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9 Penny Stocks You Have To Know About, No Really, You’re Gonna Tell All Your Friends

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Written by Timothy Sykes
Updated 2/21/2021 3 min read

This was sent to TIMalert subscribers in the middle of the night, waking their lazy asses up! Don’t you wanna be that hardworking? Yes you do…I know you do, sleep is for wimps!

If you read my main blog, you know I just announced a brand new 6 hour
instructional trading DVD that teaches my research methods, its called
TIMfundamentls, check it out! Lots of you have asked for it so after much
work and filming, it’ll soon be ready (getting edited right now)….its
basically how I go about my research every day to find stocks in play, what
websites I use, my daily routine, basically TIMalerts deconstructed…let
me know if you have any questions, but I think you’ll love it!

I’m short 2000 shares each of XTXI and XTEX overnight, already up $400 on
the positions, but holding since as I explained in my TIMalert yesterday, both
have broken through major support after rising exponentially on oil
rebound/January Effect hopes…shorted XTXI previously before it broke
support, was wrong, now we should see the difference of what it means to
short a stock AFTER its broken support.

BONT just keeps going higher, January Effect in action, no reason to short
such a gradual runup…yet

DSTI displayed some nice sideways price action and fade into the market
close yesterday….still green on the day though…today hopefully there’s one
last spike or this thing is really gonna fall apart fast so be ready to
short

EXAS rejected a buyout, cocky failing carcass of a company, kinda like
YHOO…no play here, there’s gonna be more news that’s unpredictable

XTXI closed perfectly, oil is down again today so far so I want to cover in
the low $4s, ideally on a morning panic

XTEX is basically the same as XTXI just less liquid…sorry for putting XTEC
in my alert email yesterday, I try to get them to you fast so typos will
happen…gotta check the TIMalerts website as I can update that easily.

PALM is another one I shoulda woulda coulda shorted yesterday
afternoon…faded nicely, but still above 2-day support (hence no short by
me…oh yes, little Timmay learning discipline? A little…) Could spike in the
morning or show panic, we’ll see, probly no play by me unless there’s a nice
afternoon fade (all these intraday patterns are detailed in my
PennyStocking Part Deux DVD)

PARD was a great fader yesterday…at least one TIMalert subscriber found
shares and shorted nicely:

PARD 2500 @ 3.69 made 700 off the trade.
-vestor707

It closed right under $3.40 support, should see a morning panic today too, I
couldn’t find shares to short ☹

RAMS had a nice quick drop off the high for 50 cents/share…missed it, next!

STKL is another hot one to keep an eye on, nice spike and fade yesterday,
gotta be quick on it though

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Timothy Sykes

Tim Sykes is a penny stock trader and teacher who became a self-made millionaire by the age of 22 by trading $12,415 of bar mitzvah money. After becoming disenchanted with the hedge fund world, he established the Tim Sykes Trading Challenge to teach aspiring traders how to follow his trading strategies. He’s been featured in a variety of media outlets including CNN, Larry King, Steve Harvey, Forbes, Men’s Journal, and more. He’s also an active philanthropist and environmental activist, a co-founder of Karmagawa, and has donated millions of dollars to charity.
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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”