How to Trade Penny Stocks – The Timothy Sykes Method

Tim is a self-described ‘Transparent Investment Management’ trading expert who believes that anyone can truly learn the art of trading penny stocks. These are bold assertions, and it’s …

Stock Trading

Tim is a self-described ‘Transparent Investment Management’ trading expert who believes that anyone can truly learn the art of trading penny stocks. These are bold assertions, and it’s imperative to evaluate the veracity of such comments by conducting in-depth analysis of his trading method. To better understand Tim Sykes, it’s important to know what his trading methodology is all about, what motivates him to place trades, and how this can be of use to everyday traders around the world. The Tim Sykes Millionaire Challenge, available through the Tim Sykes Teaching Penny Stocks system is all-encompassing. However, it should be known from the get go that his trading methods, systems, and procedures are steeped in education and practical application of that knowledge.

There are myriad teaching options available to better understand the Tim Challenge system. These include video introductory courses, understanding industry parlance, a multitude of categories, open trades, closed trades, video lessons, webinars, track record, alerts, Pennystocking Silver, and a veritable mountain of information. Fortunately, there is no avalanche and you can work your way through the trading system from the foothills of the mountain ahead of you up to the summit. The trading gurus who work with Tim understand the financial markets and they have fine-tuned the art of identifying profitable opportunities with impressive win/loss ratios on trades. Nobody wins 10/10 – that’s just not possible. While you’re going through the course, you can learn with Tim, or his graduate students. It should be pointed out that this is not a get-rich-quick program. Read this review to learn more.

In this article, I’m going to slow-walk you through what to expect. The actual learning may take months to master, and that’s the strength of this trading system.

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Make Small Profits Over Time Trading Pennystocks

With penny stocks, traders invariably make incremental profits over time, given that the price of the stocks is so low. Tim defines penny stocks as any equity available over-the-counter, at less than $5 per share. These are also known as pink sheets. Penny stocks are not mainstream trading options, but they are a viable albeit volatile financial instrument to trade. As Tim points out throughout his course, it is the volatility of penny stocks trading that makes them particularly lucrative during periods of wild price swings. Tim promotes the use of several brokers including Interactive Brokers and E*TRADE, but there are many other brokers that can be used to trade penny stocks. Contrary to general opinion, there are several ways to trade these stocks, notably short-selling (betting against the stock), and going long (hoping for price appreciation). Most novice traders tend to believe that the only way to make money off any stock is if the price appreciates over time – Tim dispels this myth and indicates precisely how to short a stock.

Is it easy to learn the system?

Timothy Skyes

Easy is a relative word, and depends upon each person’s comprehension of the course material. It’s not easy per se; it is comprehensive, didactic, and a process. You will have to familiarize yourself with material that you have likely never seen before, and that is time-consuming. A proper education is a prerequisite to success in penny stocks trading. That is provided with Tim’s inventory of materials. I found it particularly useful with respect to the videos (DVDs) on site and on YouTube. The following options make for compelling viewing and will provide you with powerful insights into the world of penny stocks trading: Pennystocking (5h:43 minutes runtime), Pennystocking Part Deux (4h:49 minutes runtime), and New Rules of Pennystocking (19h:18 minutes). As you will see, this is not a course for somebody looking for a silver bullet to trade pink sheets. It is intensive, but the material is structured in such a way that it is compelling, educational, and action-oriented. It is strongly advised to go through as much material as possible before attempting to trade a specific method or system.

For example, anyone looking to get involved in ShortStocking must be familiar with the content involved in this form of trading. To this end, Tim Sykes provides a ShortStocking video with a total run time of 5h:03 minutes. These lengthy DVDs are filled with background, practical examples of how to place trades, and explanations of how to generate profits from shorting penny stocks. The videos are broken down into multiple disks so that it’s easier to understand. Tim Sykes makes it clear that he’s not an investment advisor, he’s simply providing information to new traders. Tim always advises that traders cut their losses as quickly as possible. Tim says that he acts like a ‘Sniper’ – ‘Aim Small, Miss Small’. He deals with small slices of time, and even made money selling short stocks during a bull market. He figured out that short selling pennystocks and all stocks is a viable trading method, and potentially lucrative.  Tim explains that there is a general aversion to short-selling of equities. He explains that you can profit from a negative position on stocks, ETFs, and so forth. 

Some useful tips from Tim for Short Selling stocks:

  • Fees are inexpensive for shorting
  • Be wary of leverage – avoid it at all costs
  • Open a margin account with at least $2,000
  • Buying to cover is getting rid of your short position

In summary, you will certainly benefit immeasurably from the course. It might take some time to understand everything and some concepts won’t be easy to follow (at least intuitively), but by the end of it all, you will be a much more informed trader.

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