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#6253-6256: How NOT To Take Big Risks And Risk Big Losses

This is an important video lesson on the risks of shorting first green days on Fridays, especially on low floats...my bad for coming down too hard on students who partake in this dangerous strategy, but I wouldn't feel right if I didn't use my 20+ years of experience to help newbies avoid potential disaster. Sometimes I care too much, but on the flip side, NOBODY who is my student should EVER blow up shorting these kinds of stocks and I'll continue getting daily emails from non-students and ex-students who break my rules, lose most of their account, everything, or sometimes even more than they have in their account...they will get very introspective on Twitter with what they did wrong, but they could've avoided all of that if they didn't play with fire in the first place and for that it takes mentorship as too many newbies don't realize the risks they take in order to make their tiny gains, mistakenly believing they're on the right track when in reality they're one short squeeze away from blowing up.

Posted Jan 31, 20 1:01 PMbytimothysykes

Newsletters TimChallenge, TimAlerts, Pennystocking Silver, Millionaire Masters Program, Pattern Pro

Categories 5 Lesson Friday, Basics, Classic Lessons, Trading Mistakes

Tickers LLIT, DRYS

Views 4611 / 58/ 188 (Avg 4.5 stars, 201 ratings)

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MMGolfJan 31, 20 12:14 PM

I promise to be safe

TonyG1Jan 31, 20 12:20 PM

0Gr33d0F3arTikTokTraderJan 31, 20 12:21 PM

promise to be safe! Thanks Tim

CosmoBhattJan 31, 20 12:22 PM

I promise to be safe!

toure99Jan 31, 20 12:22 PM

I promise to be safe!

cstaff37Jan 31, 20 12:23 PM

I promise to be safe!

RocUWorldJan 31, 20 12:23 PM

I promise to be safe.....

TonyG1Jan 31, 20 12:23 PM

Thanks Tim for the danger video. Can never hear it enough to Stay Safe! Sorry about all of those replys I have a stick keyboard lol

redwagonriderJan 31, 20 12:23 PM

I PROMISE TO BE SAFE

CrazyWillowsJan 31, 20 12:25 PM

I promise to be safe, good lesson Tim and was good to get the lesson live, if I ever break rules you have full permission to come down on me as I know it is also a judgement for your future students..

sephiroth3425Jan 31, 20 12:25 PM

I promise to be safe and not add to losing positions.

MannyAFVetJan 31, 20 12:25 PM

Thanks Tim.. I promise to be safe..I don't short yet, but same principal applies to buying/going long. Don't change, your style is what the over whelming majority of us appreciate.

ArjJan 31, 20 12:26 PM

Promise to be safe

tommy888gJan 31, 20 12:26 PM

I saw $ SES in October. I think it's nice example of 2 days squeese. i promise to be safe.

MoonShotJan 31, 20 12:27 PM

I promise to be safe. Thanks Tim. Tough love works.

virenKJan 31, 20 12:28 PM

After doing 3 months trading I am fully agree safety first. You are absolutely right Tim

chrisw8987Jan 31, 20 12:29 PM

I promise to be safe

PebblesJan 31, 20 12:31 PM

I promise to be safe. I watched SES on 14 Oct go from 7’s to mid 20’s in one day....no way I’m shorting until I get the long side and understand market much better.

Mikeb132Jan 31, 20 12:34 PM

I promise to be safe !

Seaside66Jan 31, 20 12:38 PM

I promise to be safe.

BullishEarthwormJan 31, 20 12:44 PM

"And didnt use them!!" hahahaha

skatermdwJan 31, 20 12:45 PM

Thank You Tim !!!! that is the plan alway!!!!

JenJenJan 31, 20 12:46 PM

I promise to be safe..That's why I love you Tim and your lessons have taught me so much...

tortuga8202002Jan 31, 20 12:46 PM

Thank you! I promise to be safe

tortuga8202002Jan 31, 20 12:46 PM

Thank you! I promise to be safe

P70KCJJan 31, 20 12:50 PM

That is definitely the most real video lesson i've watched so far. And I totally get why you come down hard on your students now. Anyone who doesn't listen to this kind of advice is either crazy or a complete gambler. Good video lesson Tim.

BullishEarthwormJan 31, 20 12:57 PM

thanks for the warning. great lesson. i promise to be safe.

Nikolay98Jan 31, 20 1:04 PM

I promise to be as safest as I can! Nice lesson, thank you Tim! :)

ThomaeJan 31, 20 1:07 PM

I only jumped on as a student (this week) to have a teacher that sets boundaries for their students. When I do start trading I will be safe! 😉

MOKIJan 31, 20 1:44 PM

good lesson Tim, sometimes tough love is what is needed, I promise to be safe

LWeisfeldJan 31, 20 1:48 PM

I promise not to short on Friday or any day because i could lose multiple times the $ i put into the trade and might not be able to follow Tim's rule #1 due to the speed of the market or SEC action

fletcher96Jan 31, 20 1:52 PM

I promise to be safe

emintJan 31, 20 1:54 PM

I promise to be safe!

mrbean1611Jan 31, 20 1:55 PM

Better safe than sorry! Today was the first live webinar i've ever seen (I just joined challenge) and wow haha. What a way to wake up!! I look forward to learning from you and all your realness!👏 Thank you Tim!

av1Jan 31, 20 2:09 PM

I will be safe

itsmarybethJan 31, 20 2:10 PM

I promise to be safe. Pretty certain it will be a long fucking time before I'm shorting.

MikeySaghbiniJan 31, 20 2:12 PM

i promise to be safe!

DThaSavageJan 31, 20 2:18 PM

#FutureMillionaire

RoccoJan 31, 20 2:27 PM

Good lesson Tim, but they won't listen and I really don't want them to. I don't think you need to qualify with Fri's, there is NO safe time to short a low float. Somebody is going to eventually see it and go for it. Remember BREX!

thuanguyenabJan 31, 20 2:31 PM

I promise to be safe! Thanks a lot Tim.

TheGManJan 31, 20 2:41 PM

I am probably your newest newbie! I hear you!

451kpkJan 31, 20 2:55 PM

I promise to be safe, Thanks Tim!!

PaulaNYCJan 31, 20 2:56 PM

Thanks Tim - safety first!

AnigaiJan 31, 20 3:04 PM

I'll emulate success, if you didn't short for the 1st year or two then i don't "have" to. Shorting is in the advanced section of The Complete Penny Stock Course for a reason after all.

wraithJan 31, 20 3:06 PM

It's not worth the thought, promise to be safe

PhillipHamptonJan 31, 20 3:07 PM

I promise to be safe

HughNguyenJan 31, 20 3:24 PM

I promise to be safe. Thanks Tim

JMaasJan 31, 20 3:27 PM

I PROMISE TO BE SAFE

AndrooJan 31, 20 3:34 PM

Thank you Tim, very cool!

idania6328Jan 31, 20 3:35 PM

I promise to be safe

GumpJan 31, 20 3:41 PM

I promise to be safe. And so far, I have been. :)

RomanTradesJan 31, 20 3:57 PM

promise to be safe

CamDoleJan 31, 20 4:35 PM

I promise to be SAFE.

arturonavarroJan 31, 20 5:48 PM

I promise to be safe.

stefano321Jan 31, 20 6:47 PM

I promise to be safe, thank you

JennyPenny50Jan 31, 20 7:00 PM

I promise to be safe. Thank you so much for all your hard work & caring for us. :-)

ImadJan 31, 20 7:00 PM

Thank you Tim. I promise to be safe.

CippoNK1KJan 31, 20 7:06 PM

I promise to be safe. That said, Tim Sykes, today was a little over the top harsh. I have to say, it’s hard to stay on your webinars when you go ballistic at new students. We really need your expertise and communication but going bat $#/+ ballistic is not productive for the majority of us who dedicate time to be with you (at 6am pst).

DrogomirdrogonJan 31, 20 7:18 PM

Lol! This is a funny video Tim. The emotions you use to get your point across hit home for me. I’m happy to be a challenge student. If I had read that in a book about short sellers blowing up I don’t think I would have believed that could happen. Thanks Tim. I will be safe.

rabbit196568Jan 31, 20 7:28 PM

I promise to be safe. Good to remember, thanks Tim

timothysykesJan 31, 20 7:38 PM

@CippoNK1K yup it was my bad, but I'd rather be too harsh than not harsh enough, gotta learn when you take trades that can lead to blowing up as too many shorts do lately

JoshRiversJan 31, 20 8:45 PM

Working on my discipline from last year! I promise to be safe

rmorganJan 31, 20 8:54 PM

I promise to be safe. Trade scared.

redredwine_12Jan 31, 20 9:03 PM

I promise to be safe. Great lesson. Thanks Tim

adriancuadrado289Jan 31, 20 9:21 PM

I promise to be safe.

NJbill61Jan 31, 20 9:34 PM

I promise to be safe! Thanks Tim!

oldnewbyJan 31, 20 11:09 PM

Thanks for your teaching on disipline and safety. As a guy born in 1954 I dont mind the talk behind the wood shed. I need it. I am having a time working on me. It is going to be a while before i would trust myself short selling. Scares me just to think about it. Cheers

missdislaJan 31, 20 11:18 PM

MissDisla promises to be SAFE!!😷👍

TradingMamaJan 31, 20 11:22 PM

I promise to be safe!

Yeong32Feb 01, 20 12:12 AM

I promised to be safe!

timothysykesFeb 01, 20 12:54 AM

@oldnewby gooood, safety first!

GooniesTrader81Feb 01, 20 1:07 AM

I promise to be safe and follow rule #1.

DarbsFeb 01, 20 1:12 AM

This morning’s webinar had more F-bombs than an Andrew Dice Clay set BUT it was a great warning for me. I haven’t shorted yet and won’t until at least going through your DVD on that. I promise to be safe!

FnmaniacFeb 01, 20 2:13 AM

I promise to be safe

Arend050Feb 01, 20 4:23 AM

I promise to be safe!

DoesItFloatFeb 01, 20 4:39 AM

would be nice to have a video lesson where you actually teach us something rather than just berate short sellers for the hundredth time

TZDaytraderFeb 01, 20 5:02 AM

Thank you Tim. I’m learning so much.

TZDaytraderFeb 01, 20 5:03 AM

I promise to be safe!

ScottalanFeb 01, 20 6:21 AM

I PROMISE TO BE SAFE!!!

BottrellFeb 01, 20 6:22 AM

I promise to be safe!

brianpfentimanFeb 01, 20 6:46 AM

I promise to be safe

IrpimojoFeb 01, 20 6:51 AM

I promise to be safe!

royhdevriesFeb 01, 20 7:53 AM

I promise to be safe !

Zooe29Feb 01, 20 8:14 AM

I promise to be safe

stj_28Feb 01, 20 8:54 AM

Thanks for this lesson. I haven’t shorted yet, but it’s fantastic to be given this lesson during this crazy coronavirus period.

Lx888Feb 01, 20 9:07 AM

Tim, I think you should come down hard on your students and if they get butt hurt so what and move on because these are lessons to learn. Believe me it help me.

PiranhaJ03Feb 01, 20 9:48 AM

I promise to be safe

KariFeb 01, 20 11:36 AM

I promise to be safe, good lesson and a reminder, thanks Tim!

YonderFeb 01, 20 12:29 PM

I promise to be safe. The fact that you took the time out to try and correct a dangerous viewpoint says a lot about you. It was a good lesson for all us newbies. We definitely don't know all these risks, and help make that crystal clear for people like me still that's still learning the ropes. Thanks for these lessons.

timothysykesFeb 01, 20 12:36 PM

@Yonder yup, always gotta protect newbies from themselves and their naivety

bhaskinsFeb 01, 20 1:25 PM

I promise to be safe, however, when I watch you with your stock charts and I bring up the exact stock chart, mine looks so different from yours so I get confused, how can I get around this. I use thinkorswim

LucianaSantosFeb 01, 20 1:25 PM

I promise to be safe

StickerJonFeb 01, 20 1:36 PM

I promise to be safe! Being tough helps people reevaluate what may have caused that response and will hopefully stand out and make people remember that moment as they further their education

KarenBoughanFeb 01, 20 1:48 PM

Thanks, Tim. Good lesson. I don’t short but have been working on trying Not to add to positions when they go against me. Rule #1. Most important. Not always easy to follow. I’m glad you care about your students.

Stockpool21Feb 01, 20 2:18 PM

I promise to be safe

CortesFeb 01, 20 2:23 PM

I promise to be safe Tim!

GrimesFeb 01, 20 2:37 PM

"imma make 20 grand" --- now you're down 80 thousand lmaoooo. classic Sykes

sunny16Feb 01, 20 3:12 PM

Good thing alot of times the brokerage has no share to short. I promise to be safe.

freedomjude29Feb 01, 20 4:58 PM

You really scare the shit out of me about shorting! There’s, so many times I really wanted to short and I couldn’t get shares and the stock did what I thought it would do, but I have a hard enough time cutting loses now! I’m honest, I’m just going to keep to me little dip buying,even though I’ve been buying false bottoms 😔 I’ll Adventurely get it! I’m not going to quit! $$$

LizLeleFeb 01, 20 8:02 PM

Thanks!

AndraFeb 01, 20 9:37 PM

I promise to be safe!

DeanLucasFeb 02, 20 5:28 AM

I promise to be safe! Thanks for the lesson Tim.

TheBeastMarketFeb 02, 20 9:45 AM

I promise to be safe

Daniel_CFeb 02, 20 12:04 PM

I Promise To Be Safe!

johnsavageFeb 02, 20 2:22 PM

I promise to be safe!

Kauai2020Feb 02, 20 2:32 PM

Promise to be safe!

Kauai2020Feb 02, 20 2:50 PM

Great lesson! Great apology. Thnx for watching out for us!!

wildwesFeb 02, 20 11:44 PM

I promise to be safe

JEstradaFeb 03, 20 1:24 AM

I promise to be safe thanks tim

timothysykesFeb 03, 20 1:33 AM

@Kauai2020 my pleasure!

2TheMoonFeb 03, 20 1:39 AM

I have taken that risk, and never again! I got out lucky and I promised and promise to never average up again when shorting, always cut losses and I promise to be safe.

drndvn34Feb 03, 20 1:50 AM

This profession is unique in that it is completely about risk management - If you don't know your risk / reward going into a trade then you will blow up.

mospadmoreFeb 03, 20 5:30 AM

Thanks Tim, good video. I will be safe.

navintikaFeb 03, 20 5:44 AM

Good video Tim, I am always learning from all your videos. Bottom line is there is no short cut to success. Only hard word in terms of education will help you make a better trader and risk manager. A big thank you and to all your student instructors for this great education

RD52Feb 03, 20 5:49 AM

Thanks Tim. I promise to be safe.

allmyloveFeb 03, 20 7:32 AM

I promise to be safe.

Tommy_DFeb 03, 20 8:11 AM

This has probably been your best video lesson in the last year. Absolutely amazing examples of the risks people take when short selling. I understand that there is a lot of money to be made in that style of trading, buy holy cow can you get screwed over if the stock begins to squeeze. While longing may not be "sexy" and it can come with it's own risks you never can lose more money than you put in to the trade. Like all your lessons teach, I promise to be safe.

JediOfWallStreetFeb 03, 20 8:27 AM

roger that. I promise to be safe. Thanks Tim.

BloodhoundFeb 03, 20 8:57 AM

will be safe. Tim, don't quit caring. It's appreciated. Discipline isn't pleasant, but it makes one better. Hebrews 12:11

GiorgioMarinoFeb 03, 20 9:51 AM

Thanks Tim!

legheimFeb 03, 20 1:00 PM

@timothysykes

legheimFeb 03, 20 1:02 PM

@timothysykes. Thank you Tim. Very Very helpful

jaybyrdFeb 03, 20 1:19 PM

promise to be safe.

slo841Feb 03, 20 1:46 PM

I promise to be safe

KarenBoughanFeb 03, 20 2:31 PM

I promise to be safe

piscott0306Feb 03, 20 2:41 PM

Video watched. Muchas Gracias.

piscott0306Feb 03, 20 2:41 PM

I promise to be safe.

SheMoonFeb 03, 20 3:06 PM

I promise to be safe 🙏 Amazingly wonderful video lesson.

Skinny13Feb 03, 20 5:09 PM

o promise to be safe. thanks

AlexSimpsonFeb 03, 20 7:20 PM

I promise to be safe

jeffalleyFeb 03, 20 7:31 PM

Thanks Tim!

TessaLampingFeb 03, 20 11:05 PM

I PROMISE TO BE SAFE!!!!

reverselongFeb 03, 20 11:18 PM

great lessons. i remember KBIO $DRYS they will go down in infamy!

mikebrownFeb 03, 20 11:59 PM

I promise to be safe! Thank you Tim

BigDreDay26Feb 04, 20 7:00 AM

I promise to be safe.

ElleDianeFeb 04, 20 8:22 AM

I promise to be safe.

WindwalzerFeb 04, 20 11:12 AM

I actually was watching the live webinar while you had your discussion with the student. You are looking out for our safety, you're the instructor and you're trying to tell the student how to get out of a bad situation. It's not an easy place to be in. Thank you for caring so much. I promise to be safe. Everyone of these videos, webinars, DVD reiterate the importance of protecting ourselves and saving our accounts for another day.

mandrewFeb 04, 20 1:38 PM

I promise to be safe, and thank you Tim.

bdriesFeb 04, 20 3:49 PM

I promise to be safe.

therealmcdougalFeb 04, 20 9:23 PM

Awesome video, thx Tim. It stilI blows my mind how many newbies I see shorting in the challenge. promise to be safe!

MrBobliFeb 05, 20 8:00 AM

I promise to be safe!

castlemainFeb 05, 20 6:30 PM

Promise to be safe. I'm thankful that this particular video was my first ever.

VixenFeb 07, 20 4:24 PM

@timothysykes i promise 2 b safe

LGuerinoFeb 08, 20 5:54 PM

I promise to be safe!

jadiezFeb 09, 20 12:40 PM

There are no words to describe the value of this video. Once again thank you very much @timothysykes for your continued contribution to this community!!!

timothysykesFeb 09, 20 3:47 PM

@jadiez awww thanks, you're too kind!