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Why Poor People Should Never Invest In Mutual Funds aka Poor People Compounding Doesn’t Exist

Posted by Timothy Sykes on Sun 21st of Dec, 2008 05:36:53 PM
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I like the comments ont his blog, sometimes they bring up good points….here are 2 verrrrry important/common topics I thought everyone should be aware of:

Tim,
Most mutual funds manage billions of dollars. Why don’t you start with a billion dollar account and up your account by 250%? Sorry, I forgot you closed your hedge fund after losing a large portion of its money.
You yourself said that mutual funds and institutions do not trade Penny Stocks most of the time, because they are not interested in a 40K gain a year that small people like you and your subscribers do.
I understand this is a niche you are good in, but indeed, you are comparing apples to oranges when you say mutual funds don’t make money.
-Matterhorn

My response:

matterhorn, as i’ve detailed exhuasitvely, my strategy aint scalable, its for poor people, the good news is theres many many more poor people in the world who should be doing it instead of trying to play with the big boys where they have no edge….finance people are so dumb, they think u need to manage millions/billions to be “respected”…the industry falling part shows show much respect will get u, its meaningless…i’ll teach 1 million people to make $1,000/week or so, charge them $1,000/year or so and manage nothing and yet i’ll have helped and earned more than i ever could as a mutual fund manager while taking less risk and enjoying it much more becuase poor people are much more real/fun/interesting than the rich
-Tim

I think it’s downright sad that people with $1,000, $2,000, $5,000, $10,000 have been fed this BS from “responsible financial advisors” and have invested in “safe mutual funds” that are now down 30-50% this year….even if they were up 10, 20, 30%, the $ gains on such a small account make them A WASTE OF TIME FOR PEOPLE WITH SMALL ACCOUNTS.

Think about it, let’s say you invest $5,000 in a mutual fund that goes up 20% on the year, so after one year, you’re up to $6,000…another year goes by and the fund earns 10%, so now you’re at $6,600…another year and another 10%–which would be damn good mutual fund performance (definitely not this year)…$7,260….compare all this to a PennyStocking success story Adam N. who started with $7k a few months ago and built that to $14k in 4 months!

POOR PEOPLE MUST BE AGGRESSIVE BECAUSE EVEN IF THEY LOSE IT ALL–which they shouldn’t if they follow Pennystocking considering I say cut losses immediately and never use leverage–THEY CAN MAKE BACK THEIR ENTIRE LOSS BY MOWING A FEW LAWNS! (rich people can’t)

Poor people compounding doesn’t exist, when you’re poor you need SPECULATIVE STRATEGIES LIKE MINE.

My case is strengthened by these comments:

It looks like if you don’t admire Tim you will be called a loser. I agree with you on some points. Tim followers (or Tim) sometimes talk non-sense. Tim propaganda is based on tiny daily gains (like $500). Tim followers can’t understand the difference between a micro account (Tim’s) and the mutual fund multi billion-dollar industry. It is pretty obvious that mutual funds can almost never get a 250% gain. Gains or losses for mutual funds have nothing to do with Tim penny stocking. Are we comparing apples and oranges!?
Tim pointed to the mutual funds tens of times to make the argument that the entire world is losing and he or TimAlert guys are winning. Pure propaganda to sell more DVDs or get more get-rich dreamers on the alert list.
-Someone

My response:

i’m comparing apples and oranges because people with small accounts dont understand the difference, they’re out there trying to compete with the big boys–since thats all they ever hear about from CNBC–when they should recognize their lowly status and use it to their advantage

When do I ever say my strategy should be used to get rich? Again and again, I write it should eb thought of just as a way to make an extra few hundred/thousand…unfortunately the vast majority of my haters work in the finance industry, post on time-wasters like EliteTrader.com and are illiterate.

I agree 100% my strategy and mutual funds are 2 verrrrry different things and every single poor person in the world should understand that and buy my instructional dvds, sign up to TIMalerts and never even consider mutual funds/Sharebuilder (total crap!)….as of right now they haven’t…gimme some time…

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  • Nojobmaui
    It's just amazing that people cannot get the concept of ......of u make 1c profit a year u have done better than any mf this year
  • Money on Money
    Obviously it's way harder to make 10% on a billion than doubling a measly 1,000 dollars. I've made 400% on accounts, and three months later i'm wondering where next month's rent is. Do the math: You have 25k to invest, you need about 35k a year NET to live an OK life. Very hard. And this is not a business to make bank consistently while doing it part time. Either you have 100k or you don't. If not, invest, don't trade. People supplement their income because they know how hard trading is. When I see TIM making 50k a year gross, then I will take him seriously. How many years ago did you make 50k a year from trading alone, and that still is nothing NET to live in NYC. Let's say 100k, netting out 60K for NYC. How many years have you done that?
  • the money i make from trading are quite inconsequential....as long as i pick solid risk-reward scenarios, i'm undoubtedly gain over time, which no other stock market guru has even proven year in year out
  • inspiron
    Hey Tim (and other traders using his strategy) , how do taxes end up hitting you on your stock trades? I would imagine the tax on short term gains must chew up a good bit of your profits.
  • lets say tim is in fact making 50k a month from this (i know the actual ratio and i know the real percentage, but ill give him the doubt here) if he rakes in 50kx12 a year (which for simple math kiddies would have to be 600k a year) he would have to return on the former peak of his hedge fund (2.1 million correct me if i am wrong here) ~ 30 percent on a yearly basis, which any idiot can tell you is hard in a recession. I hate that im defending him, but business wise, this has more utility for tim and his time.
  • Couldn't agree with you any more, Tim. The retail "finance" business is complete and utter bullshit, predicated solely on selling people shit they not only do not need, but aren't suited for anyway.

    It makes my blood boil (if we ever meet up I'll explain in more detail) like you would not (ok maybe) believe that people think their Financial Advisor knows anything besides how to open various types of accounts. Granted, I do know some FA's who are pretty well informed and do really try to go good by their clients, but in my experience thats the exception, and not the rule.

    99% of sheeple have no business being trying to play the markets, although frankly I don't mind, because of idiots I'm up what, 20% this year passively investing, heh.
  • AlphaTrader
    Tim, you made your name shorting dotcom bubble. When things pick up again (2002-2003) you closed shop because your strategy cannot adapt to a different market environment.

    Now you again make your name during the great 2008 bust. When things settled and pick up again around 2010-2011, I'm betting my pants that you will close shop again and cry wolf that the industry is not very kind to the small guys like you.

    Cheers and better luck next time!
    From someone that manages the real big dough, not measly <100K... that's monopoly money to me.
  • alphatrader, u forget i made hundreds of thousands of dollars--trading with huuuge mistakes-- in 2003, 2004, and 2005, smakc in a bull market...u guys gotta learn to do better research
  • Timmy happy Hanukkah tomorrow
  • JDawg
    Tim-
    I am darn near sold on you my friend. Honestly I had never heard of you before I saw a link on Brian Shannon's website for your upcoming expo with him (I am a avid follower of him for about 2 years now). My question is a lame one (and sorry to jack your thead here) but I have a good knowledge base of trading, though am still a NEWBIE. What DVD should I start with. I dont know what the differences are between their content?!? (No I dont want to buy them all right now silly!) Which one talks the most re: risk vs reward setups to limit downside/slippage, and the actual set up's to look for?

    Thanks! Take care
  • cool jdawg, pennystocking is the intro for newbies, pennystocking part deux focuses entirely on setups and recent patterns
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Start Here

Who Is Timothy Sykes And Why Should I Care?

See Tim's full bio HERE. Tim turned a few thousand dollars into a few million by taking small gains time after time on hundreds of volatile penny stocks, discovering that his trading strategy, while consistently successful, works best for those with smaller accounts.

Determined to teach others this PennyStocking trading strategy (learn more HERE), he went back to his original $12,415 roots (already $58,000+ even though the stock market has crashed) to show everyone how to turn thousands into millions, even while having a life (somewhat) and making plenty of mistakes. Currently he is the #1 ranked trader out of 25,000+ on Covestor)

How Can I Consistently Make Money In The Stock Market?

Hard work, Determination and Know How.

Hard work to learn how the greatly misunderstood niche of penny stocks provides opportunities every now and then on which you should pounce.

Determination to seek those probable profits out and know how in order to actually profit from them.

Long story short, wait for stocks that are extremely volatile - for whatever reason - and then aim to take small profits (between 10 and 50% within a few hours, days or weeks) here and there, either from betting on higher or lower prices (yes, you can make $ betting on lower prices, it's called Shortstocking (learn more HERE).

Why Penny Stocks?

As Tim explains in several ALL-NEW instructional DVDs (see them HERE) and in over 2000+ blog posts, penny stocks are the most hyped and corrupt niche in the entire investment world. These two qualities make them the easiest to profit from (legally) because the vast majority of people who play penny stocks are suckers and all-around ignorant people. If you have any intelligence whatsoever, you have a clear advantage and it's like playing basketball against mental midgets.

Where Do You Find Stocks To Trade?

This is the #1 FAQ (see more HERE) and it is answered in THIS instructional DVD.

Of course, that's just a brief introduction - to receive a full education, there is Tim's book An American Hedge Fund which is the story of his remarkable rise and lessons learned.

To truly increase your odds at profit, Tim has designed an entire set of detailed instructional DVDs, covering all the variables that amount to over 24 hours of instruction (see them all HERE)!

TIM Trades

View All
Date Stock Buy Sell Net
Nov 6 QXM $4.31 $4.80 $1936
Nov 4 COT $8.66 $8.88 $642
Nov 4 QXM $4.61 $4.89 $822
Oct 30 DDRX $25.70 $26.53 $812
Oct 29 CTDC $4.00 $4.42 $781
Oct 26 AWSL $3.24 $4.10 $2516
Oct 23 RODM $5.27 $5.23 $301
Oct 22 AMLM $2.69 $2.97 $820
Oct 22 USEG $6.12 $6.09 $85
Oct 20 CBOU $8.93 $9.06 $243
Oct 16 VRMLQ $16.79 $18.65 $2773
Oct 13 YONG $11.05 $11.66 $1202
Oct 13 NPHC $0.59 $0.71 $583
Oct 12 IMGG $0.60 $0.70 $682
Oct 9 ZAGG $5.50 $6.10 $2380
Oct 7 GVBP $0.03 $0.27 $702
Oct 1 NPHC $0.70 $0.85 $1482

Total: $92,304 (644%)