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Hijack! How the Boy Wonder Is Crushing NFT Trading

Matt MonacoAvatar
Written by Matt Monaco
Updated 4/17/2022 8 min read

Hey traders! Matthew Monaco here. I’m taking over the Tim Sykes blog for a minute because I need to tell you this…

Last summer, I spent over $14K on two Pudgy Penguins non-fungible tokens (NFTs).

Sykes ripped me a new one. He thought NFTs were stupid.

But he changed his tune when I sold them for over $63K (over two trades, here and here) a few weeks later.

One of the great things about Sykes is that he can admit when he’s wrong. He recognizes when it’s time to adapt.

That’s why I’m PSYCHED that he jumped on the NFT train. He’s got an NFT event coming up tomorrow. Not only is it a great way to jump-start your NFT education, but there will also be plenty of surprises. (I’m even kicking in a special offer.) Seriously — you do NOT wanna miss this.

I MUST Join Tim’s NFT Club Now! 

Meantime, I’ve got a LOT to say about NFTs and their mind-blowing potential. Keep reading…

Why I Got Into NFTs

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I’ve made over $1.9 million over the course of my trading career. And I don’t just trade penny stocks. I trade crypto, too. That’s a lot … Why expand into NFTs?

Sykes likes to talk about how the right opportunities will bring him out of ‘retirement.’ For me, the NFT opportunities I saw were just TOO good to ignore.

I’m not the only one who saw the potential. Actually, I just interviewed Adam, a fellow Trading Challenge student who’s made over $1 million on NFTs so far. He’s also part of the event tomorrow with Sykes. Check it out:

As for my entry … I was really involved in crypto when NFTs went viral last summer. When I started researching, I thought it was crazy cool. So I immediately started researching a collection to get into…

Why Pudgy Penguins?

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A few reasons.

First, I thought they were cute. I figured I have pretty good taste — someone else might like them, too.

But I backed up my gut feeling with research. Pudgy Penguins had a huge social following. There was a TON of Pudgy Penguin activity on Twitter and on Discord. And since the collection was still fairly new, there were still opportunities.

I also looked up the rarity — in the NFT world, that refers to an NFT’s uniqueness. It’s a factor that can drive up the price.

Overall, this collection checked all the boxes. So I bought an NFT in ethereum, for the equivalent of about $12K, and I rode the momentum over the next week or so. That trade made me $53,804.

The Importance of Preparation

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As a student of Sykes, I definitely value being prepared. That’s why I helped Sykes create his 30-Day Bootcamp for traders.

I’ve spent years learning how to trade penny stocks and crypto. All of that training allowed me to be prepared for the next big thing — like NFTs and crypto.

A lot of trading is about psychology. What’s the mob mentality, and how can I take advantage of it? It happens all the time with penny stocks — people wanting to hold ‘to the moon.’

With NFTs, I’m just trying to ride the momentum like I do with penny stocks.

That said, a strong foundation in penny stock and/or crypto trading will serve you well. The Trading Challenge is an incredible resource for trading education. As for crypto, my Crypto Bootcamp can be a great entry.

NFTs are not crypto. However, since they’re sold on the blockchain and usually bought and sold with cryptocurrencies, a foundational knowledge of crypto can help.

No doubt, crypto’s a big mystery for many people. To trade NFTs, you’ll need to understand some basics like how to open a crypto wallet and avoid scams.

Do NFTs Have Long-Term Potential?

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I think NFT technology will change the world.

There’s SO much potential. For instance, NFTs could change how we sign contracts. The month-long process of getting paperwork to buy a house could happen in minutes. It could revolutionize anything that requires a contract.

Right now, the current NFT world is very speculative. Eventually, I think that the top NFTs could follow a similar pattern to Pokémon cards, where they come back years later with increased value.

But just look at what’s happening with the Bored Ape Yacht Club. It’s expanded way beyond just an avatar. It’s more like a cult, and people want in. Many celebrities are breaking into the NFT world. I think that some NFTs will stick around and maintain value, especially if their respective communities keep innovating and expanding.

Wanna Join the Club?

When a die-hard penny stock trader like Sykes jumps on board with a new trading style, you’ve GOTTA at least check it out.

 

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NFTs are creating some of the most incredible trading opportunities in the current market. I don’t think it’s just a trend. I think we’re just getting started.

Ready to join the revolution? Start by attending the NO-COST event tomorrow to learn how to get started.

Get Access Now!

Did you like my takeover of the Sykes blog? What are your thoughts on NFTs? Leave a comment — I wanna know what you think!


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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 (205) 851-0506 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”