I had to learn this the hard way.
And I believe it’s one of the most important lessons anyone can learn…
Perfection is not the goal.
I will never be a perfect trader.
And you will never be a perfect trader, either.
Instead, adapt and optimize.
Grow your knowledge account and try to get a little better every day.
Too many traders just try to swing for the fences.
They might hit a home run once in a while.
But in the long run, it never ends well.
Why No Great Trader Swings for the Fences
This is one of the most difficult lessons for newbies…
Swinging for the fences will keep you broke.
You don’t need to worry about catching the bottom of a move.
Likewise, you’re not trying to catch the top.
The goal is to take a good piece, a good section of the move, so you can lock in gains.
Look, I have good trades and bad trades. But with every single one, my goal is to…
Take the Meat of the Move
I see a lot of misinformation and misconceptions lately.
So, let’s take a look at one of my trades to clear things up.
Xiao-I Corporation (AIXI) spiked several times in the past two weeks…
Source: Stocks To Trade
AIXI 10/1/26 to 10/9/26, 1-minute candles, former runners can run again.
AIXI made it all the way to the $4s in premarket trading on Tuesday (October 6).
But you can see on the chart how it trades. It can spike in a hurry, but it also comes down in a hurry.
You have to try to understand how these stocks move.
It’s not just “Oh, this is a good company. This is a bad company.”
Watch the price action and learn how they move.
That’s how I was ready for this premarket trade on Thursday (October 8)…
Source: Stocks To Trade
AIXI 10/8/26 premarket trade based on understanding price action.
You don’t want to chase a stock like AIXI.
If you chased that big spike just before 7 a.m. ET, you would have been down.
What was I thinking about before entering this trade?
• 7 a.m. is when a lot of retail brokers open. If you’re looking for big moves, they usually come when there’s more volume. So, 7 a.m. is a key time.
• It was holding the round number at $2. I always look for zones of support.
• AIXI showed me that it could spike fast. (It happened several times over several days.)
• It formed a higher low.
Not by much, but when it tried to spike before 7 a.m. and came back down, it was enough to give me confidence.
• I thought it could reclaim VWAP. Or at least test it. (VWAP was in the $2.30s at the time.)
So, I made an educated guess that it could hold the support level and spike.
But here’s maybe the most important part of my trade…
When It Hits Resistance, Lock In the Single
HODLers with “diamond hands” usually end up broke…
Just lock in the single, okay? That’s what I mean by taking the meat of the move.
Hold and hope is not a strategy.
Remember, this is a marathon and not a sprint. Stay in the game with these three steps:
1. Focus on the process.
2. Cut losses quickly (rule #1).
3. Learn to take the meat of the move.
If you can set those three ideas in your mind (and follow them)…
You CAN break free with trading.
Now go study. HARD!
Cheers,
Tim Sykes
Editor, Tim Sykes Daily
P.S. One of the things I LOVE about trading is that you can do it from anywhere.
Any guesses where I went for my weekend adventure?
I’m flying to a new place I’ve never been … Share your guess with me at [email protected].
Always push yourself!!!
The world is an amazing place. Get out there and explore!
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