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Trading Tips-Tim Sykes Penny Stock

Prepare for the Greatest Trades of our Lifetime

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Written by Timothy Sykes
Updated 5/19/2022 5 min read

Hey trader. Tim here.

I know that trading hasn’t been easy lately. But trust me, opportunity is right around the corner…

Some markets are for earning and some markets are for learning.

That’s why I’m so dialed in — teaching my students techniques and strategies to beat the market.

I’m gearing them up for potential once-in-a-lifetime trading opportunities.

Will you be ready to strike when opportunity stares you in the face?

Here’s how to start…

Practice Consistency

Do you know why my Supernova Pattern is so popular?

It’s easy to spot and highly tradeable.

Best of all, it works in any type of market.

And it’s the best way to practice and prepare for the next opportunity.

Some patterns and traders only thrive in bull markets.

I may not pull in millions every year, but I’m not boasting when I say that I’m consistently profitable.

Of course, I occasionally have losing trades that wipe out winners. Everyone does.

What I’m saying is that my style doesn’t rely on a few massive windfalls. I grow my account steadily over time with small losses and better gains.

These are the trades I took from May 10-19:

All my trades are posted on profit.ly

As you can see, I don’t win on every trade.

In fact, that SOFI loss was larger than any single profitable trade in the bunch.

But out of the eleven trades, I only lost on three, and one of them was tiny.

Traders need to practice CONSISTENCY.

Even if your account growth relies on a few big wins, they should occur with some regularity.

I want every one of my students to deliver predictability. Your trading should be so consistent that it’s almost boring.

Risk Small, Lose Fast

Tim Sykes checking his top penny stocks list in Italy
© Millionaire Media, LLC

The $850 loss in SOFI aside … If you look at my trading over months, you’ll notice one constant — I lose small.

When I trade, I trade on MY terms.

If a stock doesn’t act right, you can bet I’ll cut it loose.

Now, you might expect to see a lot more losses in my trading if that were the case.

However, there are two tricks I use to keep strings of losses at bay.

First, I let the stock come to my entry. I never chase.

This ensures I get the right entry price to match my setup.

Second, I want to put the stock’s momentum in my favor.

In yesterday’s newsletter, I talked about my recent trade in Redbox Entertainment Inc. (NASDAQ: RDBX).

I pointed out how I used the breakout momentum to gain an entry into a long position.

More Breaking News

Once that momentum stalled, I cut the trade.

Journal the Action

© Millionaire Media, LLC

Every successful trader I know keeps a diary of their trades, whether digitally or manually.

A good journal helps uncover problem areas and reveals opportunities.

It also keeps you honest about what’s really going on.

I had one student who, by all appearances, was a great trader. But he couldn’t turn a profit…

When I had him put pen to paper, we found two problems.

First, while he didn’t take many losses, a few excruciating ones had decimated his account.

Second, he had a bunch of stupid, losing side-bets that added up over time. (When I say stupid, I mean they were pure gambles based on emotions, not setups.)

You might think that after making millions I wouldn’t need a trade journal.

But the truth is, journaling helps me stick to my trading and lesson plans.

Even now, I go back and look at my notes on my results over the past several months.

In fact, that’s how I began to see the buildup of the coming market crash I talked about in November.

My journal keeps me from taking on too much risk while helping me identify patterns in the market.

The Bottom Line

It’s tough to stay patient.

That’s why I work my butt off to create content for my students to study.

I want them to get the best possible education and learn the right way to trade the markets.

And that all starts with a Challenge…


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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. Read More

* 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”