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Why You MUST Expect The Worst Out Of Every Stock

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Written by Timothy Sykes
Updated 1/25/2023 7 min read

Nothing makes me more disgusted than watching traders lose money on something that can be so predictable…  

Yet, it continues to happen time and time again…

And if you are looking to hit that seven-figure mark, this one common mistake could be standing in your way.

Promoters have plagued this industry for years, but it’s not necessarily a bad thing…

Their evil ways actually are part of the reason why we are able to find so many trading opportunities every day…

As long as you are seeing the big picture.

Many traders have the mentality that you need to buy and hold everything…

Which is the worst thing any trader can do.

And anyone who holds and hope is on the fast path to failure, and today I am about to show you why…

Ride The Wave

I continue to say this over and over again, I hate promoters and their disgusting evil ways!

The only good thing that comes out of a promoter’s work is that they have helped make these patterns SO PREDICTABLE. 

But let me be very clear about something…

I don’t own ANY stock, promoters do.

This is why I tell everyone never to buy and hold, or to hold overnight, or not to stay in too long…

I hope you get my point.

I like to call out these promoters because they come up with insane price targets based on absolutely nothing and they want the stock to soar to the heavens…

Why?  Because they already own shares!

I am looking to buy stocks based on price action and what I see…

Remember, every penny stock is a pump and they all end the same…

How will it end?

With a long kiss goodnight.

But none of these promoters will show you their trades, I do…

You can see all of them right here!

We are never going to be able to stop promoters from what they do, so what I do is call them out every chance I get…

But understanding this can help you realize that every stock is a pump.

Now, if these promoters weren’t pumping up these stocks, a lot of these penny stocks play wouldn’t exist…

So I use these pumps to my advantage, but what you need to be aware of is that every single play will end the same…

But there are plays you need to make sure you master on the ride-up! 

7-Step Framework

Is this printed and next to your computer for every day you trade?

ENZC chart: YTD October 6, 2021, 7-step pennystocking framework — courtesy of StocksToTrade.com

There are still a lot of traders who don’t fully understand this pattern and its significance.

I know there is someone out there saying, “Tim, none of my plays look exactly like this.”

Yes, not every single one is going to look like this, but the end results are ALL the same.

Don’t believe me, here are a few examples…

Vision Energy Corporation (OTC: VENG)

VENG chart 1-day candles Source: StocksToTrade

Meta Materials Inc. (OTC: MMTLP)

MMTLP chart 1-day candles Source: StocksToTrade

All these promoters want you to think that they found a diamond in the rough and that this will make you a millionaire…

That’s not the case, and I can’t even remember the last time a penny stock became the next Apple Inc. (NASDAQ: AAPL)

More Breaking News

Instead, I trade along these promoters as I know what they are up to and recognize what step we are currently at in this framework.

And I treat every trade as a trade, not as an investment opportunity like they want you to think.

Maybe some of you recognized a few of my panic dip buys from a few days ago…

Or even my break-out trades.

Regardless of my trade, they just last a few minutes…

Heck, I rarely hold trades over the weekend.  

And if I do hold onto a stock over the weekend, it’s most likely tied to a news catalyst from StocksToTrade Breaking News.  

Riding along these promoters and knowing how they work can give you an incredible edge…

That’s why it’s important to stay safe and never hold and hope.

And if you are holding and hoping overnight, here is something you may have woken up to…

The Long Kiss Goodnight

If you are not prepared every single day that you trade, you may expect something that you hope didn’t happen.

You see, every day I review these types of plays in full detail…

Earlier this week, I traded both of these stocks…

Verb Technology Company, Inc. (NASDAQ: VERB)

VERB chart 1-minute candles Source: StocksToTrade

Grom Social Enterprises, Inc. (NASDAQ: GROM)

GROM chart 15-minute candles Source: StocksToTrade

And if you were holding overnight, you can see the significant gap down from the previous spike from the day before.

Maybe you bought at the end of the day due to FOMO and waited until the open, thinking it couldn’t possibly go down…

But that’s how these promoters work.

They sell the majority of their shares in the morning, creating these predictable panics.

But let me be very clear about one thing…

If you believe in these promoters or follow random Twitter posts…

These scummy, scamming companies will annihilate you.

We see the same thing happen over and over again…

But yet, traders are still falling victim to these stocks crashing and burning.

If you never thought this was would happen, you might want to think again.

Just go take a look at previous runners, such as…

  • Global Tech Industries Group, Inc. (OTC: GTII)
  • Cloudweb, Inc. (OTC: CLOW)
  • AMTD Digital Inc. (NYSE: HKD)

The list can go on and on…

So make sure you are doing the research yourself and understand why it’s so important to realize the dangers of holding too long onto these penny stocks! 

Final Thoughts 

I don’t mean to sound like a broken record, but when I continue to see traders get annihilated by these no-good promoters…

It just makes me fume.

This is why I continue to do lessons on this material because not every trader fully grasps what is going on in this market.

Everyone here can find ways to profit from these penny stocks, you just need to know how to ride the wave…

And not hope and pray.

So continue to study everything you can and continue to be PREPARED.

Until next time…

-Tim



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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.
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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 (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”