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Penny Stock Basics

Exposing The Most Blatant Penny Stock Promoter Right Now

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Written by Timothy Sykes
Updated 1/10/2023 21 min read

The past few weeks have been insane in penny stock land as SEVERAL of my top trading challenge students have blasted through milestones, this great trader just passed $6 million in profits, this young man just passed $2 million and is closing in on $900,000 in profits in just the last 3 months (hit me up here for a deal on his new guide), and this up and comer just passed $100,000**…and more than just the $ they make, they’re entirely self-sufficient and they’re profiting from all sorts of great penny stock patterns that are proving themselves over and over with solid consistency right now.

(FYI This pattern and now this one too are the 2 patterns working best for me right now)

Get inspired by these top trading challenge students of mine and realize they study their butts off to earn such crazy dollar amounts and never forget that most traders lose so you must do all you can, and more, to avoid being just another statistic.

And that brings me to today’s point as some people ask “Tim, I hear ya, but what do I study…isn’t making millions of dollars in the stock market just about trading hot stocks and hot picks?”

NO!

You will NEVER become a millionaire following anyone else and their picks or “hot stocks”, just ask the many non-millionaires who claim to be teaching these days, all they do is pick a low float stock and try to pump it up as high as possible…the only thing that works consistently with that strategy is betting against/short selling the chat pumps like those!

And their “students” don’t make millions over time because they’re not learning how to pick stocks and make solid trading plans themselves, they’re just dumb monkeys following other people’s picks….that’s why my top trading challenge students and I show EVERY trade we make, year in year out, not just some BS photoshopped screenshot pretending to be profitable like the many fakers in my industry (it’s good to be real in an industry full of scammers)

So do yourself a favor and study up so you can become self-sufficient, see this 11-hour guide and this penny stock trading basics guide…then if you’re really serious about your education, definitely devour this MUST READ penny stock trading book.

You’ll learn what’s real and what’s not…and I just made this video exposing a lousy penny stock promoter to help you understand what’s not real and why penny stock “hot stock picking” is such a joke.

Many will ask what promoter this is and the answer is it doesn’t matter…they’re all the same, even if this one’s disclaimer is oddly honest/blunt so it’s far more important you understand the rules of the game than any one hot stock or any one penny stock promoter and I want you to leave a comment underneath this blog post if you understand that!

(we’ve also transcribed this video lesson below for my valued deaf trading challenge students so enjoy!)

**

Hey, Tim Sykes here. Thank you for all the well wishes. I’m feeling better, got a little sick. I’m in Asia working on several of my charities, and the stock market is open here at all night, so I’m, like, staying up all night, doing charity and having some adventures during the day. It caught up with me. I’m sorry, but I’m back. I slept, like, 11 hours last night. I feel good. A lot to discuss now before the weekend, first, I should mention this Profitly sale. This is for my birthday sale, for my 37th birthday a few days ago. This is ending in a few days, so take advantage of it. I’ll post a link just below this video. You can save a ton of money on newsletters and guides, which so many of you guys need to be watching, especially my latest guide, “PennyStocking Framework Part Deux,” goes over all of the best patterns that I see right now. And “Trading Tickers,” this is Tim Grittani’s guide. He just crossed 6 million in profits. He has to upload, but he made $50 grand the other day on… What was that, that amazing play? I can’t even think. It got crushed. Oh, CHEK. It got crushed now, but he rode that up nicely.

First, let me talk about FUSZ, because I’m seeing a lot of chatter about this. I’ve been dip buying it several times, just made another few hundred dollars on Thursday dip buying the morning panics. This is a classic pump-looking chart. I’m sorry to be the bearer of bad news. I know there’s a lot of people who believe in this. They’re like, “Oh, Oracle. Oh, this company is gonna make it.” Listen you schmucks, all right, this stock is up from 10 cents, went up to $3. You got your freakin’ 30 times your price. I mean, that’s best case scenario for any penny stock. Now, it’s crashing 50% in just a few days, just like so many pumps before. And some people just, you know, they’re not accepting of it. I posted this thing, you know, comparing FUSZ to these marijuana stocks that I warned about a few years ago. You know, all these people like the Wolf of Weed Street and all these fucking idiot newbies believed in these penny stocks that were involved in weed, saying, “This time is different. This time is different.” No, it wasn’t different, and it was kind of interesting, the Wolf of Weed Street and I were both getting followed around by this writer for “Men’s Journal.” Please, please read this post if you haven’t already. You know, the writer didn’t know anything about stocks, and he wasn’t biased at all. In fact, he actually thought that I was full of BS at first. He believed in the Wolf of Weed Street, and then, you know, once I started telling him, “Wait a minute. These are what pumps do. This is why it’s so predictable. The Wolf of Weed Street is just a fucking dumb newbie.” And then I was proven right.

So this is happening again with these pumps like FUSZ. It’s so sad every time. You know, the people who are believing in this company think that I’m, like, lying. They think that I’m evil. They come with all kinds of names. This one guy has been tweeting me, and he says, you know, he calls me a punk and he says that I’m, “supposedly representing the common guy, literally relishing in their blood, letting desire in their misery.” I don’t even know what this means. He can’t speak proper English, but I don’t relish in anybody losing money. I just have to be cruel to be kind, because you fucking idiots people, like, don’t get it until I’m mean. Like, I say, “Don’t buy this stock. It’s a pump,” and then the stock goes up and they’re like, “Sykes, you were wrong.” Pumps do go up for a little bit of time, and I gotta give props to the FUSZ’s promoters. They’ve done a good job. Good job, promoters. But now it’s crashing, and this guy is going down, you know, down. And it’s sad, he’s, like, trying to bring up how Oracle and FUSZ supposedly have some deal. Maybe they do, maybe they don’t. Even if they do, I guarantee that FUSZ will, you know, screw it up, as all these penny stocks do.

And this is the sad part, this guy has an average price of, you know, 277, and he has 22…I don’t know whether he has $22,000 or 22,000 shares. Either way, he’s down close to 50%. And he said, “Just had my portfolio reinfused with NETE win.” Well, NETE is another pump, so at least one pump is working for you. But he’s saying, “Market makers getting richer, poor getting poorer, so this is my objection.” It’s not the poor getting poorer, it’s the dumb getting poorer, you know? And it’s…I guess it is kind of the poor getting poorer, because most poor people are pretty dumb. And they can change it, you know? That’s why I’m making this video to help you guys learn what pumps are like. I want to show you the disclaimer of this pump that I just found, this pumper. It doesn’t even matter who the pumpers are, FYI. A lot of you guys are like, “What pumper should I follow?” Don’t follow any of them, they’re all full of shit. You don’t know when you sign up for their, you know, “free email lists” if you’re going to be in their first mailing, or second mailing, or third, or fourth mailing. The pump game has changed over the years, you know? A few years ago, several of my top students, you know, really gamed it nicely where they could, like, change their settings. Like, Michael Goode has webinars about this for the trading-challenged students, where he changed his Gmail settings, and he could get the pumps earlier than other people. And so him and Tim Grittani both made a lot of money just buying pumps when they were being pumped very early on, and you could ride the pumps.

Now, the game has changed, so even if you do sign up, even if you do tweak your emails, you’re probably on, like, the fourth email list, or the sixth email list. You know, the promoters have kind of muddied the waters. What is interesting though is that the promoters have become more comedic in their disclaimers. You know, obviously all the promoters, in order to be in business these days, they have to use these disclaimers saying, “Look, we’re being paid to promote these stocks.” But nowhere in the legal world does it have to say, you know, we have to be funny about it, but you know, these promoters are putting out some pretty funny disclaimers. It’s kind of hard to be mad at them, even if you lose all your money following their bullshit. This is funny, so I’m just going to read a few passages, “Investors should read this disclaimer. Remember, when the campaign ends, the stock of the profiled issuers will crash. Who are we and what do we do? We are paid advertisers, also known as stock touts or stock promoters who disseminate favorable information about publicly traded companies.” And then they say, “Will everyone receive the information at the same time. No. The information may be sent to potential investors at different times that are minutes, hours, days, or even weeks apart.” This is where they’re admitting that there are multiple email lists. Look at this, and they’re talking about, like, how they manipulate stocks. “How is the potential investor impacted if he receives the information later than others? Typically, the trading volume and price of a stock,” that we pumped, “increases…” excuse me, “after the information is provided to the first group of investors. Therefore, the later an investor receives the information the more likely it is that he will suffer increased trading losses if he purchases the securities.” So they’re basically saying if you sign up to our email list, we can not guarantee you that you’re going to be first, and because if you’re not first, you’ll probably lose money.

Look at this. “What will happen to the shares that we hold during the campaign? We will sell the shares we hold, while we tell investors to purchase during the campaign.” So they’re basically admitting that they’re going to be lying to you. “What will happen when the campaign ends? Most, if not all, are penny stocks that are illiquid and whose securities are wide fluctuations. During the campaign, the trading volume and price will likely increase. When the campaign ends, the volume and price of the profiled will likely decrease dramatically.” You know, “As a result, investors who purchase during the campaign and hold shares, when the campaign ends, will probably lose most, if not all, of their investment.” I agree, you know? This promoter is dead-on. I love this. “Why do we only publish favorable information? We only publish favorable information because we are compensated to publish only favorable information.” So if somebody paid them to publish non-favorable information, they’ll publish the negative information too. Look at this. “Why don’t we publish negative information? We don’t publish negative information because we are not paid to publish negative information. We are paid only to publish favorable information.” Like, this is hilarious that, A, this is true, but B, the fact that they’re just admitting it. “Is the information complete, accurate, truthful, or reliable? No, the information is a snapshot that only provides positive information. The information consists of only positive content. We do not and will not publish any negative information about the profiled issuers. So investors should consider the information to be one-sided and not balanced, complete, accurate, or reliable.”

“What do we not do? We do not verify or conform any portion of the information. We do not conduct any due diligence, nor do we research. We do not review the conditions, operations, business models, or anything. Where does the information come from? The information is provided from us from the person who hires us. If we say we make stock picks, are those picks our own? No, they are not. We are compensated to advertise the securities we are told to advertise. What will happen if an investor relies on the information? If an investor relies on the information, the investor will lose most, if not all, his or her investments. Investors should not rely on the information to make an investment decision.” And then they get into, like, who compensated us and stuff like that. And they’re basically just saying, like, we are the worst people to listen to. Look at this. “What conflicts of interest…? We are not objective or independent. The profiled issuers and parties hiring us have conflicts of interest.” I mean, like… “What will happen to the shares that we hold during the campaign?” They already even posted this. They’re posting it again just in case you didn’t read it. “We will sell the shares we hold while we tell investors to purchase.” I mean, this is so wrong on so many levels, and yet it’s also pretty funny. Anyways, “We’re not responsible for any losses. Why are we disclosing this? Because we have to, because it’s the law. What are the risks?” Like, and then they get a little more boring, a little more legal towards the bottom.

But you know, it’s just pretty hilarious that they go into all of this. So don’t sign up for any of these free, you know, newsletters. In the past, they’ve actually been good to sign up, because you could’ve been first. Now, they’re specifically saying that you will most likely not be first, and there’s no way to be first anymore with these plays. And again, even if you are first, you know, most pumps aren’t working these days. So FUSZ is a pump, congratulations to promoters. I wish there were shares to short, but I haven’t found any, so I will continue dip buying on the panics, in the morning panics. This is my main strategy the past few days, weeks, months, years. I don’t just dip buy panics on pumps, I also dip buy panics on earnings winners. I had a fantastic dip buy right in here, Travelzoo, which is a former supernova, reported good earnings. And you can see here, the stock spiked up from the sevens all the way into the nines, and actually it got up to nine pre-market. And right at the market open, it dipped. This was on Wednesday, and it dipped from nine to, like, 8.20. I actually got executed roughly 1000 shares right here at 8.25, perfect dip buy. And I recognize it as a former supernova so that it could keep going. Sure enough, it did. I mean, I sold it here in the high eights, I made my few hundred bucks. I was happy, I had a fever. I was sick as shit. I just wanted to go to sleep, but I saw my pattern. And now, you know, it’s at 10.60, so roughly $2.40 a share higher from where I bought it, but dip buys are my thing. FUSZ, my latest dip buy on it was into this panic. I actually had two buys. The first one, I was a little too early. The second one, was better, but still not perfect. It actually had a nice bounce in the afternoon. So dip buys are not always going to be perfect, but at least they’re, you know, less risk, I think, and better reward, rather than trying to rely on these comedians, these…

Maybe these promoters are trying to be comedians. I don’t understand why they would be so funny, and it’s funny to me because I know the game, and I feel kind of happy that I know the game, but I feel kind of sad that, you know, many of you guys don’t know how this game works. So I want to put this in black and white. Like, treasurestocks, I don’t care about Oracle, I don’t care if they’re working with Microsoft. None of these pumps will ever succeed, that’s what you have to understand. Okay? They can have these deals, somehow there’s some loophole, some screw-up. Sometimes these pumps get involved with celebrities, you know, Shaquille O’Neal, Justin Bieber, Dez Bryant I think was one of them. I mean, there’s so many different pumps over the years, and all you can do is learn about them, you know, don’t go down with the ship, you know, not be an idiot, not lose money. I’m sorry to be mean, but I have to be, you know, otherwise you’re just gonna keep losing money. All of these pot stocks, every single person profiled, except me, in this article, because I was short, lost money, okay? And they lost not just some money, they lost, like, nearly all their money.

So if you follow the wrong strategy, if you follow the wrong people, you will get crushed. There’s a reason why I’ve been trading successfully for two decades. Hold on. Sorry, I got distracted. If you follow the wrong strategies and the wrong people, you will get crushed. Okay? I’m not perfect, you know, I’m not, like, I know everything. On TZOO and FUSZ, I mean, I had some nice dip buys, I’ve been having some nice dip buys lately. That’s been my main strategy, but I didn’t make $50,000 the other day like Tim Grittani did, you know, on CHEK. I don’t know why it’s not popping up. I don’t know. My wifi’s on and off, but you know, if you want to learn that pattern, then I highly suggest you watch “Trading Tickers.” But also understand that, you know, with those big gains, and Dux has been having, like, $50,000 or $100,000 profits too lately. If you want a deal on Dux’s guide, email admin@timothysykes.com. But just understand that, when you have these $50,000 to $100,000 profit days, you know, these students started with just a few thousand dollars, and they knew nothing about the markets, okay, they knew nothing about trading. Tim Grittani knew nothing about trading when he first started with me, what, seven years ago. Dux knew nothing about the markets, he found me on Instagram, he liked my Lamborghini. Now, he’s made over $2 million, and they developed their own strategies, and that’s what I want for you guys too. I want you to develop your own strategies, but at the same time, use me as training wheels. See the strategies and the patterns that I’m teaching you, and start to recognize, “Oh, how does this work? You know, why is Tim dip buying these plays?”

Why is this not popping up? Did I lose my wifi? Okay, there we go. CHEK was…maybe my website, my platform just doesn’t like CHEK. Oh, well. The point is that, use the patterns that I teach, and then learn to create your own. And that’s what I love, you know, that’s what I love most about all my top students, is that they learn from me at first, and then they go off and they create all kinds of things. So it’s beautiful. It’s a beautiful game, there’s so much opportunity right now. These promoters are hilarious. I’m still chuckling about this. I mean, just look at this. Where was this? Like, “What will happen to the shares that we hold during the campaign? We will sell the shares we hold while we tell investors to purchase during the campaign.” This one line is, like, the most honest thing any promoter has ever said, and it blows my mind, you know, that they’re so upfront about it. But this is what’s happening with, you know, most people in chat rooms and on message boards. Like, this is why you can’t follow other people’s picks, you can’t follow other people’s alerts. You need to be prepared yourselves. I mean, like on TZOO, by the time I even got my alert out, the thing had already bounced. On FUSZ, it didn’t, but I want you guys learning this stuff ahead of time. Several of my top challenge students said, “Hey, Tim. I really like what you did with FUSZ, because you know, I was in the trade before you. I saw that pattern, I recognized it.”

TZOO was pretty damn fast, and I had an advantage on TZOO because I recognized it as a supernova from years ago, but if you haven’t been trading for that many years, you don’t necessarily remember it. But that’s what this game is all about, okay? In order to become truly successful, in order to become my next millionaire student, you can’t rely on other people’s picks. You’re going to have to learn the patterns yourselves, and then you’re going to have to figure out which patterns you’re best at. Maybe you like dip buying morning panics, like I do. Maybe you like shorting morning spikes, like Dux and Grittani do. Maybe you like multi-day OTC breakouts. Just find patterns that work, and then be willing to change, because sometimes a pattern works for a little bit and then it doesn’t work the next day, or the next week, or the next month. So you’re going to have to adapt. The stock market is always like a moving target, so don’t ever think that you’re ever going to be perfect, you going to be like, “Ah, I never have to study again.” You’re always gonna have to be adapting. That said, you can also avoid just, you know, ignorant losses, and ignorance by, you know, ignoring and/or laughing at promoters and their pumps.

FUSZ, you know, I hope that they let it drop some more, because the bigger the panic, the bigger a potential bounce. LRGR too, I wanted to bring up. This is a blatant pump right now. Look at this. From under one to six. Go promoters, go. This is gonna be a great dip buy when it crashes, and if you can find shares to short, God bless you, because it’ll crash soon. I’ll see you guys in the chat room. Please, please, please take advantage of this sale. It’s ending May 1st, so you have just a few days. Cheers, guys. Shalom.


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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

* 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”