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Trading Tips-Tim Sykes Penny Stock

How to Turn a Small Account Into Millions

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Written by Timothy Sykes
Updated 11/16/2022 5 min read

Billionaires can’t teach you how to build up your small account.

The type of trading I teach doesn’t even land on Ray Dalio’s or Bill Ackman’s radar.

These guys take single positions that are more than I’ll earn in a lifetime.

Try asking them how to turn a $6,000 account into $2 million, and they’ll stare at you like a deer in headlights.

But you know what?

That’s EXACTLY what I did with Kyle Williams when he took my Millionaire Challenge.

At 26 years old, he’s one of several students who started small and became millionaire traders in just a few short years.

Business Insider just did a wonderful piece that catalogs Kyle’s incredible journey.

To date, I have over 20+ students who entered my Millionaire Challenge that grew small accounts into millions, and the list continues to grow.

People always ask me how they did it…what all these folks have in common.

It’s surprisingly simple…

Learn From a Real Trader

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Every one of my trades is posted on Profitly for anyone to see.

All my profits are donated to charity at the end of each year.

Try getting that same transparency from any other trading service out there.

I don’t just talk the talk, I walk the walk.

I can’t teach you how to invest $100 million.

I CAN teach you how to grow a few thousand dollars into a decent size.

CNBC, Bloomberg, Fox Business, and all the other financial media outlets focus on what Warren Buffet’s doing or the latest moves by Leon Cooperman.

People are enamored with wealth and assume wealthy people can teach them to become just like them.

I hate to break it to you but you can’t do what they do.

Billionaires can’t teach you how to trade.

Sure, they might give you an insight or two on investing. But even that’s iffy since they can get better deals than your average Joe.

I teach repeatable patterns that occur over and over.

This is the foundation I provide every student.

However, it’s only the first step to becoming a millionaire trader.

Learn to Lose Small

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People get it stuck in their heads that you’ll never make any money if you cut losses quickly.

Let me tell you something that Kyle highlighted in his presentation at our trading conference.

Most traders never make it to breakeven BECAUSE of losses.

You see, the journey to profitability has three stages:

  • Stop losing
  • Breakeven
  • Turn a profit

I would say that 90% of traders never make it to the second stage.

They never learn how to control their losses.

Think about how many times you or someone you know built a nice winning streak only to wipe out those gains in a fraction of the time on one or two trades.

This happens ALL THE TIME.

I teach my students to train themselves on taking a loss.

Yes, they actually practice taking losses so when the time comes, they don’t second-guess themselves.

You won’t become a millionaire trader if you don’t first learn how to survive.

Find Your Edge

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Ironically, Kyle Williams is best known for his short-selling these days.

Because back in the beginning, he first found his stride with dip buying.

It was the first strategy that got him out of the gambling mentality and more consistent in his results.

As a short-seller, Kyle is fully aware of his risks.

In fact, that’s a key focal point in all of his trades.

He knows exactly his risk and where he’s wrong on the trade.

But he’s also not afraid to push the envelope when the odds are in his favor.

For example, Kyle made more than $2 million in 2021, thanks in large part to the bubbles formed in the market.

Yet, he always remained cautious, knowing those bubbles would eventually pop.

When they finally did, he kept his cool, managed his risk, and traded methodically.

2022 hasn’t been nearly as profitable for Kyle. However, unlike most traders, he’s well into the green.

And that’s what it’s all about.

Kyle works his strategies and styles day after day, week after week.

You won’t make money following trade signals, at least not consistently.

Every one of my millionaire students carved their path baking in their unique insights and personalities.

Every one of my millionaire students dedicated the time to studying hard and practicing.

That’s what it takes to grow a small account into millions.


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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”