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Trading Tips-Tim Sykes Penny Stock

How To Shorten The Learning Curve

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Written by Timothy Sykes
Updated 12/15/2022 5 min read

Albert Einstein said it best, “Two things are infinite: the universe and human stupidity, and I’m not sure about the universe.”

Traders waste so much time chasing strategies that don’t work.

They refuse to set their ego aside, instead toiling at marginal setups.

Some of them ignore my 7-Step Penny Stock Framework just because it appears too easy!

Yet, with 20+ millionaire students and counting, what more proof do you need?

That’s why I get so excited to see my students succeed.

Eduardo Briceño is one of my favorite stories.

Last year, I interviewed him as crossed $600,000 in trading profits.

Today, he’s closing in on the big $1 million mark and I couldn’t be prouder.

Eduardo started my Millionaire Challenge back in 2016.

Initially, he lost a few grand in the first year and broke even in the second year.

It wasn’t until the third year he turned a profit, and it was only around $24,000 or so…but it was something.

Yet, it wasn’t until he changed his mindset that things really took off.

You see, Eduardo moved to the U.S. from Venezuela.

Like most folks, he wanted to trade full-time.

However, as he pointed out in the interview, trying to make $5,000 off a $5,000 account regularly isn’t a recipe for success.

So, what did Eduardo change that put him on the path to profits?

And, more importantly, how can it help you on your journey?

Let’s find out…

Full-Time Isn’t For Everyone

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Mark Croock, one of my most successful students, quit his accounting career to trade full time.

Jack Kellogg worked as a valet while learning the ropes.

Mariana spent an entire year studying after high school without placing a single real-money trade.

These folks dove in with both hands.

That may not work for you.

Eduardo needed to provide for his family first before learning to trade…which is very common.

Most people aren’t willing to quit their day job, or it’s simply not practical.

That’s fine.

It doesn’t let you off the hook when it comes to study time.

Even if you work a solid 9-5, you still need to review the charts, watch the videos, and learn the basics of the 7-Step Penny Stock Framework.

A lot of people choose to go with my Weekend Trader as a way to get their feet wet and start building their account.

You have to do what’s comfortable and achievable. Don’t try to be something or someone you’re not.

Everyone’s journey is different.

All that matters is you set aside the time to study and use it productively.

Learn About Short Sellers

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It’s been a long time since I took a short position.

But, I know all about short sellers…how they act… where they cover…when they’ll pounce.

This information is invaluable to long-side traders.

Think about it…

If you know where a short squeeze is likely to occur, what can you do with that information?

When a stock is in the initial ramp phases of a Supernova, this creates awesome breakout trade opportunities.

Conversely, once a stock peaks and then drops hard, you know short sellers will lock in profits along the way.

Combined with the knowledge of promoters, we can determine where shorts are likely to take profits and where promoters might step in to support a stock.

When this happens on the backside of a Supernova, it sets up awesome morning panic dip buy opportunities.

Understand Your Profile

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In my interview with Eduardo, he said something very interesting…

“35% of my trades give me 50% of my profits.”

Generally, profitable traders fall into two categories:

  • Consistent winners
  • Home run hitters

I’m in the first group.

My win rate is +75% and I tend not to ride trades very far. I take my profits and losses quickly.

Other folks like Matt Monaco run lower win rates. They take small losses, but when they win, they win big.

Some traders fall in between the two.

It’s important to understand where you fall and align your strategies and execution.

For example, a panic dip buy isn’t as likely to gain +30% as a breakout trade.

Swing trades tend to have lower win rates and larger gains.

Knowing what to expect can help you determine if and where you need to improve.

Don’t Give Up

Most traders are WAY better than they realize.

All they need is the right training to bring it all together.

Do yourself a favor…

Take my Millionaire Challenge and start making your time count.

—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 (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”