What Attracts People To Trading Penny Stocks? (Answers From A 760 Person Survey)

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A few months back, I took a reader survey and got some very interesting answers. Over the next few days, I’ll be reporting the findings because I think they’ll help you guys better understand this market niche and will make you understand that my instructional study guides are not optional, they’re required. (My real-time trading alerts TIMalerts premium newsletter will help you learn too, but it’s only optional :)

Because the more you know and the more comfortable you are with historical patterns & examples, the better prepared you’ll be to profit from future opportunities!

Here’s the first question:

1. What attracted you to trading Penny Stocks?

And here’s 760 responses:

tim sykes
Timothy Sykes
Big risk…bigger profits
Promise of quick returns
low cost
low price
low entries
The Money
profit potential
The accessibility for smaller accounts.
extra income potential
profit potential on small $ invested
Tims marketing
Penny Stocks dont go with market in down scenario and they have the capability to make you millionier overnight
friend
The outlook on the market with conventional trading strategies.
Opportunity to make money with a small account!
Your Success Tim!
big percentage moves
High reward potential
value potential
making money in a logical yet exciting way
watching tim sykes over time
Make money
greater potential with a smaller investment
Easy money rolling in like semen in a whore’s mouth
Tim
Knowing Tim from school
Amount needed to get started
From learning how well you did from watching wall street warriors
big movements!
James Altucher at Thestreet.com
The chance to make money with big returns.
lost cost of market entry, less money to risk if lost.
no attraction! just more effortable!
stock blogging
big profits
An alternative trading method
Un-correlated to major indexes
potential big gain
making money quickly
saw sykes on thestreet.com
stocktwits
Profit Opportunities
you
fast buck
was the only sizeable stock I could trade at the time
profits
Chance to make money
Your book
AFTER I BOUGHT AND SOLD SIRI (SIRIUS) AND MADE A KILLING
Tim. Before i knew of Tim, i wasnt really into Penny Stocks.
High percentage movers vs well known companies
The profit potential
New market to trade.
faster returns
I was looking for a more day to day strategy rather then traditional buy and hold. Something that can be done in the short term. Also, the large gains Tim had posted helped.
Timothy Sykes
You and your book and seeing you at Traders Expo NY
huge upside potential
Niche market that can give you advantages if you follow the rules of the game.
new trading strategy.
Wall Street Warriors
Tim on the disciplined investor podcast
return
I’m not, I only found out about you when I took a look at covestor after reading a newspaper article about covestor.
I’ve no experience in trading: it was only hearing about Tim’s strategy
potential to make money in my pjs
money, thrill of the trade
adsf
My first investment was a penny stock and made out well.
Tim’s methods. Otherwise, Penny Stocks suck big time.
Volatility
The huge profits Tim was making.
High gain
i was just getting into trading in general then i stumbled upon this site, which made me interested in pennystocks.
recouping lost investments
Learning how to make profits
take control of my financials
can buy more shares with less risk
Potential for a huge lotto like payday someday
Volatility
huge volitility
Huge Gains
low cost output
Volatility
Tim’s website
Wall street warriors
Easier, higher probability setups
Watching you on the T.V. show on Mojo
Quick returns
The prospects of making good profits regardless of were the market goes
Looking for alternative investing strategies
TIm’s interview on the Disciplined Investor Podcast
Saw Tim with James Altucher on a segment at TheStreet.com and just the intro alone of “Tim turned 10k into 2million in 2 years trading Penny Stocks” or something along those lines caught my attention. I found Tim’s sites, read through them, watched the vids, tracked his moves off his home page for all of April and figured if I had gotten in and out a the same times Tim did I would have been up 47% after comissions? Even if my calculations were off a bit, it was still worth $30 for a month to test it out.
Profit Opportunities
tim
Profit potential
Video of Tim Sykes on Marketwatch.
the success of the strategy
A friend
tim sykes interview
Potential growth
You
I saw Tim on Realmoney.com
big swings
You - I found your site, can’t remember exactly how.
Quick turnarounds - both ways
consist gains and large % profits
more volitility
An American Hedge Fund by Timothy Sykes
potential profit margins
Low investment
Increased gains
a new game in town
The ability for big profit
Quick profits
the possibility to not risk a huge amount of cash and still make a decent profit.
liquidity
TIM
The ease of profit
To make money
the price - I started out with only $3k back in ‘99
volitility
larger returns in short time
Limited funds
the money
Timmmy
The percentage gains shown for the relatively small amount of capital required
The Action
Tim’s history as a successful trader/A plan for trading
Gain
the price
still on the fence
the volatiltity and excitement
just started in trying to trade and do not have a lot of money to start with
money
low cost
coz they are cheap
higher gains
The lower cost per share….and…Timothy Sykes
affordability and volatility/different niche
I’m an extremely technical person who enjoys analysis. Therefore the tech analysis of stock patterns are fun. Since penny stocking requires a small amount of capital, it allows me to test my ability to successfully call patterns over & over with the chance of making small amounts very quickly.
Hearing Timothy Sykes on The Disciplined Investor with Andrew Horowitz
making money with very little of it 2 start with
The ability to earn exciting profits
Low amount of risk capital (5-10k)
nothing
the affordiblity
Money
The ability to make money buy buying more stocks at a lower price
Saw you on MSNBC .wanted to learn more
it make bring me to the top
Being the little guy/thrill of the hunt
the allure of volatility and big gains quickly
Tim’s proven stategy on making money in any type of market.
The low cost to trade
hi returen potential
Quick Profit
make money
The system that Tim uses was a quick and easy to understand system for me to grasp. Also low capital to start out trading with means I get to make my positions sizeable enough to take a small profit and build versus typical buy and holds.
Timothy’s success and full disclosure, his openness.
small investment to start with
Higher probability setups, good to start learning trading equities.
exponential growth
The massive hype, fraud, but also the % moves
Iy looked appealing
Not Completely Correlated with General Markets.
Timotht sykes
Opportunity to make good investments
ignorance
Dumber competition
Profit due to manipulation
The high returns
Potential to short
fast money making opportunities
The volatility…..more money to be made
volatility, getting that edge
Volatility
potential gains
cheap stocks
the volatility to make quick profits
Quick gains
your the best in the east
The $100 offer posted on twitter
Recent economic factors, provides greater returns in a shorter period of time
Timothy Sykes was my main inspiration, because I felt I had a better chance to succeed down in the “gutter” than going against people with indisposable income.
high return, low bankroll
Money what else
rate of return
Timothy Sykes on Wall Street Warriors
wallstreet warriors
big gains
Income, along with attaining information on the market that is generally not discussed through mainstream media
Low cost.
You
Quantity of shares I can buy with lower amount of initial investment.
monnay
cheap stock prices
Potential for large gains
consistency in profits
huge returns low cost
profit
The risk/reward potential
That I can build a fortune starting with not a lot of money.
The predictability of trading patterns
Tim’s openness/quicker gain potential/naivat√©
My interest in gold/resources.
volitility
High potential
timothy sykes website
low cost to get started
im not rich so this look like a perfect opportunity
gains
Fun
Tims book
Price
volitility
potentially large profits
price
The potential to use calcualted strategy and profit
Risk
Saw Tim’s video w/ Jim Altschuler from thestreet.com…the day after he left DDRX too soon. ;)
$$$$
Money
tim on wallstreet warriors
Small account, no margin, so need big movements
Speed
greater potential for return than large cap investing
Low cost to get started
profits
volitlity
Little Investment Monies
no special attraction
i just used a little logic thinking and came up with the reasoning that i would have better chances to beat the market trading small stocks than playing against proffessionals. But this is also just speculation on my part.
Tim’s book
the potential to double my money or more
volatility
I first learned about Penny Stocks and timothy sykes by listening to the disciplined invester podcast when tim came on the show.
cheap, price movement
Price
relatively low cash output/investment for amazing returns
price
The strategy…my account was very small.
Large percentage changes in daily values.
Excitement of making a few grand quickly
ability to make a decent return on little investment
Your book
huge profit margins
Profits
affordability of stock prices
After reading your book an american hedgefund.
Volatility
working at home instead of fighting traffic every day
Recommendation from mentor/coach type who mentioned you specifically by name.
Tim Sykes success
Watching Timmy on livestock
Learning strategy to trade these.
Wall Street Warriors
money making potential
High Volitility
tims story
tim
Actually Reading Tim’s blog, experiences did.
Tim’s book
the gamble
Potential gains
Tim’s book
money
Better gains though a bit more risk
TIM :)
the potential to make $$$$$
I don’t have much money to spend on stocks, so naturally they were a good choice. The abilty to make money quick doesn’t hurt either.
tim
the thought of making lots of money fast
Low cash requirements, capable of making large % returns
Money
the leverage and tims experience
manipulation
These stocks are easily manipulated and therefore shorting them is profitable.
I saw an interview of Tim Sykes on Marketwatch.
It’s a little known area of stock trading, and the big boys don’t trade these, so it seems logical that there would be a lot of profit opportunities.
Your penny stocking dvds
low investment
tim
New trading strategy
the possible large gains in a short period of time
The volume of shares I could trade.
money
Easy, quick money
low price
volatility small buy-in amounts
the rush(greed) of quick gains, but too timid as i knew the losses could hit hard
An American Hedge Fund
I was looking for a way to trade my low account, but still make money.
Wall Street Warriors Season 1
tim’s success
The niche market, no big banks and hedge funds actively trading them.
I saw Tim on Wall Street Warriers, then read his book.
NOt making money trading Beta stocks
big money
Ability to watch for patterns in the trading and profit from it.
Price, Fluxuation, low barrier of entry
You
The ability to start learning about alternate trading starategies.
the potential gains
Market Volatility
Creating large gains with small investments
Referred by another subscriber
The ability to make money with a smaller bankroll.
money!
found it through stumble upon when looking for option stratigies
potentail big profits
the success timothy sykes has had trading them
fast cash
Timothy Sykes
cheap price/ability to purchase many shares
More efficient trading
Little capital
volitility
making money
Profit
I saw Timothy on Wall Street Warriors
The failing economy.
It offers lower cash funds to trade.
I like the reward, after taking some good risks
tim sykes
Nothing Really. I was attracted to Tim’s trading style back when WSW was airing…which was Penny Stocks
affordability, volatility
The amount of money I saw that Tim had made
Possibility for great profit by small pricemovements
low cost, short term, Tim’s story
Your web site demonstrated in a very open, honest way that an individual who was properly motivated and willing to learn Wall Streets dirty little secrets could develop a very reasonable income beginning with a reasonably small investment.
Reward potential; Exciting, emerging companies
Allows small budgets to make big gains
the fact that i can double my money and still have none in the end
ghfj
volatility
Value
Watching tim on WSW make a lot of money
Random link in a forum to Timothy Sykes’s page.
more affordable for a small account
cheap value with high potential gain
return on investments
allows me to trade with limited funds
another way to build a bankroll
The ability to buy shares low and affordable
quicker return
College class.
The volatility.
There is incredible potential to cash in on hype on both sides of the marketing.. buying and dumping or shorting after it starts fading and then tanking.
The posted history of returns
Not sure, to make $ and be in play
The fact that they kind of have their own market.
Tha ability to make quick and substantial profits
% gains
Tims website
Cause they’re full of crap
Tim’s success
easy for beginners to start with due to low proced stocks
making money
Status of current economy and extra income
your book
better return
The different approach and exciting changes
volitility
not much upfront capital required.
volatility
Timothy Sykes initial appearance on Wall St. Warriors
can buy more shares
Volatility and I was just starting my account. I didn’t have to much money, and I read your story. Intrigued me and then I just started trading.
investment in low dollar amount
Tim
Friend’s that owned TIMs DVDs and made huge money - btw I have to fill this out again because I did it on my Iphone and when it transfered me to the store - it didnt show anything - wierd so my responses will be the same.
Potential for large gains
Profit potential
Little dollar amount you need to invest to get high ROI
want to make money
quick money
New to trading and wanting broaden my perspective
challenge
high reward
ability to grt in and out quickly plus volatility
the chance of making limited capital and large returns
making money
Fausto Pugliese’s ideas…
high percentage moves
Opportunity of making high percentage gain
do not need to risk much money
tim result
The high rate of return.
Tim
volatility
Make money
The volatility and quick notion of the trade
The Money
Friends that own tim’s DVDs and learned ways to make huge money!
bad media attention
Volatility, and witnessing pump and dump scams
I like the high reward and low risk of Penny Stocks (low risk if following Tim’s teachings of cutting losses quickly)
High Return
Simplicity
Profits
profits
exciting
Volatility
High reward with the cost of a high risk
friends
tim
large reward
stocktwits
cost
Penny Stocks provide a unique opportunity, that stocks traded on Nasdaq and NYSE dont offer.
Blog posts about Tomothy Sykes
Work hours, earning potential, faced paced.
The small entry/starting point. I am able to buy/short sell more shares
speculation
Potential huge profits
I was first attracted to Penny Stocks due to their volatility. Blue chip stocks were going up 30% in weeks while some Penny Stocks rose 30% in a day. Plus with the small bankroll I started with, it was easier to buy more shares of a $1 stock than a $30 stock.
Learning about Timothy Sykes’ strategy
Profit
high profit potential
with limited capital can buy or short more shares
profits
my low amount of funds i have available and i saw tim on Wall Street Warriors
Curiousity. I was told that they’re not for the faint hearted, so I wanted to find out, what they were, for myself.
ease of use
speculation
Tim Sykes
Learning from Timothy skyes
The opportunity for huge gains
the opportunity to have my money work for me
Returns
it requires low capital
Less coverage from the IBs
Learning more about the stock market and ultimately making money.
It’s more fun than long term investments.
The fundamental of affording to trade stocks with little account!
Wall Street Warrios
money
quick money
Risk vs. Return
Easy money.
Have not yet started.
tims success. i read about it online and thought i could give it a shot
Covestor rankings
Capital Restrictions
money
Tim
Money
Nothing
your mom
Timtohy Sykes amazing reults
The fact you can make money by keeping track of hype.
Gains
Penny Stocks offer the ability to greatly magnify gains if you choose the right one(s).
Profitability
Fast percentage moves
Making money within few days.
wanted to try something new
Quick, short term profits.
The leverage
Large percentage moves
A smaller starting account size and their volatility for quicker trades
volatility

More time to take advantage of info on smaller stocks than larger companies
excitment, and volatility
Opportunity of low market
Volatility
Always loved the swings
I want to work from home and be my own boss
the testimonials from other subscribers
profit potential
talk at green on the screen reading your book
As an alternative stock trading strategy
making money
The potential returns
Tim’s winning strategy
Very lucrative
I believe there is more profit to be made in Penny Stocks.
Trading size available for available cash
good profit
The price without having to trade options.
The ability to leverage my funds in the $1 - $10 range
greater potential for return than large cap investing
appreciation potential
Returns
your success
Tim’s resulsts seems very impressive, I want to learn to get these profits too
profits
The fact that you can start with a reasonably small amount of cash and the fact that I like taking several small gains which add up.
Not having to pt so much money down to own the stock
Small investment account
I only have 10K in capital.
They were stocks that I could afford as a new investor.
Tim Sykes success in trading them.
Massive price movement
low cost
Outsized returns, ability to trade with small $
saw your show
Quick Returns
Making some pocket change while being a full time student
Potential profits; predictable patterns.
tim sykes
The potential for high profits.
quick profits
Their extreme volatility
The profits
Profit potential. Tim Sykes
Finance was my major in college, so it was only natural for me to get attracted with trading.
predictability
profit potential and low start-up investment
ability for quick gains
Seeing Tim on TV Feb 08
No big players and you don’t have to be a genius
quick money and learning a new trade
Very high return in short term, and the adrenaline rush.
the possibilities/financial rewards
Smaller risk
ability to profit in a short amount of time without a great deal of capitol
n/a
potential gains
Wall Street Warriors and this Website
to make money
Quicker way to make money.
Haven’t traded them yet, still following Tim though.
your account performance
I’ve traded them in the past. Just not successfully.
Volatility, Gains, and Lack of Institutional Players
you
Larger profits per trade from a small account.
volatility
They are cheap
money
big moves
The outstanding possibility for great returns in all market conditions.
low level of the investment
quick profits, seeing stock jump from 1 to 9.
small budget, high gains in small amount of time
Money
Quicker gains and little success with buy and hold investing
short time frame for profits and relitivly small budget
Penny Stocks are cheaper to buy
Volatility
price
Volatility and price.
The amount of money that I am starting out with. I am using Pennystocks to build so one day I can afford some of the $10+ stocks.
the ability to purchase more shares with my current account size
higher percentage possibility of profitable trades
seen him on cnbc or fox
Higher reward lower risk
Making money
Opportunity for huge percentage gains quickly
The volatility, and the re-use of the same chart patterns across all diffrerent kinds of stocks.
percentage win
Watching Tim on Wallstreet Warriors
You don’t need a lot of money to enter the stock game
The little money required to start trading and the large profit potential.
FAST PROFIT
Thinkorswim
The quick movement in price changes.
Surprisely seem to be less risky than traditional trading
It seemed more sure and quick than regular investing.
because I can afford to trade them in order to meet my overall goal.
Lack of Coverage
Short term and high profit
Tim
the gamble of it and to be a big player in one stock
Actually, just from looking from Tim’s history with Penny Stocks and how profitable it was for him got me attracted.
Performance and testimonials
The Volatility and potential for large gains
Being a Big Fan of Tim’s from Wall Street Warrior
better odds
higher volatility, better short term earning potential
high risk high return
Timothy Sykes
your success
the opportunity of taking advantage of big % increases and/or declines
Tim’s book
trading profit potential
money opportunity
Quick money
Volatility
Hearing Tim on Disciplined Investor Podcast
How easily it was to make money because of less volume/news that influences the prices
Small capital and large reward
MAKE A TON OF CASH
A way to get into and learn about the market with out too much money
Potential for big profit.
cheap stks and can move
Saw timsykes interview on msnbc
the low purchase prices with huge potential gains
they aren’t boring
High risk/reward
the book “an american hedge fund”
wall street warrior
You
High returns
potential
If properly educated and played, instant money - little common sense. Tim really makes it easy for newbies to earn some money
Brain Shannon was going to do a seminar in NY at the trade show but got canceled I checked out Tim site & like what a read I have a small trading acount like the small stocks to trade
Looking for an edge
Being a small money person
The chance to hit it big on a few trades.
Tim, money, the ability to use a small account
More ROI
High risk/reward
Possible decent % gains with risk management
Low amount of cash needed to make large profits.
not widely talked about
i hate it
excitement, money
Earnings
Making money with a small account
Watching a video of you on youtube where you talked about the volatility of pennystocks. I was 14 at the time and wanted to have some fun in stocks, and the S&P 500 wasn’t really any fun
The ability to be more leveraged without risking tons of money.
Possible huge gains in a short time
Cash
Tim’s reputation
affordability and potential rewards
Timothy Sykes reputation and I wanting to make more money
the risk to reward is higher
to make money trading
making money off stock consistenly. volitility, predictability
volatility, tim sykes
volatility and potential return
volitility
The profit potential compared to stocks with higher prices.
their cheap prices
Tim’s achievments
Cheap, highly volatile, potential for larger gains that with traditional investment vehicles
Tim’s visit to SUNY Buffalo
simplicity
I wasn’t attracted to Penny Stocks, till I saw how Tim treats them: never trusting, just shorting.
Tim Sykes on WSW and money
Potential profits
I never traded Penny Stocks till I saw Tim’s videos. His exuberance and confidence is what drew me to it.
tim sykes
High Risk - Greater Reward
cramer
my small trading account which ws not enough for blue chips
Risky market conditions since last year
Small money to start, Great risk/reward
you
I can trade with lower capital
Leverage
Reading Tims book
You were number one on Covestor
Cheap price. Can buy many more shares.
Easy profit
lossing money, hearing about your success
I heard Tim on the Disciplined Investor.
Price
The risk/reward potential
Being able to invest without a lot of money
Needed another way to play the market
Timothy Sykes DVD’s and website
Affordability.
Timothy Sykes DVD’s
I don’t have a lot of money, and I heard from Michael Goode that Tim was good at trading them
To make money doing something interesting
Gains and significant appreciation
Opportunity to start small end make something significant in the end
Action
Following Tim on twitter
The volatility
You don’t need alot of money to be successful
the fun
the buying power
Tim’s story and reading his book.
Ability to catch big % moves in a day
the amount of shares you can buy for relatively little money
I am interested in all markets
Quick relatively large (+10%) returns
tim sykes
Profits
money
Making money
It is easy to buy a few hundred shares of something with a few hundred dollars and seeing it move up or down 25% in a day (vs. buying like 2 shares of AAPL and watching it move up a dollar over a week)
Money
I want to make money
The chance to make money with big returns.
You and your strategy; small initial capital
Charts clearly seem more predictable foe making money than picking long
Timothy Sykes
Tim’s story and the possibility of LEARNING from him
Not a lot of money needed to start
High profits in a short time
Reading about it
Could not afford highly priced stocks.
Tim Sykes on WSW
The general distrust of the sector.
potential of profits
High potential to make profits
I want to trade for a living.
your website and blog
tim sykes
high growth potential, without the BB’s manipulating all the time
risk vs reward
high roi
Curiosity
Affordability, Volatility
Making a small side income
Large % moves
The Volatility
short term trading strategies with moderate risk and larger rewards
Tim Sykes
able to trade with minimal capital outlay
That it was/is overlooked.
The ability to make a lot of money with little money
high potential profit
The volatility of these securities
the need to learn new things about all the different trading stratagies.
Volatility. Big percentage swings.
$s
the risk and big gains
Low price. High % . Get idea from tim
price action
High volitility
quick returns
Opportunty to quickly make substantial gains. Volatility/Percentage Moves
Money and fame, world peace
Current volatility of market
tims amazing gains
tims amazing gains
Quick monetary gains
large swings
Like everyone else in the world…fast money!
The fact that I can buy many shares of Penny Stocks with my small portfolio account.
I have a small account and wanted quick gains
started w/ your appearance on wsw and then followed you here
I wanted to take advantage of extreme volatility.
Reward potential
Tim’s high return percentage
Need for quick action, impatience with another systems waiting. Here I win or loss money and feel more in control than letting the money invested for longer periods of time
Low capital requirements
Percentage Gains
I decided to learn several types of investments and trading - Tim’s performance convinced me to try it.
there’s no casino nearby here ;-)
Massive profits, satisfaction of making a good trade
Big profit
Profits
profit margin
The Idea of being my own boss
Potential profits vs more “stable” stocks
fun/money
I made a ton of money on my first trade.
The potential to make huge gains faster than anywhere else
Making Money at home
quick & high profit
Being involved with toxic bridge financings for OTCBB stocks.
make money
don’t need much start up capital
profit opportunity
Tim Sykes
Huge profit potential

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