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Penny Stock Basics

Exposing A New Wolf Of Wall Street-Like Stock Pump

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Written by Timothy Sykes
Updated 3/20/2023 4 min read

One of my newsletter subscribers is a mailman and he emails me every time he’s about to deliver mailers on a penny stock pump!

Penny stocks promoted by scumbags like this career criminal and The Female Wolf Of Wall Street here.

I formerly wrote about this mailman HERE and it’s actually very logical to buy a pump if it’s early enough in the promotion (since a penny stock pump’s entire existence is to enhance the wealth of insiders/promoters who prop up a worthless “company” by marketing it to unsuspecting and financially ignorant people all over the world, sadly mostly to midwesterners, the kind of people who believe reality shows are real (newsflash, as I wrote HERE, they’re not)

The vast majority of the world believes trading penny stocks to be unpredictable and dangerous while traders like this young man, my success as documented HERE and videos like these below prove beyond a shadow of doubt that penny stocks actually are VERY predictable if you stick to the right patterns and use rules like these to trade penny stocks.

Not to mention all of these people too!

And that’s because with penny stock pumps you don’t have to analyze the company’s industry, competitors, their profit potential, revenue growth etc. because they don’t have any real businesses, their stocks are artificially inflated by sending out mailers like these:

mailman 1

mailman 2

mailman 3

Yup, that’s right IFAN is being artificially pumped up by mailman everywhere right now…as my mailman student says “Disclaimer says 3.5 million paid to advertise. Mailing these today!” so I wouldn’t be shorting IFAN right now… truly and blissfully financially people receive these mailers today, tomorrow, over the weekend and I’d love to see insiders/promoters NOT sell into their buying so there may be a massive short squeeze if and when the stock breaks above . 60 and .61…and I might even buy such a breakout despite the fact that I was shorting it the other day at .59.

I don’t think the company is worth more than a penny per share, but with all these mailmen delivering mailers, the vast majority of the world’s idiots will be buying this stock and there’s a lot more of them than there are me or my well informed students…breakout potential, just be careful though as insiders and promoters can and will sell at anytime and if the SEC ever gets off their butts, this stock should be halted soon too so there’s risk buying and holding overnight too.

I look forward to IFAN being a great short eventually, once the promotion runs out as it’ll crack EXACTLY like this and my top trading challenge students and I will be ready to short in anticipation of its inevitable 30-50-70% crash which will happen over 1-2-3 days when insiders/promoters have cashed out all their shares.


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Timothy Sykes

Tim Sykes is a penny stock trader and teacher who became a self-made millionaire by the age of 22 by trading $12,415 of bar mitzvah money. After becoming disenchanted with the hedge fund world, he established the Tim Sykes Trading Challenge to teach aspiring traders how to follow his trading strategies. He’s been featured in a variety of media outlets including CNN, Larry King, Steve Harvey, Forbes, Men’s Journal, and more. He’s also an active philanthropist and environmental activist, a co-founder of Karmagawa, and has donated millions of dollars to charity. Read More

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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”