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How I Surprised Real Estate Icon Ryan Pineda

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Written by Timothy Sykes
Updated 2/6/2023 5 min read

I jumped for joy when I bought my first Lamborghini.

It felt like I had achieved my boyhood dreams.

So, imagine my surprise when I bought a second one and felt…nothing.

I thought something was wrong with me, that maybe I was sick.

It turns out I reached an inflection point in my life.

Working for myself meant very little anymore.

As we laid the last brick on the first school I built in Bali, I realized what I was meant to do.

Working for others now means everything.

This was a bit of a shock to Ryan Pineda, famed podcaster and real estate investor.

He knew me from the internet and the personality I presented to the world over the last two decades.

However, the ‘real me’ often gets lost – the one who advocates for the environment, donates his trading profits, and helps children around the world,

I recently sat down with Ryan to tape an episode for his YouTube channel.

Ryan and I talked about everything from penny stocks to real estate.

It was a great interview where I got very candid.

But it was three things in particular that really surprised Ryan because they shattered his preconceived notions.

I exploit my niche very well

timothy sykes in matera in 2022
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During the dotcom bubble, I bought any company that added ‘.com’ to its name.

Sure enough, they’d skyrocket in days.

It was my first foray into hype trading and not my last.

A few years later, I learned to short many of those same names as they plummeted.

This was the beginning of my 7-Step Penny Stock Framework.

I’m not great at math. Frankly, I don’t think I’m that smart academically.

But I also am lucky and intuitive.

Ryan didn’t believe me when I told him I’m a terrible investor.

So it took a bit of convincing.

Early on, I learned to spot the Supernova promotion cycle work its way through stock after stock.

At the same time, I saw promoters talk up these same companies.

The whole environment coalesced around this boom/bust pattern that still works today.

It forms the foundation I teach my Millionaire Challenge students.

What I teach works across asset classes

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Ryan asked me whether penny stock trading was a side hustle or something more.

He didn’t expect me to say it could be whatever you want.

Some of my students trade full time.

Jack Kellogg studied his butt off to earn over $10 million in trading profits.

Other folks keep it small and follow my Weekend Profits, which trades one of my favorite patterns – buy on Friday and sell on Monday using a specific strategy.

My methods are designed to help everyday folks grow their small accounts, whether its a few hundred or a few thousand dollars.

Small and steady wins the race

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I’ve made over $7 million trading.

However, I’ve only made over $1 million a few times in a single year.

For example, last year, I barely broke $100,000.

Over time, even these small gains add up.

As I explained to Ryan, throwing so little money at bluechips will not help you in the long run.

However, as Ryan noticed, the swells (bubbles) in asset classes that build and burst offer opportunities to really move the needle.

Earning 10%-15% on $2,000 isn’t going to do much.

But if you manage to take just one great trade per week that nets you 5%, even if you lose one out of every three trades, you’d more than double your account in a year.

Most of my students don’t become millionaire traders in their first few years.

However, the ones that dedicate themselves to studying, learning to identify setups, managing risk, and properly executing trades stand the best chance of generating consistent trading profits.

That seems counterintuitive, considering we’re trading stocks that sometimes move hundreds of percentage points.

However, the goal isn’t to capture the entirety of a move.

It’s to make a consistent profit.

Once you treat trading like a business and not a casino, everything changes.

That’s something Ryan teaches his students about real estate.

So you know, if two successful folks offer the same advice, chances are it’s worth listening to.

–-Tim


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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”