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Millionaire Mentor Update: Penny Stocks to Buy for Long Term

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Written by Timothy Sykes
Updated 4/9/2022 17 min read

The most difficult thing is to know what penny stocks to buy for long term, right?  In this week’s update I want to highlight the importance of thinking long-term with penny stocks.

If you’re new to trading penny stocks — take advantage of my FREE penny stock guide here.

I know the idea of thinking long term with penny stocks probably sounds strange … I often hold a stock for no more than a few minutes. At most these days, I hold overnight if all the criteria line up just right.

So what do I mean? Read on to find out.

But first…

Three Weeks of Crazy Travel

I’m writing from Japan where Karmagawa and Mindseeker partnered for a back-to-school charity fashion launch. I’ll tell you more about that, but first…

… truffles.

Truffle Tasting in Italy

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I was in Italy for truffle tastings last week. It was an amazing trip. I love truffles. We planned to do a truffle hunt, but it rained every single day. On the day of the planned hunt, it was pouring rain so we couldn’t do it.

But … I still had the chance to eat truffles. And I did — a lot of truffles.

Let’s get back to the charity merch popup…

Karmagawa and Mindseeker Featured by HYPEBEAST

I flew from Italy to Japan for a popup event on November 30 featuring Karmagawa/Mindseeker merch. Mindseeker is street-culture-inspired clothing. They’re all about expressing who you are through what you wear. So the collab is a good fit on many levels.

The “Back to School Event” got a writeup on HYPEBEAST. (HYPEBEAST is a fashion/news/culture website.) The article is in Japanese. But even if you don’t read Japanese you can check out the photos of our new charity merch (and you can use the Chrome web browser to get a rough translation of the piece).

Basically, the article mentions Mat Abad and me. It talks about the schools we’ve opened, including one of the recent school openings in Bali: the Mindseeker School. Then it goes on to say how the merch created from the Mindseeker Karmagawa collab is a little different thanks to the Mindseeker design team.

watchlist banner

Finally, it mentions that all the profits go to Karmagawa-supported charities — specifically the Bali Children’s Project. So now we have this line of Japanese fashion, which is really cool.

Black Friday/Cyber Monday Deals on All Karmagawa Merch

If you haven’t taken advantage of Karmagawa’s Black Friday deal, time is running out. When you order, enter the coupon code “blackfriday” (all lower case, all one word) to save 50% on your purchase. It’s a win/win. You’ll help us donate to more charities and save money, too.

Sustainable Environment Projects Meeting With the Governor of Tokyo

I also met with the governor of Tokyo, Yuriko Koike. That was amazing. We’re trying to create a number of sustainable environment projects ahead of the 2020 Summer Olympics next year. So we’ll see how that goes.

It’s cool that she has a strong background in environmental awareness. Back in 2006, she started the Mottanai Furoshaki campaign — encouraging shoppers to use the traditional furoshiki wrapping instead of plastic shopping bags.

Shibuya City Cleanup

Next, we did a local city cleanup in Shibuya. Shibuya is a big commercial/business center in Tokyo. It’s home to the two busiest train stations in the world. But it’s also one of Japan’s main fashion centers — especially for the younger generation.

When we did this local cleanup … it was raining. In the end, we only did like 30 minutes because everyone was cold and wet. But … we cleaned up a lot of trash.

Local Trash Cleanup Challenge

The Shibuya local area trash cleanup got me thinking…

I encourage everyone to clean up trash in their own area, including you. But let’s make this fun — and a challenge.

Either go do a trash clean up yourself, or organize something in your local area. Then tag Karmagawa and SaveTheReef using @karmagawa and @savethereef on Instagram. We’ll repost the photos and videos of your cleanup. I think it’s kinda cool to get everyone inspired. Let’s see if we can create a viral sensation with this. And let’s see who can collect the most trash.

What’s the prize? Knowing you did the right thing.

The Trials of a Traveling Trader

Meanwhile, I’m also trading. There were lots of holiday plays during the short Thanksgiving trading week. Interestingly … even though I had the right idea about holiday trading, I had my biggest loss of the year on Friday, November 29.

I’ll go over that trade briefly, but first, let’s take a look at the big picture. The idea is we are all looking for the best penny stocks to buy for long term.

How to Think Long Term+ Know What Penny Stocks to Buy For Long Term

Before I explain how to think long term with penny stocks, it’s important to reiterate … hold and hope is NOT a strategy. It’s just asking to have your butt handed to you on a platter. So when I talk about the long term — I’m not talking about buying some BS about a company and hoping for the best.

I’m talking about being able to discern between acceptable losses and gains, over time.

Check it out…

In the past 30 days — after taking my biggest loss of the year on Friday — I’ve only made just over $2,700 from trading. That’s very interesting to me. I didn’t even know it was that bad until I looked. Sometimes that happens.

But if you look at my trades page on Profit.ly and filter for the last 90 days, I’ve made $28,270. And if you filter for one year, I’ve made over $122K.

[My results are not typical. I’ve put in time and dedication to develop exceptional skills and knowledge. Most traders — around 90% — lose money. Trading is risky so never risk more than you can afford.]

So it’s not just any one day, week, or month. You gotta think longer term.

More times than not — roughly 75% of the time — I win. But I also don’t force trades. And I don’t hold and hope. Recently, we haven’t really had a hot sector. Instead, we have short squeezes. And now we have holiday spikes, which, frankly, aren’t always my forte.

I’m OK with that. Sometimes, the best trade is no trade. There are times when I go a week without having any profit. It happens. And my loss on Friday — during a live webinar — was my biggest loss of the year … times three.

My Biggest Loss of 2019 Live and in Living Color

The trade was Can-Fite BioPharma Ltd. (NYSE: CANF). I won’t go into too much detail in this post. I’m writing a post about trading small/cutting losses, and I’ll feature this trade. (Watch for that dedicated post in the next few days.)

But take a look at the chart from November 29 to get an idea what I was looking at…

canf stock chart
CANF chart, November 29: the stock failed to spike at market open, bad execution as I tried to cut losses — courtesy of StocksToTrade.com

As you can see, I was dead wrong on this one. Not only did it not spike at the market open, it tanked. And I couldn’t get out fast when I lost my connection. I’m proud of being transparent with all my trades — both wins and losses. So the good news about this trade is that it happened during a live webinar.

My Trading Challenge students actually loved it…

What Trading Challenge Students Had to Say About My Trade

In the Trading Challenge chat room on Profit.ly, they were saying things like…

09:46 AM petros_rok_nation → timothysykes: One of the best webinars I have been part of. Only because that execution bs. Good to hear your voice again, thanks Tim.

09:49 AM NEOTHEONE → timothysykes: Tim thanks for this webinar..very helpful to learn about executions.

09:49 AM Peachtart → timothysykes: Anyone who doubts you are real…today’s webinar certainly proves it !!

While I appreciate those comments, I was saying, “Screw that! Yeah, I’m real — but this sucks.”

Trading Challenge student BassamMichael was more aligned with the way I was thinking…

09:50 AM BassamMichael → timothysykes: sorry Tim that sucks.

Oh well. A loss is like a breakup. My emotions were a little frazzled. So I wasn’t looking to make a trade after that. I see a lot of newbies and even experienced traders make the mistake of revenge trading. Don’t do it.

Instead, I made a video lesson during the live webinar…

Want access to a library of 6,000+ video lessons, including the CANF lesson? As a PennyStocking Silver subscriber, you’ll get that plus my daily watchlist and access to the TimAlerts chat room. Our Black Friday deal is still on — get 50% off a yearly subscription today. And you can also get Black Friday deals on all my DVDs. But hurry — these deals won’t last long.

How My Biggest Loss of 2019 Played Out

The trade was a loss because I was wrong on the stock. But — and this is important — my mistake was compounded when I couldn’t get a sell order executed.

Maybe you’re asking, “Why didn’t you just cut losses quickly like you always say to do?”

I tried. I’m trading from overseas and for whatever reason my software lost the connection. Maybe it was my Wi-Fi connection or maybe it was a broker thing. Who knows? That’s out of my control.

Oh, and if you’re wondering, I use these brokers. I’ve said it in the past and I’m sure I’ll say it again … the brokers I use suck the least. None of them are perfect. Sometimes you have a loss because of connection issues. The key is to trade small, trade conservatively, and cut losses quickly.

supernova placement

So I was wrong, but it should have been an $800 or $1,000 loss. That still would have been my worst trade of the year.

But it was double that size based on my travel. Which brings up a very important idea. This idea is so important because once you get it you’ll realize how easy it is to move on from a loss like I had on CANF. Check it out…

I’m Happy to Pay a Freedom Tax

I think of trades like this as a freedom tax. Or a travel tax. I could make more money trading by sitting in an office in New York and trading all day. But I would hate it. I literally trade from all over the world. I’m free. I get to travel, meet amazing people, eat incredible food, and do charity work.

So if I occasionally take a loss like this it’s no big deal. That’s trading sometimes. It’s frustrating, but you just gotta learn to deal with it. Especially if you really want to experience freedom.

What I Said in My Premarket Watchlist

The crazy thing is that while I was losing on CANF, ASLAN Pharmaceuticals Limited (NASDAQ: ASLN) was spiking big.

And it was the exact price action I wanted for CANF. It was the exact price action I described in my premarket watchlist. So I was right on track, but I chose the wrong stock. Then I compounded the mistake with the software issue.

Here’s what I said in my watchlist on Friday…

CANF has a history of failed spikes so be careful chasing it. 

And also…

Remember today is a shortened trading day so holiday trading rules apply. Stocks can spike MUCH more than you realize and it can happen quicker than you realize, too. So be on guard and be safe … because these stocks can crash faster than you think, too.

👉🏼 SUBSCRIBE to my FREE weekly stock watchlist here.

Which brings me to a reminder and hint about another upcoming blog post…

Holiday Trading Is Here: Know What Penny Stocks to Buy For Long Term

As I post this, holiday trading is upon us. Historically, people go in and out of the market during December. But especially around Thanksgiving and Christmas, you get many more wannabe traders. And they can create these ridiculous holiday spikes. So … be ready.

With that in mind, I’m writing a post about holiday trading. In it, I’ll give several examples of holiday spikes from Friday. Hopefully, it will help you prepare for potential holiday spikes around Christmas. And also the January Effect. Keep watching the blog for that one — it’ll be up in the next few weeks so you have plenty of time to prepare.

(I wrote about both Black Friday and the January Effect in this post.)

In the meantime … if you haven’t read “The Complete Penny Stock Course” you need to — right away. It’s the only book with all the foundational knowledge you need to get started. I didn’t write it, but I recommend it all the time — it’s that good. If it’s not sitting dog-eared on your desk, you haven’t read it enough. Seriously.

Millionaire Mentor Market Wrap

That’s another update in the books. This one is trying to also show you which penny stocks to buy for long term.

I hope these updates inspire you. My goal is to be the trading mentor to you that I never had. But I also want to show you what’s possible when you choose to live the life of your dreams.

Travel, amazing food, amazing people, giving to charity … it’s all there for you. But you gotta be willing to put in the time up front to enjoy the benefits later. There’s no easy button. There are no shortcuts. Get on it.

The Trading Challenge is my immersive penny stock trading program. It’s not for everyone and, frankly, we don’t accept everyone. Apply for the Trading Challenge here.

Or, subscribe to PennyStocking Silver here.

Finally…

More Challenge Chat Room Comments From the Live Trading Webinar

These are just a few of the many comments from the Trading Challenge chat room during my webinar on Friday, November 29…

09:59 AM D22 → timothysykes: this a good webby! enjoying it.

10:35 AM Tommy_D → timothysykes: Love seeing the behind the scenes, Tim.

10:36 AM Familyguy → timothysykes: Awesome video lesson and webinar! Thanx again for being so REAL and honest!

10:37 AM CrazyWillows → timothysykes: HELL YEA!!! That was awesome!!!

10:38 AM Bazz → timothysykes: Great lesson, Tim. Sucks that you had a loss but you do have an amazing record for profits.

10:39 AM Kingsalini → timothysykes: THIS IS THE S***!! Love the experience of today GuruYoda never in the time I been a challenge students this is dope!

10:40 AM ScottSchmitz → timothysykes: I bought the dip on CANF. In at 3.37 out at 3.4. I cut losses early because I just learned from tim that if the trade doesn’t do what you want to quickly exit stage right. Thanks for your CANF trade for my learning.

10:41 AM CrazyWillows → timothysykes: Thank you so much Tim!!!! Awesome webinar and brilliant lesson!!! YOU’RE THE BEST!!

10:41 AM D22 → timothysykes: thanks for webby, and VL!! talk soon Tim. awesome morning.

10:42 AM StevenHoechstenbach → timothysykes: Thanks Tim, I always appreciate the transparency!

10:42 AM ElleDiane → timothysykes: Thanks Tim. You’re not an idiot. We’re at the mercy of our machines sometimes.

10:42 AM handyman → timothysykes: thanks Tim for being real always encouraging.

10:42 AM Filemon → timothysykes: Thank you Tim!!

10:42 AM TonyG1 → timothysykes: Thanks Tim…Much appreciated!

10:42 AM Outdoorchick → timothysykes: Thanks Tim for the great webby and video lessons.

10:42 AM MoonShot → timothysykes: Thanks Tim. Happens to the best of them, but good to watch.

10:43 AM Bec → timothysykes: Great first lesson. Thanks Tim.

10:43 AM P70KCJ → timothysykes: great webinar. thanks tim.

10:43 AM stefano321 → timothysykes: thank you.

10:43 AM Bazz → timothysykes: Thanks for you time and coaching, Tim.

10:43 AM winnie4life → timothysykes: Good video Thanks.

10:54 AM Kingsalini → timothysykes: No apology needed that s*** was dope…..You can even learn how to track your losses on a recorder mad s*** you can take from what you just did GuruYoda.

[Note that these results aren’t typical. These students put in the time and dedication and have exceptional skills and knowledge. Most traders lose money. Always remember trading is risky … never risk more than you can afford.]

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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

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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 (205) 851-0506 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”