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Promoters- Tim Sykes Penny Stock Trader

Why Penny Stock Promoters Hate Me

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Written by Timothy Sykes
Updated 10/19/2021 10 min read

Why Penny Stock Promoters Hate Me: Key Takeaways

  • The big lies penny stock promoters will tell unsuspecting newbies to lure them in…
  • I’ve seen this movie before — find out how it always ends…
  • Promoters hate me for giving away the ending. But that’s how I’ve made millions*…

Learn my top patterns for trading promoter hype!

I’ve made a career out of teaching small-account traders how to survive in the stock market. And I’ve donated over $5 million to charity in my trading career*…

So why do some people in the market hate me?

I’ll give you a hint — it isn’t because they care about YOU. Look, I don’t like being ‘that guy.’ I don’t want to pooh-pooh your hopes and dreams. But will I speak up if you’re about to blow up your account? Absolutely.

Here’s what you must know about promoters.

Show Your Trades!

How can you tell real traders from newbies and promoters? Ask to see their trades.

If the trader you’re following on Twitter has the position they say they do, let’s see it.

That shouldn’t convince you to buy what they’re selling. You should only trust your own research.

Because giving you FOMO is a promoter’s job.

Eline Entertainment Group, Inc. (OTCPK: EEGI) June 2021 chart — courtesy of StocksToTrade

Is this a promoter … or just some dummy with a Twitter account?

I don’t know.

What I do know is that the market would be a better place if everyone showed their trades. If this promoter actually traded EEGI, they’d have to own up to their mistake.

Dealing with promoters is like playing a game of Whac-A-Mole. That’s why I’m giving you a cheat sheet on the hate campaigns that promoters wage.

Why I Don’t Short Penny Stocks

This is one of the biggest lies you’ll read about me.

Why else would I call out their pumps? I must want the stock they’re pushing to tank, right?

I don’t blame promoters for lying about my motives. Lying is their job.

That’s why I started Profit.ly and why I show ALL my trades.

You can see every one of the trades that have brought me to $7.2 million in lifetime profits.*

I show all of my trades so my students can see how a self-sufficient trader works.

It isn’t by shorting sub-penny stocks or holding onto penny stock pumps

It’s by playing the same patterns that I’ve been using for the past 20 years.

What Promoters Don’t Want You to Know

I call out promoters because they’ve also been using the same playbook for the last 20 years. And some people still haven’t caught on!

I don’t know when these stocks will collapse. And I don’t short them. I don’t like the risk/reward in this market.

Yes, 99.9% of the time these stocks tank. My 7-step pennystocking framework shows the pattern they usually follow.

These simple patterns are a big part of what I teach. But when I point out the inevitable crash — Step #4, The Cliff Dive — that’s when promoters start attacking.

They tell their brainwashed followers that I’m responsible for the crash. How else could such a great stock have failed?

How to Tell Promoters From Actual Traders

First of all, watch out for ANYONE telling you to buy a stock…

Here are some promoters’ greatest hits:

  • “The DD on [insert junk stock here] is stunning.”
  • “Only the weak sell.”
  • “We’re in it together. Hold on and this will eventually go back up.”

Real traders know that they can only be responsible for themselves.

How can you be responsible for yourself? Always follow rule #1 and cut losses quickly.

How I Trade Stocks I Don’t Believe In

The second thing I teach my students is to go for small gains.

Promoters rip on this strategy. They want you to get greedy.

But we know how the story ends EVERY SINGLE TIME.

Look at this small win from last year:

I made $2,960 by dip-buying after a big spike.* It bounced (Step #6 from my framework) and I sold into strength.

This is how professional traders do it.

Sure, I left money on the table. Following my trading plan and not getting caught up in home-run dreams — that’s how I play it safe.

The Dreams You Should Focus On

Promoters make their money by selling hopes and dreams.

Dreaming about a better life is a beautiful thing. But you can’t get there by just hoping.

Look at these awesome students … Some of them now teach alongside me!

Kyle Williams is a millionaire trader who took ALL my ALL lessons to heart — from trading to giving back.*

Check out Karan’s amazing story… He’s less than two years into his trading journey but has already shown that hard work can pay off!*

I also want to mention my long-time student Tim Lento. He started following me in 2006. He’s got more tenacity than pretty much anyone I know.

Lento also built his strategy around OTC pumps. Instead of dip-buying, he prefers to short.

He just got over the $1 million mark in a BIG way.*

But the script was the same….

A stock spikes on sentiment. 99 times out of 100, it crashes just as quickly.

Lento hosts webinars for my Trading Challenge regularly. He brings something different than I do to the community.

His style is a bit more technical than mine. It’s not a contest. You become a self-sufficient trader by learning as many different styles as you can…

Think you have the discipline it takes? Apply to my Trading Challenge today.

Do you understand the mind games that penny stock promoters play? If you do, leave a comment saying, “I don’t buy the hype!”

Disclaimer

*Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. Most who receive free or paid content will make little or no money because they will not apply the skills being taught. Any results displayed are exceptional. We do not guarantee any outcome regarding your earnings or income as the factors that impact such results are numerous and uncontrollable.


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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”