Timothy Sykes’ Penny Stocks Trading Program – Is it for you?

by Darwin on February 22, 2020

IntroductionTimothy Sykes is a successful investor with a unique approach to the stock market. He focuses primarily on penny stocks trading as a vehicle for driving profitability in his financial portfolio. By using the power of the Internet, Sykes explains that ‘anybody can implement winning trading strategies.’ The Internet is peppered with a variety of self-professed gurus claiming to offer these types of services to aspirant traders. Many of them function as scams, enriching the owners at the expense of unsuspecting clients. 

The Timothy Sykes story is an interesting one in that the lessons learned are legitimate, and the outcomes are authentic. Timothy offers hundreds of complimentary trading videos, in addition to paid course material. The coursework is easy-to-follow and if the taught techniques are applied, results are certainly possible. You can read more in this Timothy Sykes review. 

Making Money Off Penny Stocks by Studying Key Market Drivers 

The story of Timothy Sykes dates back to the 1990s when he had an opportunity to invest his bar mitzvah money his own way. His parents deferred to him and wanted him to learn a lesson about the value of money. He claims that by his senior year of high school he had transformed his bar mitzvah money into well over $100,000, and by the end of freshman year, he was approaching $1 million. He focuses his investment expertise on penny stocks; those financial instruments that are typically valued under $5. According to Sykes, the main reason why he gravitated towards lower-priced penny stocks is because there was so much more potential to be gained from them. 

Typical blue-chip stocks like Google, Facebook, Comcast, and others are performers, but there is little to be gained from stocks in their mature stage. For this reason, Sykes focused on little-known penny stocks which nobody talks about on the major media outlets. These companies typically offer a handful of products, if at all, and many are in the development stage. By investing in these companies, timing it right, and making calculated decisions, he, like so many of his followers was able to generate significant profits in the market. Unfortunately, the majority of penny stocks are not well known, but he evaluates them based on their percentage gains. 

A few lessons he reiterates as part of his trading strategy are as follows:

  • Don’t believe what people are saying about these companies
  • Read up about these companies and who is interested in them
  • Momentum can dramatically increase the price of penny stocks 
  • Penny stocks are volatile and that’s how to generate big returns 
  • Temper expectations on penny stocks that are not actively traded
  • Short-selling penny stocks is an effective way to make money off them
  • The pathway to millionaire status as a penny stocks trader is study in spreadsheets
  • Conventional methodology will not make a person rich, but contrarian strategies can
  • Most penny stocks don’t turn into high-value companies but there are a few instances
  • Don’t focus on EPS, ROI, Revenue, Profits et al with penny stocks – they are irrelevant 
  • It’s not necessary to trade penny stocks daily, you have to wait for something that’s hot
  • Short-selling penny stocks is legal on the proviso that you can find a broker with shares to short

Where are these Penny Stocks that Timothy Sykes Trades?

There are many reputable brokers available for trading penny stocks. These include several big-name brokers like Fidelity, TD Ameritrade, Charles Schwab, Interactive Brokers, et al. Clients are advised to conduct the requisite research into the right broker, before simply opening a penny stocks trading account. The top brokers offer $0 per trade, with no commissions when trading online stocks. It’s important to look out for flat-free trade commissions. 

Since penny stocks are traded OTC (Over the Counter), they cannot be found on a mainstream exchange such as the NASDAQ, the SPX, or the Dow Jones. Typically, a company whose stock drops below the $1 threshold will get delisted and it becomes a pink sheets security or OTCBB. Throughout it all, it’s worth emphasizing that penny stocks are inherently risky, and fraud is rampant. Research is a powerful tool to employ to cut costs and deliver returns. 

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