Trading penny stocks is one of the most-publicized ways to make money from the stock market while enjoying the freedom to work from anywhere, and on your schedule. However, for many people just getting started with penny stocks, it is easy to be discouraged by negative stories on how trading penny stocks is a speculative venture and how most new traders will lose a large part or all of their money in a matter of months.
Interestingly, Tim Sykes has defied the negative sentiment to build a hugely successful penny stock trading empire. Timothy Sykes succeeded despite all odds, starting as a teenager and without an MBA to become an incredibly successful penny stock trader and teacher. His net worth is estimated to be more than $15 million. Unfortunately, critics can’t seem to comprehend the success story and there are many unfounded Timothy Sykes scam diatribes on the internet.
Debunking the Timothy Sykes Scam stories – the difference between trading and investing
Timothy Sykes became a penny stock trading legend after turning his $12,415 Bar Mitzvah gift money into more than $2 million by the time he was a freshman in college. He then went ahead to teach other people how to achieve similar results and CNN reported that one of his students, Tim Grittani successfully turned $1500 into more than $1 million within 3 years.
Many people find it hard to relate to the story because they invested in penny stocks and they have lost money. Interestingly, people who join any of Timothy Sykes’ training programs discover that he teaches his students that investing in penny stocks would most likely result in losses. Simply put, Timothy Sykes teaches his students how to trade penny stocks successfully NOT HOW TO INVEST IN PENNY STOCKS.
A 2016 report from the Division of Economic Risk Analysis (DERA) at the SEC suggests that investing in penny stocks, on average generates negative returns. Between 2001 and 2010, the average annual return on a sample of 10,000 penny stocks was between -27% and -37%. These stats show that penny stocks are no good and that investors are probably better off storing their money under a mattress.
The problem, however, is that most people don’t seem to know the difference between trading penny stocks and investing in penny stocks. His students say they couldn’t differentiate between trading and investing until they joined Timothy Sykes’ penny stock trading program. However, over several months of being on Profitly, watching Tim’s videos and reading his books, they come to realize that stock trading is concerned with buying and selling penny stocks for short-term gains. The focus is on trading price. On the contrary, investing in stock is focused on long term gains because the investor believes in the future potential of the company.
Penny stocks are typically the stocks of small unproven businesses and one thing to be learned from Timothy Sykes is not to fall in love with a stock. Traders are trading to profit – buy low, sell high, and get out. Tim sometimes holds some positions for only a couple of minutes before selling and he rarely holds a position in any penny stock for more than 2 days.
Debunking the Timothy Sykes Scam stories – an overview of the training programs
Timothy Sykes offers his stock trading education through a triple-tiered program on Profitly. Profitly is a community where traders can interact and learn with the best traders and get enough information to take their trading to the next level. The three tiers of membership are:
- Tim’s Alerts
- Pennystocking Silver
- Millionaire Challenge
Tim’s Alert is the basic form of membership. It gives access to the chatroom, to follow a stream of commentary from Tim, other gurus, traders, and students. Tim is constantly sharing his thoughts about the positions he currently holds, positions he wants to make, and positions he wants to exit. Participants also get a daily watchlist of 5 -10 penny stocks they may want to put in their own portfolio when the price and time are right. Tim’s Alert also gives Realtime ProfiDing Trade alerts deliverable via SMS, Email, and Push notifications.
Tim’s Alert is the cheapest way to test the legitimacy of Timothy Sykes as it only costs $74.95 per month. Participants get a 24% discount by signing up for the annual plan.
PennyStocking Silver is the next tier of membership and it offers more value for money for those wanting a deep understanding of how to trade penny stocks profitably. Tim’s Alert is informational – followers get to know the trading actions that Tim is making. PennyStocking Silver is educational because it goes beyond showing what Tim is trading to explaining why he is making these trading decisions.
PennyStocking Silver provides access to a video library with more than 6000 lessons to equip traders with valuable trading education, There are also weekly video lessons to help start to make insightful trading decisions even while still learning the fundamentals of trading penny stocks. PennyStocking Silver costs $149.95 per month and there is a 28% discount when opting for the annual plan.
Tim’s Challenge, also called Millionaire’s Challenge, is the real deal for traders to pursue the highest form of success as a penny stock trader. There is an application process to prove that prospective participants are committed to putting in the hard work required to succeed. Getting into Tim’s Challenge allows direct tutelage and mentorship from Tim. Once inside, new participants start with a series of emails, and a specially curated 60 video intro course with a combined run time of more than 300 minutes.
The Challenge also includes all the benefits of PennyStocking Silver and exclusive access to the Millionaire challenge chatroom. There is also exclusive access to webinars, commentaries, and watchlists. This program tracks personal trading performance and access to view the trading performance of other traders and gurus.
Timothy Sykes has defied the negative notion that trading penny stocks is a guaranteed way to lose money and he has successfully coached thousands of students on how trade penny stocks profitably. However, from my point of view, Tim has a polarizing style that will either make people love him or hate him. He is the kind of teacher that teaches the core fundamentals, shows a lot of examples, and then steps back while trusting that he has given traders the right foundation. This means that investors only looking for a guru that will feed them with tips on penny stocks to buy, Tim won’t meet their expectations.
However, for the trader willing to commit the time and energy needed to obtain trading education and flex their trading muscles, Timothy Sykes training programs are highly enjoyable.
One of the secrets of trading is to understand the system and gain confidence in the ability to trade penny stocks successfully. The confidence gained by learning from someone who shows their thought processes and actions and passes on that knowledge leads more than halfway to success.