Tim Grittani is a 7-figure day trader who started out trading penny stocks with just $3000 and managed to grow his account to just under $3 million in a relatively short period of time.

Tim Grittani’s Background

Tim was a Finance major in college when he quickly figured out the only part of the course that he actually liked was the part that taught the basics of the Stock Market. This led him down the path of researching how the market really worked and how he could make money from trading.

He eventually started trading in 2012 when he first ventured into Penny Stocks via the Timothy Sykes’ chat room. He would come to realize there there was a lot of manipulation in the Penny stock game and decided to use the obvious manipulation to his advantage and started to spot a few key setups that would pay out again and again which gave him some early success.

However, he eventually hit a “rough spot” and lost a bunch of money. It was at this point that he switched to buying and short selling the Nasdaq listed pumps which remains his niche/specialty to this day.

After the he made the switch to listed stocks, he struggled for a bit but then he made the decision to start using a trading journal to collect data and track his mistakes. The close analysis of the data led him to make some key changes and that is when he became profitable.

Tim Grittani’s Trading Style

Tim’s trading style is based on identifying and focusing on specific niches in the market. He does not believe in following the hype or trading based on what other people are saying. Instead, he focuses on trading the charts and price action.

Tim is also a big believer in risk management. He has learned from his mistakes and developed a trading plan that helps him to avoid making the same mistakes again. He emphasizes the importance of cutting losses quickly and not getting emotional about your trades.

Here are some of the key principles of Tim’s trading style:

  • Focus on liquid and volatile stocks.
  • Identify and focus on your niche.
  • Don’t believe the hype, trade charts and price action alone.
  • Take responsibility for your own trading.
  • Be patient and consistent.
  • Learn from your mistakes.

He defines his trading edge as his ability to identify and focus on specific niches in the market. He believes that this is the most important factor in his success as a day trader.

He believes that the best way to make money is to develop your own trading strategy and stick to it and stresses the importance of being patient and disciplined. Tim believes that it takes time and effort to become a successful trader and that it is important to learn from your mistakes and not give up on your goals.

Tim Grittani’s Exact Trading Strategy

One of Tim’s greatest strengths as a trader is that he is equally comfortable going long and short and often switches between the two seamlessly.

For his Long trades, Tim uses the Multiday Breakout strategy.

Step 1-Stock Selection: Identify potential multiday breakouts. This could involve looking for stocks forming chart patterns, such as flags or triangles, or trading near key support or resistance levels.

Step 2Volume Confirmation: pay attention to trading volume, especially when looking for breakouts. A substantial increase in trading volume can be a confirmation signal for a breakout.

Step 3Risk Management: Grittani is known for emphasizing risk management. This includes setting strict stop-loss orders to limit potential losses and managing position sizes based on the risk-reward ratio.

When it comes to his Short trades, here is the process he uses:

Step 1- Stock Selection: This involves looking for overextended stocks, those with negative news, or those showing signs of technical weakness.

Step 2Borrowing Shares: Ensure that the stock is available for shorting and be aware of the fees associated with borrowing shares.

Step 3-Execution: Execute the trade in a timely manner. Things will often move quickly, and delays in execution can impact the effectiveness of the short trade.

Step 4- Risk Management: implement you risk management plan, including setting stop-loss orders to limit potential losses. Remember, short selling comes with the risk of unlimited losses if the stock price rises significantly, so risk management is crucial

Tim Grittani’s Trading Philosophy

“Trade the ticker, not the company” in other words, don’t get caught up with unnecessary data or market noise. In most instances, the price action of the stock is going show you exactly what you need to know.

His larger trading philosophy is also grounded in conviction and risk management. As he has stated many times: ” Trading is about having two things: Strong conviction that the move will go in your favor and a clear risk level to use in case you’re wrong. It’s not about calling it right every time.” 

The Trading Books That Tim Recommends

He doesn’t recommend any particular books simple because, as he admits, he hasn;t ready many trading books at all.

However, he says that if there any books that he would read they would have to be books about Trading Psychology because this is by far the most important aspect of trading.

The Trading Platform/Broker That He Uses

Tim has repeatedly stated that you need to have good tools for executing your trades and the most important tool is your broker. In this regard he has recommended using Speed Trader, Cobra & E-trade.

How Get In Touch With Tim Grittani

Twitter/X : @kroyrunner89

Website & Blog: https://tradetheticker.blogspot.com/

Editor’s Note: This feature was contributed by Ryan Thibault, Stocks & Futures Trading Magazine Contributor

Also, If you liked this feature, you can check out other strategies from featured traders like Kristjan KullamagiModern RockAndrea CantoDr David PaulMichael HuddlestonMark RitchiePatrick Walker , Dan Irish and many more