Trading penny stocks is one of the best ways to make money. With a relatively small investment portfolio, you can make some pretty decent returns. On the flipside, though, the high levels of leverage can boomerang and you end up losing your entire investment. It all takes a few wrong moves to find yourself on the receiving end.
Enter Timothy Sykes, a guru of sorts, lauded by the likes of CNN and Forbes as the master of penny stocks. Tim claims to offer proactive assistance to budding traders who would like to maximize their winning streaks. However, in order to be a part of his ever-growing premium tier of traders, he requires you to fork out a few dollars. So, the question is, does investing in any of Timothy Sykes’ programs guarantee any success? What’s the ROI? We interrogate.
Who’s Timothy Sykes?
For starters, Tim Sykes is considered one of the best penny stock traders in the industry today. On his blog, he claims to have become a self-made millionaire at the tender age of 21 trading penny stocks. In fact, he is best known for turning $12,415 he received in bar mitzvah gift money into $1.65 million. While he is known as a penny stock trader, he is also an entrepreneur in the day trading community.
Besides, he has founded an empire of great websites that are built around providing learning materials for traders and chat rooms. He has founded websites like TimothySykes.com Profit.ly, and Investimonials where traders share their trades and performances in a verified manner. Indeed, Tim generally seems to operate on the theme of creating transparency in an otherwise rotten world of online trading.
Profit.ly is a trading platform that provides users with trading chat rooms, trading courses and connects traders to the trading guru’s products. Investimonials, on the other hand, allows people to search for reviews of different trading products like newsletters, brokers, blogs, commentators, and websites.
Sykes also created a hedge fund during his senior year and a scholarship for passionate and talented Tulane students, faculty and alumni. Besides, he has been featured in various business and financial media outlets. Also, as a strong advocate of trading education, he claims to have over 3,000 students in 70 different countries.
Actually, he is reported to be one of the first penny stock trader guru to start offering online courses. He has also created several newsletters to cater the needs of beginners as well as advanced traders including Tim Alerts, Penny Stocking Silver, and Tim’s Millionaire Challenge.
What is Tim Sykes’ Trading Strategy?
Sykes claims to have made his initial wealth by shorting penny stocks. This is because he was leveraging on the stocks going down as he observed that a good number of penny stocks that skyrocketed up from 100 to 1000% in a short time, would later end up returning to bottom prices.
According to Tim Sykes, the markets are full of penny stock frauds and shady companies that usually engage in some sort of paid promotion schemes and don’t offer full transparency. These not-so-good practices are what eventually drive stocks up and later cause them to crash back down.
However, Sykes states that the best way to turn a small investment into a big one is by learning the best strategies needed to trade such extremely volatile stocks. And the best trading strategies are those that fit your personality.
So what is so unique about his trading strategy? His strategy is mainly rooted in technical analysis in which he makes use of stock charts to arrive at almost all his trading decisions. In addition, he pays focus to elements like news catalysts, paid promotions and earnings.
For instance, in a situation where a stock runs just because of a paid promotion, Tim might come into conclusions that the company is a fraud and most probably the share prices are likely to drop once the promotion comes to an end. However, with so many investors and traders catching on to his trading strategy, it is becoming harder to find some shares to short of stocks.
Timothy Sykes Services /Programs
1. Chat room
Timothy Sykes runs a chat room through the Profit.ly website together with other moderators including Michael Goode, one of his millionaire students. In his chat room, members are able to see live trade alerts by Timothy or his moderators. However, Sykes is not active in the chat room. Instead, he spends most of his time traveling, doing interviews and building his empire. So for new traders who would like one-on-one time with Sykes, they are likely to be disappointed.
In addition, he alerts his subscribers about his trades in the chat room through phone alerts and emails so they can take action on time. Depending on how quick you are at taking action once you receive the alerts, the alert feature can either be good or bad. For example, if you catch the alerts immediately, you can trade similarly to Sykes but if you’re late, it may be hard to find a good entry point. Members are however warned against copying Tim’s trades and instead seek to understand the psychology behind his decisions.
Tim Sykes chat room also gives traders the option to block chats from some traders which is a nice addition because the chat room is always filled with new traders who make it quite noisy.
2. Trading Courses
Besides growing his million dollar portfolio, Sykes is passionate about teaching other traders and investors his trading methods. He claims to have groomed a lot of traders to be millionaires like him. His trading courses are available as live streaming DVDs which appear to be the standard content-delivery technique for many online trading courses.
From Tim Raw to Pennystocking, Shortstocking, TimTactics, Spikeability, Learn Level 2 and Pennystocking Part Deux, there are plenty of courses to choose from for new traders. Besides, the DVDs contain the basics of Sykes’ style and claim to offer the most bang for your money. According to different reviews, the trading courses seem to be well detailed and comprehensive especially for new traders. Also, Tim offers over 4,000 video lessons which are released weekly. The video lessons are optional but they do offer new traders great value. In fact, most people refer to the video library as a gold mine.
3. Profit.ly Online Trading Platform
Profit.ly is one of Timothy Sykes’ inventions where he shares his knowledge and experience together with his fellow traders. The platform provides traders with trading chat rooms, trade verification, and analysis as well as trading courses. In addition, it claims to connect traders with various trading products in terms of education, signals, and training. Most of the products are beginner friendly but the platform is best suited for experienced traders who are very familiar with all the risks involved in trading penny stocks.
Sykes runs the platform with several verified gurus including Paul Scolardi (Superman), Connor Bruggemann and Matthew (Triforce Trader). All the three gurus have their own subscription-based educational courses, chat room, and alert services and they all mostly focus on small cap trades and penny stocks. However, Profit.ly provides its own subscription packages that enable traders to use the platform, track, and verify trades. All subscription packages allow traders to follow, comment, and message other traders as well as view their stats.
Subscriptions and pricing
Timothy Sykes offers three major subscription plans including Tim Alerts, Pennystocking Silver and Tim’s Stock Trading Challenge. Tim Alerts is the most basic plan and goes for around $74.95 per month but subscribers can save up to 33% by choosing to subscribe annually. Of course, this is a marketing strategy to bring more subscribers on board. This plan offers real-time trade alerts via email and SMS, push alerts, and access to Timothy Sykes chartroom that has over 1000 active traders. Members of Tim Alerts plan can also enjoy real-time trade alerts and 5 to 10 daily stock watch list.
The second plan is the Pennystocking Silver that costs around $149.95 per month to access it. However, Sykes claims you could end up saving up to 28% if you subscribe annually which is a very common marketing tactic used by online product sellers. With this plan, members usually have access to over 5000 video lesson library, video lessons delivered bi-weekly, daily chat room access, 5 to 10 daily stock watch list, push alerts as well as real-time alerts.
Last but not least, we have the Tim’s Stock Trading Challenge which is a premium course and focuses more on creating millionaires. Being a premium course, it is very expensive to sign up and besides, you have to apply for an interview so you can join. As a result, this plan is best suited for serious traders looking to take their income to the next level. The plan includes access to a chance to talk with Sykes himself, chatroom and to private webinars with his millionaire students. In addition, you get to learn about Tim’s secret trading strategies and your success story can be featured on Tim’s website.
- His plans are relatively cheaper for new traders looking to learn the basics
- Boasts immense knowledge about penny stocks
- Has great marketing tactics that seem to attract ambitious traders to the stock markets
- Offers plenty of trading courses to his students
- The PennyStocking Silver package offers a lot of value because of access to video lessons
- Moderators do a good job of keeping things in the chat room organized during market hours
- All his plans provide access to real-time alerts via email and SMS as well as push alerts
- His extravagant lifestyle that he advertises on his Instagram account makes him appear like a fraud
- Tim’s Stock Trading challenge is very expensive and you have to sign up to know its price
- Traders will rarely find him in the chat room except if you subscribe to the Tim’s Stock Trading Challenge
Is Tim Sykes a Scammer or Genuine?
Though there is a lot of hype about Timothy Sykes, there’s no tangible evidence to prove that he is a scammer. However, he seems to have a brash personality so you will either hate him or love him. For instance, his Instagram posts are mostly of pictures of flashy cars, vacations in exotic locations and stacks of money which leads to people thinking he is a fraud.
Just because he sells online trading services does not necessarily mean he is a scam. On the other hand, just because he claims to make millions trading penny stocks, does not mean you are guaranteed to make even a dime. So, if you are thinking of joining his program, don’t do so with high expectations of being his next millionaire student. Your overall success will depend on your determination to learn his trading strategies inside out.
Penny stocks are unpredictable, volatile and subject to market manipulation to an extent that trading or investing in them can sound scary. You need the right strategy and experience in trading penny stocks in order to survive in the industry for long. And Timothy Sykes claims to offer the right trading courses.
While his courses are relatively cheaper, his DVDs are quite expensive and are mandatory if you really want to learn his trading strategy. But that’s the price you have to pay in order to learn from one of the most sought after traders in the world. You may not like his personality, but you might like what he has to offer whether you are a novice or experienced trader.
Blake is a self-made online day trader with a knack for adventure. On his free time, he loves reading and learning new methods in the trading as well as improving his jiu-jitsu skills. He currently resides in New York City.