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Are you thinking about joining Timothy Sykes’ trading chat room, getting his trading courses, and trading alert service?
Is Timothy Sykes legitimate?
Can he really help you become a profitable penny stock trader?
Are his trading chat room and daily trading alert service worth it?
Are there any other better alternatives to his penny stock trading services?
In this Timothy Sykes’ review, I will go through everything you need to know to help you make an informed decision.
Timothy Sykes Background
Timothy Sykes came from middle-class Connecticut.
While in college, he persuaded his parents to let him use $12,415 in bar mitzvah gift money to invest in the stock market.
By the time he was a senior in college, he was a self-made millionaire, having made 1.65 million from trading penny stocks.
Later on, he established a hedge fund.
Ultimately, his penny stock trading strategy was not scalable, and his fund lost 35% when he tried long-term investing instead of trading.
So, it turned out Timothy Sykes should have stuck to what he is good at – trading instead of long-term investing.
After that, Timothy Sykes appeared on the docu-series “Wall Street Warriors”.
Thanks to the show’s success, more and more aspiring traders wanted to learn his trading strategy.
This led him to change his focus to helping new traders become better at trading.
In order to show that his trading strategy was not a fluke, he decided to recreate his initial trading success by again with a starting capital of $12,415 in 2008.
As of now, he has turned $12,415 into $5,438,732.
Today, he still trades actively to show his trading students how it’s possible to make money trading penny stocks even with a small trading account.
Timothy Sykes Net Worth
It’s estimated that Timothy Sykes has a net worth of more than 15 million.
How does he make his millions?
First of all, he makes money trading penny stocks.
But, the money he made from trading is just a small portion of his total income.
The majority of his income comes from the following sources:
- Trading courses & trading chat room subscription (i.e. TIM’S ALERTS & Video Lessons)
- Stock scanning & charting software (i.e. StocksToTrade)
- Trade analysis/verification service (i.e. Profit.ly)
So, it’s a fact that he makes more money by teaching people how to trade penny stocks.
Having said that, it’s NOT uncommon to make money by showing other people how you are making money.
For example, Robert Kiyosaki made a lot of money by investing in rental properties.
But he has made even more money by teaching people how to invest in rental properties through books, seminars, and workshops.
Here’s another example.
Joel Bauer made a lot of money through speaking gigs, but he has made more money by teaching people how to become a better speaker and make money through speaking gigs and seminars.
There are so many other examples:
- Bloggers teach other people how to make money blogging
- Affiliate marketers teach people how to make money doing affiliate marketing
- Freelancer writers teach people how to make money doing freelance writing (Side note: I highly recommend this freelance writing course Write to 1K)
- Freelance virtual assistants teach people how to make money offering virtual assistant services
So, the point is that just because they are making more money teaching people the skills they used to make money does not mean that they are scammy or less legit.
Let’s look at the facts.
They have made money doing what they are good at, being penny stock trading, rental property investing, blogging or freelance writing.
So, they have the know-how.
This knowledge of theirs is valuable to people who want to achieve the same results as them.
Next, the reason why teaching people is more profitable is that it’s scalable and it’s almost 100% profit (minus transaction costs and marketing costs if any).
Smart business people always want to enter the education space whenever they have the chance to.
So, I would say Timothy Sykes is a very smart business person.
Now, let’s see whether or not he is really a profitable penny stock trader.
Timothy Sykes Trading Records
His over-the-top marketing might not be my cup of tea, but I must say that I am really impressed by his trading results.
Because not a lot of traders have such consistent and massive returns year after year for 7 years straight.
One of the best ways to tell if a trader is good or not is to see if there is consistency in their trading results.
If they can be consistently profitable year after year, that means the trader has solid trading skills and knowledge that you can learn from.
With Coronavirus going on, how has his trading performance been?
Below is his trading statistics from beginning of 2020 to 24th June 2020:
As you can see, he is already up almost half a million.
If you look at the numbers closely, you will see that he really knows what he is doing.
Below are the important trading statistics you can check to determine if a trader is really good or not:
- Percentage of profitable trades
- Average winning trade $ must be bigger than average losing trade $
- Largest winning trade must be bigger than largest losing trade $
- Largest loser as % gross loss
- Average percentage loss is less than average percentage gain
A profitable trader knows how to manage his risk.
If his average loss is more than his average win, there is definitely something wrong with either his trading strategy or his risking management or both.
And if his largest loss is bigger than his largest win or his largest loser takes up a big percentage of his total loss, it signals that he doesn’t know how to cut his losses short.
If a trader cannot manage his risks well, he is NOT considered a good trader even if a trader is overall profitable.
Now, let’s look at Timothy Sykes’ trading statistics.
First of all, his average winning trade (i.e. $1,300) is more than average losing trade (i.e. $530).
Secondly, his largest winning trade (i.e. $17,000) is much more than his largest losing trade (i.e. $2,250)
Thirdly, his average percentage loss (i.e. 3.5%) is less than his average percentage gain(i.e. 12%)
Lastly, his largest loser as a percentage of his total loss is about 8% which is a good sign.
All these numbers are telling me that his risk management is very good because no trader can be 100% right and it’s essential to cut losses short when you are wrong.
Now, let’s see how profitable he is or rather how profitable his trading strategy is.
From the table above, you can see that his percentage of profitable trades is about 88% which is quite high.
His largest winning trade made him $17,000.
So far, he is already up almost $500,000 this year despite the market turmoil.
You see, regardless of whether market is crashing or going up sharply, you can make money with trading because there is a lot of volatility.
BUT, you have to know how to read the price movement of the stocks you are trading.
If you don’t know what you are doing, you could lose a lot of money in this volatile market environment.
So, you should always learn how to trade the right way before you start trading with real money.
Now, that brings us to the next question.
Is Timothy Sykes the right trading teacher to learn from?
And can he really help you make money trading penny stocks?
Can Timothy Sykes Really Help You Make Money Trading?
Okay, now you have seen that his trading records are quite impressive.
But, can he really help you get the same results as him?
Before we get to the answer to this question, let’s look at the facts first:
- It’s possible to make money trading penny stocks
- Penny stock trading can be risky and at the same time it can be highly profitable, thanks to the large price movement in penny stocks
- Penny stocks are NOT for long-term investments because the underlying companies are mostly very shaky and loss-making
When it comes to investing, I recommend you stay away from in penny stocks because the underlying companies are not profitable businesses.
But, when it comes to day trading, I think penny stocks are a good candidate because of the volatility in their stock prices.
And trading is all about profiting from the price volatility.
So, can you make money trading penny stocks?
It’s definitely possible if you have a profitable trading strategy.
Without a profitable trading strategy, it’s equally easy to lose a lot of money because the price can move in the other direction fast.
So, if you are serious about day trading penny stocks, then I would recommend you learn from a profitable trader with a consistent track record.
Now, does Timothy Sykes fit the bill?
I think so when you look at all the facts and numbers.
In fact, he is quite straightforward in his blog when he talks about penny stock trading.
Below is a screenshot of what he said about penny stock trading in 2020:
So, penny stock trading is NOT a get-rich-quick scheme because it actually takes a lot of hard work and discipline to make it work.
Yes, Timothy Sykes can show you his penny stock trading strategy and his trading thought processes, but at the end of the day, you have to internalize all the trading knowledge and be disciplined to trade stocks.
How Timothy Sykes Can Help You Trade Better
First of all, he does not offer standalone trading courses.
If you want his trading videos, you can get it for free when you subscribe to his trading alert services.
TIM’S Alerts ($74.95 /Month)
- Daily Chatroom Access
- Daily 5-10 Stock Watchlist
- Realtime SMS, Email, and Push Alerts
- Realtime ProfiDing Trade Alerts
- iPhone & Android App
The next tier is Pennystocking Silver Membership ($149.95/Month) which includes everything in the TIM’s Alerts plus his 6,000+ Video Lesson Library and Weekly Video Lessons.
If you already know about penny stock trading, then TIM’s Alerts is good enough for you.
But if you are a complete beginner, then I would recommend the Pennystocking Silver Membership which comes with all the educational video training.
So, is it worth investing in his penny stock trading alerts?
Well, trading penny stocks are risky because they are very volatile.
But, on the other hand, it’s exactly the huge volatility that makes it possible to earn big bucks (or lose money) in a very short period of time.
If you really want to give penny stock trading a try, it’s best that you learn from someone who has achieved the success you want and there is no better trader to learn from than Timothy Sykes.
My advice is that you can sign up for TIM’S Alerts ($74.95 /month) for one month and see if it’s a good fit and if you can get a lot of value from him.
Even if you decide it’s not a good fit, you have at least given it a try and the maximum downside is $74.95.
But, if it does, chances are that you can easily make back your investment and more in a single trade using his Trade Alerts and his trading methods.
Here are some of his students’ success stories based on profit.ly data:
- Mark Croock made nearly $1.38 million as of the end of 2019
- Kyle Williams is up over $114,000 as of the end of 2019
- Tim Grittani is up nearly $8.7 million as of the end of 2019
- Dom (MichealGScott) amassed $233,000 in trading profits as of the end of 2019
Check out TIM’S Alerts