Why Penny Stock Promoters Are So Evil

By Timothy Sykes

Last updated on December 20, 2022
Why Penny Stock Promoters Are So Evil Thumbnail

Don’t dismiss promoters as just another part of the market.

Twitter handles make it easy to ignore the truth…

Promoters destroy real lives!

Zack Morris and Atlas Trading presented themselves as ‘bro’ traders with absolute authority.

Whenever I questioned their legitimacy, their followers came out of the woodwork to defend them with blind devotion.

Then, the bedrock of trust turned to sand.

The SEC indicted the group on fraud charges totaling more than $100 million.

There were real people caught up in their scams.

Tweets like this were just a sample of the outrage…

Look, I know how easy it is to get swept up with these groups.

They work just like a cult, making you feel special and part of some secret group of insiders.

I can’t stop these folks from popping up like weeds.

But I CAN help you identify them and ask the right questions.

And that starts with realizing ALL promoted penny stocks follow my 7-Step Penny Stock Framework.

Every Penny Stock Fails

Here is a picture of my 7-Step Penny Stock Framework:

Print this image and stick it next to your computer.

I know someone will read this subheader and be like, “Tim, I found stock ABC or DEF that went Supernova and never came down.”

The amount of times this happens is so rare I can’t honestly remember one.

So, rather than nitpicking my broad statement, just go with the fact that the odds favor to the point of a near guarantee that a Supernova penny stock will fail at some point.

Promoters trick you into thinking that you’ve found that diamond in the rough, that one penny stock destined for glory.

They cherry-pick data and present you with the best face possible for these stocks.

Yes, I trade alongside these guys knowing what they’re up to.

However, I treat it as just that – a trade.

My morning panic dip buys last minutes.

I never pick up a stock thinking the company is in a prime position to return value to shareholders.

Heck, I rarely hold trades overnight.

And when I do, it’s almost always tied to a news catalyst I pulled out of our StocksToTrade Breaking News Chat.

The difference is promoters want you to buy the stock to sell it to you at higher prices.

I try and ride alongside them.

Additionally, former Supernovas can and often do bounce.

Dark Pulse Inc. (OTC: DPLS) is a stock I recently traded when they announced the stock would list on the Nasdaq.

This stock ran hard several times after its initial Supernova back in late 2021.

That was when the CEO blocked me on Twitter for calling the stock what it was…a Supernova.

But like every other penny stock, it eventually died.

Trading Alongside Isn’t The Same

Tim Sykes checking his top penny stocks list in Italy
© Millionaire Media, LLC

Let me be very clear about something.

I don’t view exploiting the conditions created by promoters as off limits.

In fact, that’s how I teach my students to create an edge.

Think about it more simply…

If I know there’s a short-squeeze potential when price breaks a certain level, I’m going to trade the setup.

I call out these promoters because they come up with insane price targets based on nothing but hot air and Danielle Steele-like stories.

They want the stock to go up because they ALREADY OWN shares.

I don’t.

I buy stocks based on the price action and what I see as their manipulation.

But I don’t go out and call a stock a raging buy when I own shares.

That’s a pump and dump.

All of my trades are posted for anyone to see on Profitly.

Someone who won’t post their trades or provide them should be treated with extreme caution.

And you know what gets me suspicious immediately?

Someone who calls me out as a short-seller.

Because the last stock I shorted was Global Tech Industries Group (OTC: GTII), which was my second short for all of 2022.

These guys like to pick fights to get more people following them and drag them into these garbage stocks.

That’s their game.

And listen, I’m wrong sometimes. I’ve had losing trades, some of them were pretty nasty.

I don’t hide them.

But I also see the market for what it is.

Just because a promoter looks right in the short-term doesn’t mean they’re worth the pixels on your screen.

Treat all of them with extreme skepticism.

And then use that mindset to trade profitably.



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Comments (1)
Author imageTimothy Sykes
Hey Everyone,

As many of you already know I grew up in a middle class family and didn't have many luxuries. But through trading I was able to change my circumstances --not just for me -- but for my parents as well. I now want to help you and thousands of other people from all around the world achieve similar results!

Which is why I've launched my Trading Challenge. I’m extremely determined to create a millionaire trader out of one my students and hopefully it will be you.

So when you get a chance make sure you check it out.

PS: Don’t forget to check out my 30 Day Bootcamp, it will teach you everything you need to know about trading.

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