Chapter One: What Pennystocking Is and How to Do It

Last updated on April 15, 2022

Ever heard the term pennystocking and wonder what it means? 

What if I told you that right in front of you — in this post — are the strategies I used to transform my life. These are the tips that made the millionaire lifestyle I always dreamed of a reality for me.*

I’ve been trading penny stocks for more than 20 years. In that time, I’ve made over $5 million in profits** and helped several of my top students become self-made millionaires.* I’ve been teaching my process to dedicated students for over 10 years now.

(*My results, along with the results of my top students, are far from typical. Most traders lose money. My top students and I have the benefit of years of hard work and dedication under our belts. Trading is inherently risky. Never risk more than you can afford to lose.)

I know what I’m talking about when it comes to pennystocking.

But guess what a lot of people want me to do with all that information? They want me to lock it down and only give it out to people who can afford to pay me thousands of dollars.

I think that’s BS.

I’ve spent over a decade of my trading life teaching my strategies to others. I believe that everybody deserves to have access to the knowledge that could potentially help them navigate the penny stock market. 

I think every committed trading student deserves a shot at becoming a truly self-sufficient trader.

pennystocking 101
© 2020 Millionaire Media, LLC

Fake gurus hate me for this. They know that if everybody can learn pennystocking for free, there won’t be anybody left for them to rip off with their overpriced courses and expensive seminars.

Bottom line? They’re afraid.

I’m Changing the Pennystocking Game

I’m blowing the lid off the whole industry. This is America. Everybody has the right to learn pennystocking. They have the right to build life-changing wealth.

What I’ve put together here is — by far — the most comprehensive free pennystocking resource ever released online. By the end of it, you’ll be ready to dive in and start pennystocking.

(Learn how I prepare for the market every week. Get my no-cost weekly watchlist here.)

Will it be easy? Of course not. I won’t lie to you and tell you that pennystocking is as simple as buying and selling a few shares here and there.

supernova placement


It’s hard work. But it’s work I believe anybody can do if they have the right training, have the right mindset, and can stick to the right rules.

If you’re willing to put in the effort to read this guide and start putting my recommendations into practice, you’re already doing better than most amateur traders out there.

I say this a lot: build your knowledge account before you even think about your monetary account. To trade smart, you need to know so much. Don’t just take my word for it. Most of my top students struggled for months or years until the process clicked for them. 

Want overnight success? Sorry, you’re in the wrong place. Ready to really dedicate to something that has the potential to change your life? Welcome to pennystocking.

I’m glad you’re here, and I look forward to taking this journey with you. If you’re ready to take the first step, keep reading.

Who Am I?

timothy sykes pennystocking
© 2020 Millionaire Media, LLC

Let me introduce myself. I’m Timothy Sykes, and I’ll show you the road I’ve taken to turn $12,415 into over $5 million in trading profits.*

When I was in high school, my parents gave me my $12,415 bar mitzvah gift money to invest. They thought I’d lose it all … Instead, I spent hours in my high school computer lab, learning the market.

I started with mutual funds and other traditional types of investments … But I quickly realized the best I’d ever earn was 8%–20% a year in returns. I knew there had to be something better out there. That led me to the world of pennystocking. 

Along the way, I made some good calls and made some mistakes. But the most important thing I learned was how to read charts and track companies. That’s how I found the pennystocking patterns I still use today.

Check out how it’s working for me in this crazy volatile pandemic market:

In college, I found myself skipping classes to trade penny stocks and launch my hedge fund, which was the #1 ranked short bias fund by Barclay for three years… 

Until I realized my trading strategy wasn’t scalable. I tried to take advantage of longer-term trading strategies and my fund lost 35% in the process.

Despite feeling embarrassed about my situation, I’d still turned my initial $12K+ dollars into $1.65 million dollars by my college graduation. I agreed to make an appearance on the docu-series “Wall Street Warriors.” I was in five of the six episodes of the first season… 

But I was growing increasingly frustrated that the restricted hedge fund industry prevented me from answering any of the questions I was receiving about my trading strategies.

Why I Share My Pennystocking Strategies

In 2006, I said screw it. That’s when I wrote my book detailing my experiences, “An American Hedge Fund.” (Read it if you haven’t already — it’s free.

I decided to take things even further by launching a publishing company and a blog that would detail my trading activities. That gave me a way to share my brutally honest thoughts on trading and instructional DVDs.

Since launching my blog, I’ve published THOUSANDS of posts. They recount how I trade with a small account to show my students the pennystocking process. 

I’ve been ranked the #1 trader out of 60,000+ investors on Covestor from 2008–2011. And I’ve been featured on CNN Money, Fox & Friends, and pretty much every major business and financial news outlet out there.

And I love to travel. I’ve been all over the world. You can follow my travels on Instagram and YouTube, where you can get an insider look into the millionaire lifestyle that my trading success affords me.

With my charity Karmagawa, I’ve helped open schools in developing nations. Now that I’m rich, I know how important it is to give thanks and give back.

But the other big love of my life is teaching. My students are doing amazing things… 

Several have reached over six figures in trading profits, and a few have even become millionaires. These students learn from my video lessons, DVDs, Trading Challenge, and all the free information I provide on my blog.

I don’t just talk the talk when it comes to pennystocking. I walk the walk — and I teach my students my trading rules, processes, and strategies along the way.

What Is Pennystocking?

This is what you’re all here for, right? So what is pennystocking? 

Pennystocking is trading penny stocks — stocks trading under $5 dollars a share — for a potential profit. Forget value investing where you buy positions in strong companies and hold them long term…

Pennystocking is all about riding the momentum of penny stock price moments

Read this paragraph over and over again. This is very important. This isn’t investing — this is a game. You have to treat it like a game. You need rules, discipline, commitment, and so much more…

Ready to learn? Start with “The Complete Penny Stock Course” by my student Jamil. It covers so many questions I get from newbies and is an incredible resource to help you navigate the penny stock niche.

How Do You Learn the Game of Pennystocking? 

In my experience, the real reason most traders lose money is because they don’t prepare. They don’t think they need an education to make it in the markets.

They don’t consider all the variables — they don’t even know what they are. You can’t afford to make that mistake. Never forget this: the market doesn’t care about you, what you think, or what you want.

You have to understand how the overall market and Wall Street work if you want any chance of survival. And if you want to stay in the game, you have to learn to adapt to the market as it is right now.

So does this really work? 

For the past 20 years, it has for me. I’m self-taught, so I really don’t care if others agree with my strategies. The rules I trade by helped me turn just over $12K into more than $5 million in trading profits. 

In 2020, I’ve made more in six months of trading than I did in all of 2019. (See my trades here.) I’ve made more than most people make in a year in just a few weeks.* And I’m doing it all trading the patterns I’ve used for the past 20 years. 

And I don’t tell you that to brag. It’s important for you to see what’s possible.

And as you’ll soon discover, I’m not even that good of a trader. I really want you to be better than me. I think you can.

watchlist banner

Why Am I Giving Away My Pennystocking Strategies? 

Throughout my time as a trading teacher, I’ve received countless comments, emails, and messages … They all show me that people know so little about trading, hedge funds, and specifically penny stocks. 

My goal is to change that. I’m on a quest to create more millionaire students than any other trading teacher out there. I want you to succeed!

A lot of people think penny stocks are gambling. And it can be… 

Bottom line: all trading is risky. You won’t make millions of dollars overnight on a few trades. But you can start with a small account and scale up over time (like my student Tim Grittani, who’s up over $11 million in trading profits.)** 

Yes, you can potentially profit trading penny stocks, but you have to know the limitations. I had to learn the hard way. There were no pennystocking mentors when I started my trading career. 

I hope that with this guide and the other educational resources I provide that I can save you from a lot of the pitfalls I’ve endured.

So, are penny stocks dangerous?

Yes, of course, they can be dangerous. But if you take the time to learn about penny stocks — how and why they move, how to trade them — you can learn to manage your risk

There isn’t much accurate information out there about pennystocking. I’m hoping to change that with this guide.

Why I Love Pennystocking

What’s so great about penny stocks? I believe they offer the greatest risk/reward setups

With a process, research, and discipline, I’ve turned $5,000 into $10,000 or even $20,000 within a few weeks or months.** For me, no other investment option offers such a potential great upside in so little time — especially if you’re starting with a small account.

In a volatile market, the gains are even bigger. It’s not always like that. That’s why you have to learn the process and the market so you can adapt

And I never trade using leverage. I don’t like leverage, and I don’t recommend newbie traders use it. It’s too risky. And you don’t even need it for pennystocking. 

Penny stocks are the least complex of any investment. I think virtually anybody can learn to play this game. These stocks and companies are too small for the big traders and Wall Street. That means more opportunities for traders like you and me.

We’ll get into the logistics of pennystocking soon … First, there’s one important thing I think will make or break you as a trader. It isn’t your account size or your past experience…

It’s your mindset.