I hit $13 Million dollars in profits at 26 years old. And I’m proud of what I’ve achieved.
But I definitely made a lot of mistakes along the way…
I learned one of the most important rules of my trading career the hard way.
It’s a rule that most of you never even think about, because most of you aren’t trading big enough to need it…
But if you want to trade real size someday, you need to understand this first…
Because by the time you need it, it’s already too late to learn it.
If you’re ready to trade big like me, listen up…
My mentor, Tim Sykes, turned $12,400 into $1.65 million in under three years.
And since then, he’s helped 50 traders, people just like you and me, hit seven figures and become millionaires.
But here’s what Tim will be the first to tell you. The market has changed. What worked five years ago doesn’t work exactly the same way today. You have to adapt.
That’s why today and tomorrow, he’s hosting a 2-Day Millionaire Formula Bootcamp.
One hour a day. A few high-conviction trades per week. Small gains that can compound fast.
Guys, it’s not complicated. And it works.
It’s not too late to register, but hurry up. Registration closes today at 1:30 p.m. ET.
The Rule That Changed Everything
When I was scaling up, I noticed something…
The bigger I got, the more my trades started working against me in ways they never did before.
I’d enter a position, and yes, the stock would move. But not in my favor. Against me.
My read on the trade wasn’t wrong. My size was wrong.
That realization led me to one of the most important rules I trade by to this day.
Never be more than 1% of the daily volume.
It sounds simple. And it is, but you don’t even think about it until you’re suddenly trading big…
And then it matters.
Here’s what it means in practice…
If a stock trades 100 million shares in a day, my max position is one million shares. That’s my ceiling. I don’t go above it, no matter how good the setup looks or how strong my conviction is.
Why This Rule Exists
When you’re trading small size, liquidity isn’t something you think about. You buy, you sell, the market barely notices you were there. You’re a small fish in a really big pond.
But when you start trading real size, everything changes, and now you’re the shark.
Every order you put in moves the market. Every exit you take has to find a buyer on the other side. And if you’re too big relative to the daily volume, that buyer might not be there when you need them.
That’s when the damage happens.
I know because I’ve seen it firsthand. I’ve been in positions where I had too much size, and I couldn’t get out where I wanted to. It was like being in a room with no doors.
The stock wasn’t moving against me… I was moving it against myself. Every sell I put in pushed the price lower. I was essentially fighting my own exit.
That’s a liquidity problem. And liquidity problems at size can turn a manageable loss into a catastrophic one fast.
How I Applied the Rule
When I was at my peak, I was watching two things on every single trade: The bids and the asks.
Specifically, I wanted to see big size traded on both sides of the market before I committed. That told me there was real liquidity in the name. That I could get in and, more importantly, get out without moving the market against myself.
I also paid close attention to the time of day. A larger size works best in the first and last hours of the session, when volume is highest.
I was never trying to hold massive positions through midday when volume dries up, and slippage gets ugly. That’s how you get shaken out of a good trade just because the float is thin at the wrong hour.
The 1% rule stopped me from letting conviction turn into recklessness.
What This Means For You
If you’re newer and trading small size right now, this rule might not feel relevant yet.
But I’m telling you anyway.
Why?
The habits you build now are the habits you’ll carry into bigger size later. Traders who never think about liquidity when they’re small tend to get wrecked by it when they finally get big.
Shorten your path to big trading with Tim Sykes’ formula.
Start thinking like a size trader before you are one.
Watch the bids and asks. Notice how stocks trade at different times of day. Pay attention to whether volume is real or thin.
Build that awareness into your process now, so when the day comes that your size actually matters, you’re already thinking the right way.
The market will take your money in ways you never expected if you let it.
Liquidity is one of them.
Know the rule before you need it.
– Jack Kellogg
