American author and penny stock expert Tim Sykes was born in Orange, Connecticut in 1981. He began trading at a young age when his parents gave him full control of his bar mitzvah money (thinking he would lose it all) while he was still in high school. As everyone knows he eventually turned this small sum of $12,000 into well over $2 million by trading thousands of crappy penny stocks, by the time he had finished college at Tulane University. He has an estimated net worth of $6 million in 2016.
Family and friends wanted him to invest on their behave so he started a hedge fund called the Cilantro Fund during his senior year of college. At it’s peak it only had $3 million under management due to his strategy of short selling penny stocks not being scalable. Initially it was successful with Barclay’s Group rating his fund as the top short biased hedge fund from 2003-2006 and was listed by Trader Monthly in ”Top 30 under 30” stock traders. As you would imagine his unique story attracted a lot of media attention. He ended up starring in season 1 of the highly popular Wall Street Warriors reality program.
He was portrayed as the jackass of the show and has said in interviews he was drunk during most of the filming, as his hedge fund wasn’t doing well. Tim started investing because he was unhappy with his fund slowly growing at 20% per year. He closed the fund by the end of 2007 after losing 1/3 third of it’s value due to a bad investment in Cygnus E-Transactions, a company that was owned by his friends dad. After the series was aired he started getting hundreds of emails in his inbox everyday from people wanting to learn more about his penny stock strategy.This inspired him to write a book titled “An American Hedge Fund: How I Made $2 Million as a Stock Operator & Created a Hedge Fund”(the pdf of his book was released for free online).
Sykes moved on to the next phase of his life and was ranked number one out of a field of 60,000 traders by Covestor, a platform that tracks stock performance while verifying trades. In the recent past, Sykes was involved in the paid promotion for a stock known by the symbol IRYS. He went against his usual no promotion stance by taking part in the campaign. Currently, Sykes works as an activist in the financial world. He specializes in exposing people, businesses and corporations that run dubious operations such as pump and dump, a scam that he has profited from in the past. Sykes also instructs those new to trading on how to make money from short-selling stocks. As of now Tim has three newsletters Tim Alerts, Penny Stocking Silver and Tim LongTerm.
Tim has made roughly $3 million just through trading alone but makes the most of his money from educating traders through his newsletters, conferences and dvd’s. His dvd’s are expensive but mandatory if you want to learn his strategy. Check out his store for promotional codes and search ebay to get the best deals. List of Dvd’s
- Pennystocking Part Deux (in my opinion his best DVD)
- Tim Raw
- Tim Fundamentals
- Tim Fundamentals Part Deux
- Tim Tactics
- Read SEC Filings
- New Rules of Pennystocking
- Learn Level II
- Best of Livestock
- Pennystocking Framework
Millionaire Student Challenge Worth the Price?
- The challenge costs nearly $5000 for the full year.
- You receive a copy of all his DVD’s mentioned above.
- One year membership to penny stocking silver which contains 700 video lessons, his daily trade alerts and watch-lists.
- Two webinars a week, one with Tim and the other with Michael Goode who is also a chatroom moderator.
- The webinars and chatroom help minimize the learning curve, as opposed to going it alone.
- A penny stocking silver subscription will be more cost-effective if you can’t afford to join his challenge because $5,000 is a significant amount of money for traders starting out trying to grow their account.
Timothy Sykes Scam??
As you would expect there are a lot traders skeptical due to due to his marketing syle… people wonder if Tim is a fraud? Are his trading profits fake? I personally don’t think Timothy Sykes is a scam and anyone who says otherwise is just ignorant or have not joined his alert service. Tim is a real guy, he responds to your emails and his service is legit. His trading profits are real and have been verified on profitly. Tim makes crazy money trading penny stocks, he can have $1000 days, but the real question is can he teach you to make the same kind of money? Your overall success depends on how determined you are to learn his strategy inside out, Tim Grittani is a prime example of this. The majority of members join with such high expectations of becoming his next millionaire student, but the reality of the situation is they won’t ever get near that. I don’t like being critical of Tim’s service mainly because he’s a cool guy, works his butt off and brings transparency to the corrupt little niche of penny stocks.
Tim’s Trading Alerts
The main reason why the vast majority of traders join his membership site is thay think they are able to just copy his trade alerts and bank just like Tim. This won’t work because penny stocks have big spreads, so that means the odds are against you right from the start by trading his alerts, especially if you are getting in at a price 0.20 higher when he buys and 0.20 lower when he short sells a stock. Don’t copy his trades like his other followers. The alert’s are there for guidance and to teach you to become independent by being able to build your own watch-list of stocks, so you won’t depend on Tim for ideas on which penny stocks to trade.
How Much Money Do You Need to Start Trading?
This is a common question asked by a lot of newbies. You can start with $500, $2,000 or $5,000 ($500 is the minimum) but to avoid the pattern day trader rule you will need to setup an account with an off-shore broker such as SureTrader. Another option is to open more than one brokerage accounts and split up your money so you can trade more. It is difficult to grow an account with the PDT rule, which only allows you to trade 3 times a week. If your account is over $25,000 you can avoid the PDT rule. This slows the learning process if you can only trade 3 times a week because you can only learn properly by trading (unless you paper trade). When Tim Sykes grew his account to from $12,000 to well over a million in college the PDT rule wasn’t around back then. Hard to Borrow Shares There is isn’t a unlimited amount of shares to short of penny stocks and you can’t short a stock unless there are shares available.
His core strategy is all about short selling over-hyped pump and dump stocks. When the stock promotion ends and there are no more buyers, the music stops and share price collapses. Now that more traders have found Tim’s strategy competition has increased and it is alot harder to find shares to short of stocks. Etrade is broker recommended by Sykes for short selling. When there’s a great time to short a certain stock there are no shares to short, but when the pump and dump is over there are plenty of shares to short. Brokers just can’t keep up with all this demand in such a short space of time. Tim gets the best shorts because him and some of his students use a high net worth broker where the minimum is $30,000. Also another thing is that margin requirements for shorting shares under $2 is crazy. Join for the education and not to get rich quick. Surround yourself with successful traders and you will become a better trader yourself.