If you're thinking about investing in penny stocks, you've probably heard about Timothy Sykes. Sykes gained notoriety as a self-made millionaire by skipping his college classes to trade penny stocks. In doing so, he turned his initial investment of $12,415 into two million dollars in less than four years. He then started his own hedge fund, which became the top ranked short bias fund on Barclay for three years in a row.
Sykes has since been featured in countless media outlets, including Wall Street Warriors, CNN, CNBC, Fox News, ABC, and The New York Times. His website (TimothySykes.com) features daily stock picks, an entertaining blog, and three different newsletters that investors can subscribe to. If you simply want to learn the methodology behind his trading, Sykes has released a DVD series. You will find the Shortstocking, TIMfundamentals, and TIMfundamentals Part Deux DVDs on Sykes’ sister website, which discusses a wider variety of financial investments (Investimonials.com).
His penny stock trading picks have yielded some remarkable returns despite the tough market conditions of the past few years.
- 2008: 197%
- 2009: 141%
- 2010: 57%
- 2011: 54%
His top pick in 2011 yielded a return of 828 percent in just 22 days! With these numbers, it’s no surprise that more and more investors are interested in his methods.
What is surprising is that many of Sykes’ students have been able to duplicate his success by using his methods. In a recent challenge of 60,000 registered investors on Convestor.com, Sykes became the number one ranked trader with gains exceeding 1,500 percent. Nearly 20 percent of the top traders in the challenge were either subscribers to Sykes’ newsletters or using his penny stock methods.
Trading penny stocks is appealing to many new investors because you can get started with as little as $200. However, this type of trading is considered high risk for several reasons. It can be difficult to find reliable information on the companies being traded, so research consumes a considerable investment of time. What’s more, penny stocks do not have to meet any minimum requirements to be traded, unlike those listed on the Nasdaq or the New York Stock Exchange.
The penny stock market is also highly volatile. Although you are investing small amounts of money, the opportunity for huge risks and losses are exaggerated and things move quickly. For example, if you purchase 1,000 shares of stock at 50 cents, it could zoom to 75 cents within a few hours time yielding a $250 profit. However, it could just as easily fall to 25 cents per share, and you’ve quickly lost half of your investment.
With Timothy Sykes' excellent track record, investors can feel more confident that they will be making the right trades by learning his methods and following along with his trading advice before venturing out on their own.
Friday, April 6, 2012
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