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Behind My $500K Trading Challenge Student’s Strategy

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Written by Timothy Sykes
Updated 1/10/2023 14 min read

I’ve got a student who recently passed a massive trading milestone*…

But I can’t tell you who he is … I can only reveal his Profit.ly alter ego.

I wish I could. He’s kind of a big deal. Some of you might even be fans.

He’s got a big social media presence for something that has nothing to do with trading. To keep his different pursuits separate he prefers to stay anonymous.

This busy entrepreneur-turned-trader recently passed the $500,000 profit mark. As of mid-July 2021, he’s over $503,000 in trading profits.*

He’s actually been following me for years, but only got serious about trading in the past year or so. He was just accepted to my Trading Challenge in early 2021. It’s been quite a year for him so far…

Read on to learn all about his story and unique trading strategy.

Note: Curious how 2021’s been treating me and my trading? Check out my latest video featuring a mid-year recap:

A Long and Winding Trading Road…

My $500,000 mystery student* discovered me in 2013.

At the time, he’d just aggressively paid off his student loans. He had some money and was interested in pursuing new opportunities.

And he had a little money to start trading … But not enough money for my Trading Challenge.

So he started where he could. He signed up for TimAlerts and learned from my videos.

Too bad my 30-Day Bootcamp wasn’t available then … Ever since it was released in 2020, it’s been a gateway for traders interested in my Trading Challenge.

Featuring lessons from me, my top student Matthew Monaco, and guest appearances from traders like StocksToTrade’s** Tim Bohen, It’s a great way to learn the basics of trading at your own pace…

My mystery student was pursuing more than just trading at that time.

Along with a partner, he was working on developing a business. For the next several years, his trading career mostly involved learning and dabbling since his attention was mainly on building his company.

As a trader, he made a ton of mistakes. He admits that he didn’t do extremely well.

But in retrospect, this was actually a good thing.

For one, it helped him recognize that trading isn’t as easy as some fake gurus would have you believe. He also believes those initial losses are par for the course “when you’re conditioning yourself to be a lifetime trader.”

I love that he instinctively picked up on what I call the ‘athlete mindset’ — I wish more traders understood this!

According to my mystery student, trading is a lot like working out…

“You’re not going to be a bodybuilder in a year. Maybe not even five years. You need to keep doing it. As you train as a trader, you get little scars. They heal and teach you to be a better trader and how to handle the markets with less emotion.”

Changing Lanes: Getting Real About Trading Education

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Several years down the road, by the end of 2020, my mystery student was doing pretty well in life.

The business he’d started had grown. He was established. And he had more money and decided it was time to get serious about trading.

But he recognized that he needed guidance on how to trade penny stocks. “I’d learned as much as I could on my own. I needed some structure.”

So in early 2021, he applied for my Trading Challenge. He was accepted — and he started studying hard right away.

This student was obsessive about following my lessons and the Trading Challenge chat room. He’d even go to bed with his AirPods in, listening to my lessons and picking up trading lingo

And he took the time to get more familiar with trading software and doing his own stock screening.

Because he has a very busy schedule, he had to devise his own system of finding stocks and doing research. He relies on alerts he sets and sets aside full days every now and again to get through his watchlist and wait for his patterns.

His Favorite Trading Challenge Resources

My mystery student tells me he gained a lot of knowledge through my DVDs, webinars, alerts, and frequent lessons.

But one of the biggest resources that he’s using on a daily basis is the Trading Challenge chat room.

“It’s direct in code,” he says. He’s referring to the fact that it can be easier to pick up on trends by just watching the most discussed tickers. When he starts to see trader after trader mentioning the same ticker, it gives him a clue that it might be worth researching…

The Importance of Developing Your Own Strategy

Early on in his Trading Challenge days, my mystery student recognized that trading wasn’t just a matter of following my trades — or anyone else’s.

As he says, “You can’t just copy people. You need to find what is comfortable for you.”

I wish more students understood that…

My mystery student wanted self-sufficiency. His approach was to listen to what people like me and my top students had to say — then see if he could spin it in a way that worked for him.

A Different Spin on My Strategy

My mystery student has adapted my teachings in some pretty interesting ways.

He shares that his biggest gains* have resulted from taking “heavy positions right before a catalyst.”

To find stocks, he relies on “a broad spectrum of resources” — social media, trading platforms, and chat rooms.

He does his own research, but he looks to the crowd to get a sense of the trend and hype. And he spends a lot of time in the Trading Challenge chat room.

When he sees a lot of people discussing something but it hasn’t yet moved, he knows that there could be a big move on the horizon. There’s hype, and that attracts traders. It doesn’t really matter if there’s a good reason or not.

Using this strategy, he started to find success with speculative hype pharmaceutical plays like Ocugen Inc (NASDAQ: OCGN). Most notably he had a $13,094 profit trade, but he also had several other trades on it, including this $6,794 profit trade.*

Diversify Your Strategy

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My mystery student doesn’t like to put all his eggs in one basket. “You don’t want to rely on the same strategy with everything you’re doing,” he tells me.

All the same, he doesn’t follow a million different strategies — he sticks to just a few that work for him.

Another strategy that worked for him in 2020 was capitalizing on the market crash in March. He bought up a lot of stocks that he thought would rebound — like cruise lines.

He wasn’t 100% sure that it would happen that way. But he figured that within a year and a half that things would bounce back, especially with big companies that he knew could afford to bleed out for a while.

For instance, everyone said AMC Entertainment Holdings Inc. (NYSE: AMC) was going to fail. Then it spiked huge and recently spiked again.

In fact, the more recent spike helped push my student Brock over the million-dollar profit mark*…

Hold, But Don’t Hope: Investing in “Ghost Stocks”

Yep. I said invest. I’m a trader — not an investor. So it’s not a word you see around here a lot when it comes to stocks…

But my mystery student has an interesting approach to investing in penny stocks.

In the past, he’s put a ton of stocks on his radar — then waits for people to lose interest in them.

Eventually, they’d hit a rock-bottom point where nobody cared about them. My mystery student describes them as “ghost stocks.”

At that point, he’ll look at the chart and look at the low compared to its timespan.

He might put money into five to 10 of these ghost stocks — within a few months, they have the potential to go up exponentially.

With this approach, he attempts to capitalize on the idea that past runners tend to run again.

But while he’s holding, he’s not necessarily hoping. He sees these stocks for what they are.

If there’s just one runner in the mix, the potential profits can carry the other stocks that do nothing. And since he already bought on the downside, there isn’t much more downside that they can experience.

He isn’t risking much on each, so he doesn’t care if they all go to zero.

All the same, he realizes that this approach may not work in all markets. He also admits that even though he doesn’t necessarily believe in these stocks, “There are mistakes that have cost me based on stubbornness or that fruitful hope of ‘what if’.”

That’s why one of his goals is to get more into day trading

Continuing to Adapt and Grow

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Right now, one of my mystery student’s goals is to channel more of my sniper-like approach to penny stocks.

He says that he likes my strategy because it’s in and out — you’re never really in the market. His analogy? “It’s like you’re reaching into a waterfall and grabbing money.”

But fast-paced day trading requires a lot of discipline. Traders must do their due diligence. They must have the stocks on their radar. And they’re smart to stay in tune with a trading community where people watch what’s hot.

It also requires the ability to get out of a trade fast if necessary. Cutting losses quickly is vital.

This is a challenge for my mystery student because he’s gotten accustomed to trading big positions and moving a lot of volume.

But he’s motivated to keep adapting. He wants to have more liquidity so that he can be more nimble when he sees hot plays come along.

Tips for Newbies

According to my mystery student, new traders should focus on learning — not making money.

Mistakes are inevitable. It’s a trader’s responsibility to make sure that mistakes are impactful enough to learn from, but not impactful enough to ruin you.

He says, “Only trade disposable income. If you’re trading money that you might need it will really play with your emotions.

“If you’re looking at your positions too much, you put in too much. Put in an amount that doesn’t affect you emotionally.”

No, you won’t make a lot of money this way — but it can reduce FOMO. When traders jump in because of FOMO, they’re already behind the curve.

As my mystery student says, “The market is a huge emotional test against yourself and what you’re willing to risk.”

Are You Ready to Take Your Next Step?

My $500,000 mystery student* has had an epic trading journey.

He spent over seven years dabbling in the stock market without much guidance before he decided to get serious about his education.

Once he joined my Trading Challenge, he was prepared to take his studies seriously. He dedicated himself to the process, and now he’s enjoying some incredible results. Just check out his profit chart.*

Results like this aren’t common. Every trader’s journey will be different. But there are a ton of lessons you can learn from this mystery student’s journey. Like how losses can be your best teachers, why it’s critical to develop your own strategy, and why it’s crucial to adapt to survive in the market.

Are you ready to get serious about your trading career? Consider applying for my Trading Challenge.

How does my mystery student’s work ethic inspire you? Which of his strategies do you like best? Leave a comment … I love hearing from you!

Disclaimers

*Please note that any reported trading results are not typical and do not reflect the experience of the majority of individuals using our products. From January 1, 2020, to December 31, 2020, typical users of the products and services offered by this website reported earning, on average, an estimated $49.91 in profit. 

It takes years of dedication, hard work, and discipline to learn how to trade. Individual results will vary. Trading is inherently risky. Before making any trades, remember to do your due diligence and never risk more than you can afford to lose. 

Note: Tim has also hired Matthew Monaco to assist with his trading education business.

**Tim Sykes has a minority ownership stake in StockstoTrade.com.


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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”