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Promoters- Tim Sykes Penny Stock Trader

The Good And Bad With Promoted Stocks

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Written by Timothy Sykes
Updated 12/14/2022 8 min read

Some of you may already know about my love/hate relationship with promoters…

And for years I have always called out promoters being shady, take a look…

Just the other day Zach Morris and other “FinTwitters” got charged for a $100-million stock manipulation scheme.  

Pennystocks are filled with promoters, but that shouldn’t be a reason why you shouldn’t trade them!

In fact, I am happy there are pennystock promoters out there because they make a lot of these trading opportunities so predictable!

The majority of the stocks that we trade are actually being pumped by promoters, but maybe some of you didn’t realize it…

And that is why it’s so important to understand these patterns I share with you daily as it can help paint a tale-telling sign of what the stock’s next move may be.

Now, not everything is going to work 100% of the time, but you should never buy a stock that someone is telling you to hold.

Those stocks are being liquidated by promoters, and you’re holding near the top and the stock will eventually fade to nothing.

So if you are wondering how you can make promoters pay, and how to profit from their lying ways, here is what you can do to use this to your advantage!

How To Recognize A Pump

trading patterns types
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Do you want to know how you can recognize if a stock is being pumped-up by promoters?

Think of it this way, the best way to spot a pumped-up stock is to assume that every pennystock is a pump.

What exactly do I mean by that?

Well, it all begins with what I tell you to look for every morning and that is big percent gainers. 

Pennystocks that have volume, and big percent moves, might be the start of a move from a promoter’s work.

In this ramp-up phase, which you can see in my framework,  this is the momentum that most of these bigger plays need.

These promoters will start talking up Twitter, Reddit, or any type of social media platform they can use to their advantage to help attract newer traders that want just the next “hot” stock and to get rich quick.

Hate to break it to you, but these pennystocks aren’t going to be the next big thing, but they can help make you rich if you know what to look for.

The Same Exact Pattern

The majority of these pennystocks have the same pattern over and over again…

This is why everyone here should study this framework inside and out. 

Nothing is an exact science, but this is pretty close as this paints a bigger picture of what you can expect to see as it happens most of the time.

Let’s take a look at a few examples…

Meta Materials Inc. (OTC: MMTLP)

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MMTLP chart 1-day candles | Source: StocksToTrade

Clean Vision Corporation (OTC: CLNV)

CLNV chart 1-day candles Source: StocksToTrade

More Breaking News

Camber Energy, Inc. (NASDAQ: CEI)

CEI chart 1-day candles Source: StocksToTrade

Many of you may remember the day when I tried to trade CLNV and the stock just wouldn’t bounce…

And I eventually realized that I was being blamed for shorting the stock, and I don’t like shorting stocks, I was just trying to dip-buy CLNV.

It’s important to remember that not every dip-buying opportunity will work, so it’s important to remember to cut losses quickly.

All of these stocks start the same exact way with the ramp-up, and then they hit a peak and come crashing back down to earth.

Pennystocks can be so predictable and that is why I urge everyone here today to make sure they fully understand these patterns.

Whether it is the dip buying pattern, break-out pattern, or first green day pattern, all of these are patterns that fit perfectly inside of my framework.

Profiting On A Promoters Pump

Millioniare Mentor Update Avoid the Slippery Slope
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The best way to profit on a promoter’s pump is to first recognize the next big play.

Every morning when you are scanning for stocks to trade based on volume, big percent gainer, it can help you start to investigate what trades may be the best potential trades for the day.

As these stocks start to spike, they will eventually come crashing back down, but they don’t need to go full Supernova.

Source:Profit.ly 

Many of you were familiar with these trades of mine, but being able to spot this pattern has made it so predictable!

Take a look at Global Developments, Inc. (OTC: GDVM)

GDVM chart 1-day candles Source: StocksToTrade

Notice that the stock starts to ramp up and then gets higher and higher, until it cliff dives.

These are the panics that I wait for because it makes the dip buy so much more predictable.

Promoters will look to bounce the stock so there isn’t an investigation, they don’t want the stock to just drop 70%,80%, or 100% in just a day

So these promoters will dump most of their shares as they profited on the way up, and wait for the stock to bounce before they liquidate even more.

Final Thoughts

e trade review
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I look to call out every promoter every chance I get, they have ruined the lives of many traders who invest everything into a stock that they thought was supposed to go to the moon.

Let’s face it, these stocks are not worth anything and that is not the right way to trade any type of promoted stocks.

These promoted stocks can be very profitable, as long as you know how to recognize the patterns I am teaching you every day.

Continue to study my framework and look back at other stocks I have traded to see if you can recognize how they all have the same predictable pattern.

Study hard!

Tim

P.S. –  Let’s face it, we all make mistakes when we trade.  If you are new to trading, there may be a very common mistake you are making that you may not realize.  Let’s face it, we can’t be perfect with every trade.   Here is what you can do to prevent those common mistakes and how you can improve your trading game! 


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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”