don't be like most short sellers
don't be like most newbies who are looking
to make money all the time.
In a bear market there are less money making opportunities.
It's not the end of the world.
The market will rebound, I am pretty sure.
I don't know exactly when I don't know
how back the bear market gets.
Don't bother asking me that.
But you need to start thinking a little differently.
In bold markets I don't just case anything
I wait for big panics to dip buy
because then you usually have dip buyers
and you have short sellers who are covering
so having patience, thinking of myself as a retired trader
and being patient enough to wait for better opportunities
gives me better odds of success.
In a bear market always looking to short
but not jumping at the short immediately
not chasing shorts like too many do.
That gives you better odds.
It's really a game of patience.
Because obviously I know you want to make money,
I want to make money too but if you want to make money
too bad and you start forcing trades like most traders do,
you will not make money, you will make losses.
You will lose like 90% of traders do.
Because they're always looking for money
they're always looking for hot picks, they want action.
Don't look for action, okay?
Often times the best trade is no trade.
And in a bear market that's especially true.
Be safe, wait for the opportunities to come to you.
Trust me they will because most people don't study
most people aren't like you, they're not meticulous
they want it all right way and you shouldn't try
to change them, you should thank them for their ignorance
and their gambling addiction and then take advantage of it
because early shorts, early longs create opportunities
if you're patient.
Leave a comment just below if you like what I'm saying.
And if you promise to be patient
that way you can profit too.
Hey, Tim Sykes, millionaire, mentor, and trader,
thank you for watching my videos.
I hope that they've helped you.
I want to share everything I've learned over the years.
You can check out more videos right over there
and also click subscribe so you can watch all
of these videos, get that knowledge
and become my next millionaire student.
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