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How To Make $5,000 With 10 Hot Stocks Under $5

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Written by Timothy Sykes
Updated 2/22/2021 4 min read

The following was sent to TIMalert subscribers at midnight last night as you were clicking Marketwatch looking at irrelevant futures…good job:

Great weekend research on the two stocks I’m short IMGG, which really reminds me of Spongetech Delivery Systems Inc. (SPNGE), and NPHC, see my report & the Dow Jones Newswire report

TIM trading account—now stands at $82,528, I made $2,400+ on my ZAGG breakout buy…just like VG, the breakout was expected by many, but it didn’t last very long, so I had to lock in profits, stock still finished around where I sold, could be good this week…now I’m up 94% in 2009 and up 565% in the last 23 months

Longer Term Account $162,586, I’m basically up $75 between my 2 short positions on IMGG and NPHC…betting that the world will value them just as their latest financings have, at 90% discounts to their current prices!….account is up 17% since May 1st, 2009 inception…you can auto-trade this account by chatting with Covestor here—

Nice day for TIMalert subscribers and I on Friday, $5,000ish in profits for us, congrats guys!

+$400 on ZAGG.
-Bill

great trade on ZAGG i made $350 paper money since i didn’t get my real fill…. none the less awesome!
-bassman

$900 profit on ZAGG, easy does it timmay!
-Jim T.

in and out $UCBH for $320 profit in about 10 minutes, probably waayy too quick.
-tbohen

+$57.55 on 500 ZAGG after comms. Hardly seems worth it
-tmcnally

+$65 on ZAGG, thx.
-Nltamas

$320 profit from shorting VG, small position for $80 profit on ZAGG. Several small gains for another good week.
-shearinfinity

Nutra Pharma Corp. (NPHC) finished unchanged Friday which is a huge win for bears considering they’re “breakthrough” cobra-venom pain reliever debuts this week…it’s still up from 5 cents/share to 70 cents/share in just the last month so expectations are already high…hugely negative Dow Jones article late Friday night reassures me in my short position…expect a PR and I might be forced to cover my 5,000 share position if the volume starts showing it can run back to its old $1 highs, but if my guess, and this is speculative, is right, the product will bomb and many buyers will sell, realizing that it’s better to buy on rumor, sell on news…my goal is to cover for 20-30 centsshare of downside from here.

Zagg Inc. (ZAGG) continued its breakout to the $6ish level, I sold early Friday morning at $6.10 (finally timed my exit well and got a $2,400ish profit) because the volume was weak, but the stock actually uptrended nicely all day…potential buy still, NASDAQ and/or earnings news could power this thing more, but then again the easy $ is made by buying the first breakout day, EXACTLY like Vonage Holdings Corp. (VG) whose strong one day breakout has now failed.

Hemispherx BioPharma, Inc (HEB) is for TIMalert subscribers only!

Imaging3, Inc. (IMGG) had its first down day losing 4 cents/share to 70 cents/share, potential double-top now over 2 weeks, fading volume and the ugly facts I expose in this blog post…I’m glad to be short 7,000 shares, but I keep it small just in case of the longshot FDA approval, goal it to make 20-30 centsshare of downside

ZOOM TELEPHONICS INC (ZMTP) just started trading last Tuesday at 5 cents/share and quickly zoomed to $5 in 2 days, now its already fallen to $2.65….tiny, tiny company, only 2 million shares out there and they have a wifi-like product which seems inferior to Mifi, but still could get hyped up nicely, especially for this being just a $5 million company at these prices…potential buy, but I gotta see more trading history first.

San West Inc (SNWT) is for TIMalert subscribers only!

Threshold Pharmaceuticals, Inc. (THLD) is for TIMalert subscribers only!

NXT Nutritionals Holdings, Inc. (NXTH) is for TIMalert subscribers only!

Trend Technology Corp. (TRET) is for TIMalert subscribers only!

Scientific Learning Corp. (SCIL) spiked from $3.50 to $7 Friday morning on solid earnings, but the stock faded to $5 by the end of the day as longterm bitter shareholders took the opportunity to breakeven…just watching, gotta see what’s more important in the coming days, selling shareholders or positive earnings?

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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.
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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”