timothy sykes logo

Promoters- Tim Sykes Penny Stock Trader

How To Expose Penny Stock Promoters

Timothy SykesAvatar
Written by Timothy Sykes
Updated 12/14/2022 7 min read

Michael Goode, my first Millionaire Challenge success story, thought I was a typical promoter.

Before meeting me, he dedicated 450 words to castigate me, starting with this lovely headline…

See for yourself right here

I could have fought Michael tooth and nail – treated him like he did me.

Instead, I listened to what he had to say.

He saw my process, my trades, and other successful students.  Ever so slowly, I proved with real-world facts and data why I was the REAL DEAL.

Promoters look flashy on the outside, but they’ve got nothing to back up their game.

They lie, cherry-pick trades, and have no success stories that follow in their wake.

Years later, Michael and I sat down for an interview, a bit tongue & cheek, talking about his journey from hater to millionaire student.

I’m fully aware that I come off as a gregarious, sometimes boastful personality.

But I don’t do it maliciously to hurt people – quite the opposite.

I do it to warn everyone about these promoters framing themselves like do-gooders when they’re the wolves preying on people.

Trashing others online to establish yourself as an authority is a form of gaslighting.

Just look at the recent arrest of Zack Morris, a high-profile Twitter account that fought back when I criticized his work.

He did NOT like me highlighting his shortcomings.

I mean, this guy was brutal.

Check out this video on Twitter if you don’t believe me.

And guess what?

Now he’s in serious trouble with the SEC:

Source: MarketWatch

I want everyone, whether you’re my student, a subscriber to this newsletter, or simply a casual observer, to hear an honest truth…

Trust No One. Make Them Prove Themselves!

You should treat every trading mentor, every Twitter pumper, and every stock this way.

I don’t want folks to assume I know what I’m talking about.

I’d rather they review my trades all posted on Profitly that demonstrate I’m the real deal.

Read through my student success stories from folks who started at the bottom and became millionaire traders.

Some folks don’t think this is necessary and creates unnecessary busy work.

But I want to share with you the story of Zack Morris (no relation to Mark-Paul Gosselaar) which highlight the dangers promoters present.

So, the next time you see someone on social media boasting or bashing, you view them with a skeptical eye.

Zack Morris Missed the Bell

We’re familiar with well-known scam artists like Bernie Madoff, who operated a Ponzi scheme audaciously in full view of everyone.

SEC regulators had no idea what was going on until the house of cards crashed.

Because as long as investors made generous returns, no one wanted to question how he did it.

And that’s where it all starts.

‘Zack Morris’ isn’t the first promoter to be taken down for scamming folks.

In fact, he followed the same pattern I wrote about in this blog post.

He would rile his followers and call me out because I criticized him.

Then, he’d turn around and put up posts like this…

Promoters don’t like it when I expose them.

They prefer to live in the shadows where no one can see them.

Several years ago, the same story played out years before with the Wolf of WeedStreet.

I pointed out the dangers of his pumps, and he fought back.

And I bet you can guess how it ended.

The story was even highlighted in Men’s Journal.

Penny stock promoters use the same tactics over and over to dupe traders.

The story of Alex Delarge (real name Steven Gallagher), is a perfect example of why I call out promoters for who they are and what we can learn from them.

And just because I call them out, doesn’t mean I won’t take advantage of their tricks.

As I posted on Twitter yesterday, these guys stuck to the 7-Step Penny Stock Framework like glue.

Look, this guy and his groupies are just one of many promoters out there. They weren’t the first and won’t be the last.

But I KNOW about them. I track them. I call them out. I use their tricks against them to make a profit for myself.

If promoters weren’t around, I’d have to rethink some of my strategies.

Yet, as long as these guys throw up ‘bro’ pictures and talk about how great they are, people will get sucked into their nonsense.

However, it’s easy to see when these guys are at it. They’ll talk up penny stocks and present a story as if the company is investable.

I can’t think of one time I looked at a penny stock and said to myself, “man, I want to own that company.”

These are trades, not investments.

99% of penny stock companies don’t turn a profit, let alone generate positive cash flow.

They are just vehicles for the hope that a series of fortunate events will take a no-name company into a real business.

That rarely happens.

And it’s why my Penny Stock Framework plays out all the time.

Promoter greed fuels the same behaviors that inevitably lead to the Supernova lifecycle.

But at the end of the day, they can’t pass the sniff test.

They’re all hype and no substance.

All you have to do is look one or two layers below the surface to see what’s really going on.

Don’t assume ANYONE is on the up and up until they prove themselves.

I don’t care if they’re a regular on CNBC or your best friend.

The proof is in the pudding.



How much has this post helped you?

Leave a reply

Author card Timothy Sykes picture

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”