While penny stocks are risky investments for beginners, they have helped hundreds of individuals become wealthier beyond their wildest dreams. These types of investments are not suitable for the average person not willing to take risks!
Josh Sason is an entrepreneur and investor that has earned millions from penny stock financing. He’s relatively unknown within the investing community but has quietly accumulated a fortune dealing with small companies desperate for cash. Sason discovered this weird legal trick to make huge returns on penny stocks. Instead of buying shares, he loans money to companies and in return receives millions of shares at a big discount to the market price. As long as the stock has liquidity, Sason can make millions on each deal. Not everyone uses this strategy because it is risky if you don’t know what you’re doing. Also, many have gone to jail trying by taking shortcuts using a similar strategy.
The Brooklyn native whose exploits were revealed in the Wolf of Wall Street film, once lived the rock ‘n’ roll lifestyle. He first forayed in the world of penny stocks in 1989, setting up a brokerage firm, Stratton Oakmont. The brokerage later became a boiler room operation, pumping worthless stocks. At one point, Stratton Oakmont employed 1000 brokers all pitching terrible penny stock companies over the phone to clueless investors. They used aggressive marketing tactics to drive up share prices and later dumped the stock for massive profits with customers losing millions.
Eventually, the SEC caught onto the scheme and the firm was shut down in 1996. Belfort lost his fortune and served 22 months in jail after making a plea day with the FBI. He got a reduced sentence for giving testimony against others involved in the scam and agreed to pay back $110.4 million to investors. Fast forward to 2018 and the fraudster is still living the high life working as a motivational speaker. According to an article in 2017, $97 million is still owed to victims.
Sykes is the godfather of penny stocks, infamous for turning $12,000 into $1.6 million. Tim is now known as that flashy guy on Instagram, posing with wads of cash in front of an orange Lamborghini. Despite using gimmicky marketing tactics to capture attention, he’s actually a cool guy. Sykes has made a fortune short selling over-hyped stocks and runs a successful educational business, motivating thousands of aspiring traders to start trading.
Tim Grittani is a talented penny stock day trader who somehow turned a few thousand in $6 million in profits! Despite the amount of wealth he’s acquired, he remains a humble guy and never shows off his money. Grittani started day trading back in 2010 after discovering Tim Sykes online. He lost money for the first 12 months before becoming consistently profitable. Due to his unique success story, Sykes promotes him to attract new students. Luckily for aspiring traders, Grittani likes to share some of his knowledge. He released a DVD in 2015, Trading Tickers, outlining what chart patterns he follows and how to perform technical analysis. Steven Dux cites Trading Tickers as his favourite DVD, saying he has watched it at least five times.
Steven Dux is the latest hotshot day trader everyone is talking about on Twitter. Less than two years trading and is closing in on $2 million in verified profits. He spent spending thousands of hours learning from mentors such as Sykes, Grittani and Michael Goode. Dux is a very analytical trader that tracks all of his data on spreadsheets, testing what chart patterns work the best in every situation. Once he identifies high probability chart patterns, Dux bets large amounts of money. He claims some of the patterns he follows to have an 85% win rate. Due to persistent requests, this young whizzkid released a DVD called Trading Techniques, revealing everything he knows about trading volatile low-priced stocks. The DVD retails for $900, so only those with deep pockets can learn his secrets.
Goode is another of Sykes’ millionaire students that is now a mentor within his challenge program. At first, Goode was sceptical of Sykes, publishing an article bashing his strategy. Later he changed his minded after using the strategy to make over three figures! Goode also uses other strategies and has earned a total of $2.19 million from stock trading. His website, Goodetrades.com is an excellent resource to learn about the latest stock promotion news.
Gregg Sciabica, aka LX21, is the best stock trader no one has heard of. An experienced veteran who leverages statistics and human psychology to predict stock price movement. Gregg continues to thrive regardless of market conditions, giving him the ability to make money in a bull or bear market. The internet bubble in the late 1990s was a fun time for Gregg, banking huge profits and cashed out before the collapse. Over the life span of his trading career, he has earned a mind-boggling $10 million! LX21 likes to keep a low profile but does speak at various conferences to share his wisdom.
Bao Nguyen, known as Modern Rock within the trading community, made millions with risky OTC stocks. Bizarrely, Bao took out a $50,000 home equity loan and allegedly turned that sum into over $10 million. He has a large following on Twitter and enjoys bashing self-proclaimed stock experts.