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Trading Tips-Tim Sykes Penny Stock

How to Spot Trade Scams

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Written by Timothy Sykes
Updated 10/31/2022 7 min read

I see it every day…

Folks shaking their heads in frustration.

They listened to bozos like Jim Cramer…picked up Meta Platforms Inc. (NASDAQ: META)…right before it plunged on earnings.

Would you take investment advice from this guy?

Now, they’re left holding the bag while he keeps getting paid to reel in more victims.

I can’t make you a good investor.

But I CAN help you become a GREAT TRADER.

I’ve got 20+ millionaire students, and I’m just getting started.

Do you know why I post every trade I take right here on Profitly for anyone to see, whether you’re my student or not?

Because there are tons of scammers out there, many operating right there out in the open.

That’s just one of the many reasons folks take my Millionaire Challenge.

They see that what I teach is the REAL DEAL!

Unfortunately, many of them get hustled before they land on my doorstep.

The good news is if you’re reading this, then it’s not too late.

Give me five minutes of your time, and I’ll show you how to spot scam traders in a hot second.

Because even if you never take my Challenge, and I hope you do sign up, there’s no reason you should get fleeced by some grifter.

Everyone Loses Once

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At the time of writing this blog post, my year-to-date profits stood at $124,909.82.

Check out every trade I’ve made right here.

Search for ‘stocks’ or ‘stock market’ on any social media platform and you’ll quickly find posts on this or that trader highlighting their big wins.

But if you look deeper, many of them ONLY show big wins.

Here’s one of my losses from the other day.

If someone never posts their losses, you have every right to ask them to show you their full trade list.

See how many actually send it over.

Only So Many Winners

top penny stocks list September 13, 2021 Tim Sykes drinks coffee in Positano Italy working on Mindset Master
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My win rate is roughly 77%, which is pretty darn high.

Jack Kellogg, my Millionaire Challenge student who surpassed $10 million in trading profits at just 24 years old, only wins around 61.5% of his trades.

The highest win rate I’ve heard of is around 90%. And that’s exceptionally rare, and I’d argue, unsustainable.

Successful traders with win rates at the higher end tend to top out around 75% or so.

I would be suspicious if you see anyone with a win rate over 80%.

I’m not saying there aren’t traders who can or don’t win 90% of the time. But they are VERY RARE.

Unclear Strategy

Anyone who claims they can teach you how to trade should be able to explain their strategy.

I help my students design their own. My trading style exploits promoters and uses their games to turn a profit, combined with some technical analysis and Level 2 data reading.

However, let’s be real. Someone can be an incredible trader with millions in earnings. But if they can’t explain their strategy, how are they going to help you become a better trader?

They’re on Financial Cable T.V.

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Not everyone who shows up on television is a charlatan.

Heck, I’ve made plenty of appearances on different programs over the years.

But quite honestly, anyone like Cramer or who has a regular bit on CNBC isn’t going to be able to teach you how to invest, let alone trade.

They’re getting paid by the network to entertain folks and bring in viewers for advertisers. Whether they make you a better trader or investor is an afterthought.

What Do You Get For The Money?

My Millionaire Challenge includes thousands of hours of content from videos to DVDs to daily commentary and blog posts.

You should get what you pay for.

If someone only posts one trade idea per week with thin educational videos that you could find on YouTube, then the price should match.

A Word About Trading Real Money

Not everyone out there trades real money. That doesn’t automatically mean they’re a scammer.

There are many reasons, legal and otherwise, why a trader or mentor doesn’t trade real money.

You need to decide whether it’s important to you or not.

Plus, not everyone who teaches trades.

Tim Bohen is a great example of someone who was a successful trader in the past.

Now, he focuses almost exclusively on teaching and mentoring traders.

You can even check out his free YouTube Livestream on Mondays at 8:30 a.m. EST.

Parting Thoughts

candlestick reversal pattern examples
© Millionaire Media, LLC

There are a lot of folks out there who are more than willing to take your money.

I’ve met tons of ‘wealth advisors’ at major banks who don’t know squat and are all too happy to take your money.

I’m sure you’ve seen folks on Twitter who sell their trading ideas that turn out to be duds.

I’ve also met legitimate teachers who help people become successful traders.

At the end of the day, only you can decide whether someone is trying to pocket your money or truly help you.

I believe in what I teach and I know it works because I have 20+ millionaire students to prove it.

But don’t take my word for it.

See for yourself if it’s right for you.

—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”