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Penny Stock Basics

How Transparency Wins the Day

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Written by Timothy Sykes
Updated 1/10/2023 5 min read

You may have noticed we live in one of the most amazing times in history …

The internet is arguably the most important and powerful tool since the invention of the printing press in 1439. You have access to so much information that you almost don’t need to use the old ways — the old styles of media.

But with so much information available, many people still aren’t living up to their potential. Instead of using the internet to study, they waste time on the wrong things like video games or watching television. Instead of using social media to be a positive influence, they use it for spreading negativity.

Are you living up to your potential? Are you making the money you need to live the life you want? Are you making enough extra money to be able to make a difference in the world?

Belief and Transparency Win the Day

One of the reasons people don’t achieve their dreams is because they don’t believe. They might ask what it’s like to be a millionaire. They might even say “Teach me to be a millionaire.”

But either they don’t believe it’s possible or they aren’t willing to put in the time and dedication to make it happen. They believe failure or losing is bad and they give up too soon.

What I teach isn’t a get-rich-quick program. I believe what I teach can speed things up but it still takes thousands of hours of study. It takes small losses and small failures. I’m just keeping it real. I’m being transparent.

History Teaches Powerful Lessons

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One of the reasons I’m so transparent with what I teach is because it gives my students a clear picture — a real picture — of how success works. There’s good and bad that comes with money. Nobody teaches you how to ‘be’ once you get rich. You’ll have to change your perspective and find new meaning in your life.

The ancient Egyptian civilization lasted nearly 4,000 years. Do you think they did everything right? They did some things right and some things wrong. But they lasted a very long time. They learned from their mistakes and changed to continue and move forward.

When you break down how I trade — how my students trade — there are something like 20 key patterns. Each student has their own personality so they choose which patterns suit them. Then they learn them inside-out by studying the past — by studying history.

Transparency Gives You Perspective

The main reason I’m transparent with everything is because I want to pay my success forward.

I share pretty much every aspect of my life. I share trading wins but I also share losses and failures. Without my losses and failures, I’d be an incomplete trader. I’d be an incomplete teacher. And I’d be an incomplete human. Failure gives you perspective.

I want my students to be successful — and not only with making money. Yes, I teach people how to trade. But I teach more than that. That’s what the transparency is about. I want my students to be more fulfilled as people.

Wouldn’t you rather feel like a complete and fulfilled person than the alternative? I think there’s so much you can do with money and a lot of rich people don’t do it. A lot of rich people aren’t happy and they live unfulfilled lives. What would you do if you had all the money you need to live a great life?

Imagine what it would mean to get out there and see what you can do …

… to make the world a better place.

Beware the Guru Who Lacks Transparency

I teach my students how to recognize and avoid trading scams. But it starts before that. It starts now. Why? Because there are dozens of trading ‘gurus’ out there scamming people. They’re not transparent. They don’t share their losses as well as their wins. All they care about is taking people’s money.

They con you into “get rich quick” and “you don’t have to study that hard. “ That’s absurd!

I see a lot of people with bad habits developed by studying with some of these scammers. Sometimes my first job is to help traders break bad habits. I teach them rules and help them develop discipline.

Transparency. That’s what it’s all about. I will teach you, but you have to be willing to put in the time and effort.

Would you like to know more?

The Trading Challenge is my highest-rated program. Every one of my top students is part of the Trading Challenge.*

Apply today. Be aware, not everyone who applies gets accepted. The Trading Challenge is a program requiring dedication, effort, and commitment.

It’s an amazing time in history. Are you ready to live up to your potential?

Click the red button above and enter your email address to start the application process. 

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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

* 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”