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NFTs And Trading Penny Stock Online Beginners Tips: Blockchain Basics & Beyond

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

Looking for reliable trading penny stocks online beginners secrets and tips?

I used to make fun of non-fungible tokens (NFTs). Then I saw how much money traders were making — for instance, my millionaire student Matthew Monaco made $53,804 profit on a single NFT trade.

I changed my mind and decided to learn more about this multi-billion dollar industry. It was eye-opening.

I believe that NFTs are creating some of the BIGGEST opportunities out there for traders.

I’m so excited about NFTs that I’ve started a whole community dedicated to trading them. Wanna learn more? Join me TONIGHT — Wednesday, March 30 at 8 p.m. Eastern — for a once-in-a-lifetime event … Plus, I’m giving away a limited supply of my first-ever NFT collection! 

Don’t Miss This! 

Ready to jump-start your NFT education? Keep reading…

 

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What Is An NFT? Trading Penny Stocks Online Beginners Tips

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NFTs might seem like they spontaneously exploded last year, but they’ve actually been around since at least 2014. Sometimes it just takes time for momentum to build. Any reliable trading penny stocks online beginners tips should explain how to do that.

Not sure what they are? Let me explain.

NFTs are digital collectibles. They represent assets that might include:

  • Artwork
  • Digital fashion
  • GIFs
  • Music
  • Sports highlight reels
  • Videos
  • Video game skins
  • Virtual avatars

Why own a digital version instead of the real thing?

That’s the “non-fungible” part of the equation. Fungibility refers to the fact that the individual parts that make up something are interchangeable.

For example, take bitcoin. That’s fungible — one bitcoin will always have the same value as another bitcoin.

NFTs are non-fungible. Every single NFT is completely unique. So, for instance, if you have a sports highlight reel NFT, it has no equal. So you can’t trade it for something of the same value.

Each one has specific information that distinguishes it from any other NFT. It also contains built-in authentication. That’s your proof of ownership and how NFTs are verified. No two can be identical, because every item has a unique digital ID.

Still confused about why it’s worth owning an NFT?

It all boils down to scarcity.

NFTs create digital scarcity. As traders know, when there’s not much supply but a LOT of demand, it can make a stock price go crazy. Same goes for NFTs.

Just look at the money: In 2021, NFT sales topped $25 billion.

My student Adam was part of the NFT mayhem. He made $1 million on an NFT project — he’ll be joining me during tonight’s event.

Meantime, learn more about him in this post and in this interview he did with my 30-Day Bootcamp collaborator and crypto whiz kid Matthew Monaco:

How Is an NFT Different From Cryptocurrency?

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NFTs and crypto are frequently put in the same category. It’s easy to see why…

  • Like cryptocurrencies, NFTs exist on a blockchain. That’s a public ledger that logs transactions.
  • NFTs are typically encoded with the same software as cryptos. Actually, a lot of NFT tokens were created using ethereum token standards.
  • NFTs are bought and sold online, usually with cryptos.

But they’re not the same. Let me explain … Consider the difference between fungible and non-fungible.

Cryptos are currency. They’re fungible. The value of one unit will always be equal to the value of another unit.

NFTs, on the other hand, are non-fungible. They have digital signatures that make it impossible to have an equal.

Blockchain Basics and Trading Penny Stocks Online Beginners Secrets

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Like I said earlier, NFTs are units of data stored on a blockchain.

Ethereum is one of the most popular NFT blockchains. But it’s not the only one.

There are some exciting up-and-coming NFT blockchains like Polygon and Solana that have a few advantages.

For one, they have lower fees — and the transactions are faster.

Personally, I prefer Solana. They’ve optimized the speed of transactions in ways that make it more environmentally friendly than ethereum. This is important to me. Maybe you’ve seen how I try to save the world with my charity, Karmagawa. See? We all need these kinds of trading penny stocks online beginners secrets.

How to Buy NFTs

Interested in buying an NFT? Here’s what you’ll need:

  • A digital wallet for storing your NFTs and cryptocurrencies. Check out my post on crypto wallets.
  • Cryptocurrency — this depends on what the NFT seller accepts. You’ll need to purchase it on a crypto platform.

Now, all you have to do is find NFTs. Easier said than done. We’ll go into a LOT more detail during tonight’s event. Have you signed up yet?

More NFT Know-How

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I’ve written a bunch of posts about NFTs lately — do yourself a favor and read all of them. Invest in your knowledge account BEFORE the event so you can be prepared!

Are You in the Club?

The opportunities in the NFT market are too big to ignore.

I’m super pumped about this up-and-coming market. I think the opportunities will become even bigger and better in the near future.

If you’re ready to diversify and maximize on this once-in-a-lifetime chance, join me for this event. Don’t sleep on this. I’m even giving away a limited supply of my first NFT collection!

Get access now!

Are you as excited about NFTs as I am? Leave a comment and let me know what you think. See you at the event tonight!


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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”