Trading Penny Stocks using Tim Sykes' Proven Methods

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.

The Highest Earning... Or Losing... Stock Trades Ever!

Most day traders have amassed their own collection of war stories about their most profitable trades ever, and at the same time have their sob stories over the “sure thing” that could have gone sour. Here, we have collected 10 of the most profitable stock trades ever. They are, of course also 10 of the least profitable stock trades in history.... had you been on the other side of the trade! We aren’t including anything like blue chip or high dividend-paying sites in this list... just the 10 biggest winners (or losers) in recent history!

Buy Medifast Inc, 1999.
As a small medical equipment company in the 90's, Medifast was barely on the radar at 20 cents per share. A series of lucrative contracts aided by lucrative patents had it trading at $30.58, a staggering profit of 16,000% to a long term investor! While a short stellar would have stopped out early, the pangs of regret would have been as painful as any financial loss.

Buying Ebay, 1994
Some thought the idea of auctioning off people's junk was ludicrous. Others just didn't see where the profits would come from. One of the few .COM sensations of the 90's to mature into a a stable investment, ebay was certainly helped along by the fact that its payment processor, paypal, essentially became the international standard for online transactions. Ebay's rise was typical of .coms at the time, opening at $2 per share in September of 2008, reaching an early peak of $10 per share by December. During the ensuing .com recession, ebay bucked the odds by hitting $56 per share in November 2004, a profit of 2800% for 1st day investors! Short sellers, of course ate their hearts.

Buy Google, 2006
Offered at a near blue-chip price of $80 per share during the 2006 IPO, Google has, since then, surged to over $600 per share, making the undisputed king of the Nasdaq.

Shorting the Dow on September 3rd, 1929.
Most trading historians would regard the Stock market crash of 1929 as one of the biggest catastrophes in history. However, a trader able to read the signs (Overheating economy, high volumes of risky trades on high margin, and a complete lack of oversight) opening a short-sale futures position on the index would have seen the index drop from 381 to 198 by November 13. An investment of $100,000 with 30% margin posting would have witnessed a 178% profit. Betting the market would have gone higher, of course, would have made you a candidate for that autumn’s fad of window-diving.

Investing

As an existing or potential investor in the stock market, you may certainly be wondering as to which stocks are the most commonly invested. One potential source for this information is the financial newspapers which offer world wide coverage or the big online sites devoted to finance. For our purposes, we'll look to you the consumer for your interest in this subject area. Consider the scope you're concerned with. Globally listed stocks in foreign exchange markets may be part of the equation, or your focus could be solely on the markets found within the united states. Consider whether you're only considering shares in companies, or rather are also interested in commodities or other financial instruments. Once you've narrowed your focus, let's utilize publicly available trading information to determine the companies you're interested in.

The most commonly discussed companies which are publicly traded are often the most commonly invested in stocks. Think to companies which have a widely known brand identity, rather than conglomerates which own many brands, but lack public branding themselves. Some companies utilize some of the most popular tricks in the industry to keep their shareholders satisfied, and you want to be part of the crowd that has the most informed members. Some companies have many distinctively branded components, so it is in your best interest to discover what those components are and how you can utilize this knowledge to profit, sometimes substantially. You can use information that many people with a financial background learn in school or even in the workplace. As both a consumer and a person interested in an ownership stake in some of the largest and most diversified companies out there, you owe it to yourself to take the next step and find your financial future.

Charting a stable, well-thought out path to your continued financial success takes hard work and careful preparation. It is in your best interest to seek out the best sources you can find and utilize them to their fullest potential. Don't take the negative sayings of doomsayers and Cassandras to heart, utilize your own judgement, based on years of knowledge you've earned out in the workforce. Some of the most commonly invested companies have fantastic websites full of investor relations materials which you can utilize to find continued financial success in your lifetime. You have the power as a person capable of financial literacy. Go forth and invest intelligently.

A Review of Tim Sykes

The name Tim Sykes has been a hot trending topic in its respective financial market, primarily the penny stock market. Enveloped by both positive and negative reviews, the program certainly earns the right to be included in today's conversations when it comes to investments. If you are planning to invest on this product and is quite unaware of its features and capabilities, here is a detailed overview of Tim Sykes' widely acclaimed program.

So who is Tim Sykes? Basically, Tim Sykes is the creator of the Penny Stock Millionaire program, which he deemed has allowed him to earn his first millions from trading penny stock ventures. Tim Sykes is a trading professional carrying 12 years of experience under his belt. Not only did Tim Sykes trade penny stocks but also worked with options and other stock products as well. Tim also owns and facilitates his very own Penny Stock Newsletter that has been in existence for around 4 years now.

Tim Sykes has been able to carry out researches for every firm detected from his radar, the firm's SEC filings and company updates. He has also been keeping track of the stock trading quantities and rates, which are all enabled by his trusty solution that Sykes has been able to perfect throughout the last 12 years of his work and expertise. Still, Sykes also realizes that researches and everything that is stringed with it isn't intended for each and every investor. A huge population of investors just wants the selections spoon fed to them from a reliable and proven resource so that they are able to save huge amounts of time and effort.

Tim Sykes' Penny Stock Millionaire will enable clients to learn to profit up to 100% revenues in the least amount of time possible, usually around a week or so. Sykes' pupils have also been reported to win nearly 70% of their trades, regardless of their lack of experience in the field. The program's techniques and strategies are extremely lucrative in all market circumstances. Through it, you can make full time trading revenues with only a part-time trading investment.

With Tim Sykes' Penny Stock Millionaire program, clients and newbie investors do not need to expose huge monies in order to accumulate relatively large gains. Also, the program yields the benefit of being able to take a shortcut from the time-consuming and hassling learning curve with the programs easy to learn and follow course.

What Most People Don't Know About Penny Stocks

What most people do not know about penny stock is the fact that they have generated a soiled reputation. While some of them are great investments others are not. It can be difficult to tell the good stocks from the bad stocks. Investors should weigh the risk and decide if this is the right investment for their needs

Penny Stocks are generally classified as any stock with a value under $5 per share. This is appealing to many investors looking to make it big. Some Penny Stock can be purchased for less than $1. Even though, most people have struck it big with these low budget stocks some people have lost quite a bit of money.

As with any investments there are always risks involved. The lack of information associated with Penny Stocks makes them questionable. Unlike other stocks like gold, silver or apple where information is widely publicized, this is not the case with Penny Stock. In fact, most of the information available about this stock is not from reliable sources.

Many of the stocks are fairly new and have no trading history. Investors are left in the dark as to whether or not they are great investments or if they are approaching a losing streak. Since they have no minimum standards this may be good for investor, since this acts like a safety net and benchmark for both investors and companies.

Investors should also be aware of the possibility of not being able to sell their Penny Stocks because of low liquidity. Finding a buyer could prove to be difficult if not impossible. This leaves the door open for traders to purchase the stocks at a lower price if the owner is forced to lower the price. This is where price manipulation and mistrust comes in among investors, buyers and traders.

What many investors will do is hype up the purchase of Penny Stocks and sells them at an attractive price. This process is known as pump and dump; it seems to work well for new or unsuspecting individuals who are new to trading stocks and looking for a bargain. Penny Stocks attracts the attention of offshore brokers who buys them and resells them back to their original purchaser at an highly inflated price.

Even though, Penny Stocks are low value, low liquidity and risky, there are some stocks that are trustworthy and can really pay off well. Investors need to seek more information about the stock they are planning to invest in.

The Basics of Penny Stocks

The stock market can be an intriguing place for many reasons. Some people look to the stock market as a way to save for retirement while others look at the stock market as a way to make millions of dollars and be set for life. While the attraction of large sums of money is there, not everyone has the means to jump right into the market. Penny stocks are a good way for people of all ages and financial backgrounds to join the stock market and hopefully make money doing so.

Penny stocks are commonly referred to as cent stocks. These are the stocks that fall into the category of being traded at one dollar or less. With such a low price, penny stocks are highly sought after. People tend to buy these stocks in large quantities and hope that the price will rise. The price being so low also leaves the door wide open for manipulation. People and corporations can purchase large amounts of these cent stocks and lobby for these stocks and help to raise the price. The internet has become a tool that is used to help to increase the prices on these cent stocks and people and corporations have seen substantial returns due to this.

While penny stocks do have a large appeal due to their low cost, these are also high risk stocks. Cent stocks come with a high risk for a few reasons. All stocks are traded at their designated cost for a reason. Low priced stocks are not worth much and it is possible that the price will not rise. This is a risk the trader of the stock will have to accept. Another problem traders find is that it can be very difficult to sell penny stocks and they are at risk of losing a lot of money.

Cent stocks are not for everyone but for the people who do want to take the gamble, there is the potential to make a large amount of money. The stock market is not for everyone but for those who accept the risk, they can see great rewards in a short period of time.

What Are Stocks?

People often talk about investing in the stock market, discussing the Dow Jones, or bragging about owning shares of Google or Microsoft or Exxon. But what are stocks? While it is not necessary to have a complete understanding of every detail of stocks in order to invest in them, it is certainly helpful to have at least a basic understanding of them.

Put simply, a stock is a tiny piece of a company. When you own a share of stock in a company you own a small part of that company. For example, if you were to purchase 200 shares of Google, each of those shares represent one tiny piece of Google, and you would own 200 of those pieces. You are a part owner of Google.

The more shares you own the greater your ownership percentage of that company. At last check there are a little over 325 million shares of Google stock available for investing, so 200 shares is only a very tiny percentage (about 0.00006%). You would literally own that tiny percentage of all of Google's buildings, equipment, furniture, machinery - whatever they own.

Owning stock in a company benefits you in several ways. First, when the company earns profits you are entitled to some of those profits. These are paid out as dividends, either quarterly or annually.

Second, the stock price of companies may go up or down, but for productive companies they usually go up over time. On average the stock market has risen about 8% annually for the last 80 years or so.

Third, as an owner of the company you have the right/opportunity to participate in that' company's annual meeting and even vote in company elections!

Not every company is publicly traded (that is, has shares of stocks you can buy), but there are thousands that do, usually the biggest and most successful companies in the country.

To purchase shares of stock you need to have an account with a brokerage company. Such a company has direct access to the markets and can buy and sell shares of stock on your behalf. Another common way people invest in stocks is through mutual funds, which are a vehicle for thousands of people to pool their money together in order to invest in a large number of companies.

Either way, stocks are an excellent investment for anyone looking to expand their asset base and grow their net worth.