$UPtrend Pennies$

[PennyMann]

Timothy Sykes info, an infamous penny trader who made millions through short selling on pump and dumps:

From Ospreyeye 7/29/13

"ALERT: you have to check this out: .....please read & tell me penny Stock shorting is a myth........because I will laugh the next time I read that......this is solid proof right here that crews of people are being taught how to short penny stocks.........It's a fact!..........please read........here are a couple of highlights......

For several years, Tim has been teaching students how to trade using his core strategy. The strategy involves short selling penny stock pump and dumps. He finds penny stocks (defined as trading at less than $5 per share) that are worthless at the core. The companies are shams, which generally tout some amazing product or service, but have no revenue, no profits, and often no real operations.

Timothy Sykes looks for these hyped worthless stocks, watches the pump, and shorts the dump. Short selling is profiting from a decline in stock price. It involves borrowing shares of the stock to sell first (at a high price) and then buying back the stock (at a lower price) later to replace the shares that were borrowed.

Short selling pump and dumps has been Tim’s primary trading strategy

I am focusing on shorting pump and dumps because I’m so new and need to get good at this before I worry about using other strategies.

So, here we have it.......proof that shorting penny stocks does happen.......and rookies are being taught......they are the aggressive jerk types.......think repetitive bold face type posts saying the same thing.......& then there's the cool & collective veteran......alway's busting out facts & info. That's superior to the avg. investor........these are red flags......

You have to realize that bashers are trying to make a profit........it's much easier to convince people to fold & sell than it is to convince them to buy in the first place......the Bears have it made in Penny Land.......preying on the naive investor..........Art of War my friends......keep your friends close & your enemies closer........nothing is as it appears in penny land........the Most Informed usually win......do your DD.......& trust the charts.....they don't lie........I got this info off the Fraud File Blogs.......pretty interesting source for this info......"but I think that my fraud investigation skills will serve me well in seeking out scam companies that are being pumped and dumped."......interesting......the fraud guys are profiting off the fraud......haha.......the circle of life.......so, who's the bad guy?.........a little hypocritical don't you think?.....& isn't this exactly what I've been saying all along?......now we know it's not a myth........Penny stocks can & do get shorted.......$$$

http://www.sequenceinc.com/fraudfiles/2013/04/timothy-sykes-millionaire-trading-challenge/

Timothy Sykes: Millionaire Trading Challenge
8 April 2013
I recently joined the Trading Challenge being run by Tim Sykes. I introduced you to Timothy Sykes in 2008 when I reviewed his book An American Hedge Fund. He took about $12,000+ that he got for his Bar Mitzvah, and turned it into $1.65 million as a young high school and college student.

And then he did it all over again… Starting with the same amount in 2008, and growing it again just to prove that he can profit from the stock market without a huge capital base to start.

For several years, Tim has been teaching students how to trade using his core strategy. The strategy involves short selling penny stock pump and dumps. He finds penny stocks (defined as trading at less than $5 per share) that are worthless at the core. The companies are shams, which generally tout some amazing product or service, but have no revenue, no profits, and often no real operations.

Promoters get paid to pump these penny stocks, often receiving shares of stock for their efforts. Thus, they have a vested interest in getting the stock price to rise quickly, as they will dump their shares at a higher price to cash out. If the promoters are good, the stock price rises quickly as gullible investors believe the hype and want to get in early with this new amazing technology or product!!!!

Again, the companies are shams and have no real technicals backing them up. They have little to no revenue and profits, and the stock price rises only in response to the promoters hyping and pumping the company.

Timothy Sykes looks for these hyped worthless stocks, watches the pump, and shorts the dump. Short selling is profiting from a decline in stock price. It involves borrowing shares of the stock to sell first (at a high price) and then buying back the stock (at a lower price) later to replace the shares that were borrowed.

I joined the Trading Challenge, which is really less of a challenge and more a course of study to learn this method. There is a ton of information to learn, but I think that my fraud investigation skills will serve me well in seeking out scam companies that are being pumped and dumped.

Short selling pump and dumps has been Tim’s primary trading strategy, but he also teaches students other methods of profiting in the stock market. I am focusing on shorting pump and dumps because I’m so new and need to get good at this before I worry about using other strategies.

One of my frustrations, however, was figuring out how to get through all the material. There are more than 900 video lessons to watch, along with a slew of DVDs outlining the strategy and the methods Tim uses to find these companies, watch the price action, and make a move that is calculated to give him the best risk/reward. There is simply a ton of material, and the learning path is not exactly linear. You sort of have to dive right in, prepare to understand very little of what you see at first, keep watching, and eventually it starts to fall into place.

I’m writing this article to offer a little bit of advice to new Trading Challenge students. You have to just start watching. But where should you start? If you join the Challenge, you’re going to get 60 emails (one per day) linking to best videos for beginners to watch. But you need to watch much more than that to get your bearings.

Start immediately on the DVDs, beginning with PennyStocking Part Deux and TimFundamentals Part Deux. And watch the videos linked in the posts below. With so many videos online, it’s hard to know which ones to start with. But someone has already done the work for us and linked to some of the best video lessons:

The Best Video Lessons Every Penny Stock Trader And Short Seller Should Watch
Should You Join My Trading Challenge? [10 DAYS OF STUDYING EXAMPLE]
15 Lessons For Penny Stock Beginners [WATCH ASAP]
20 Videos On The Stocks To Buy (How To Spot & Buy Breakouts)
This strategy is not simply about finding crappy companies to short. It is about finding them, watching the price action, and knowing when to short in order to profit. If your timing is wrong, you can lose a whole lot of money very quickly. This article summarizes some of the key things to remember when trading Tim’s strategy.
Similar Posts:

Getting Started in the Tim Sykes Millionaire Trading Challenge
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Herbalife Documentary by Herb Greenberg: Selling the American Dream
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Tags: an american hedge fund, millionaire trading challenge, penny stock, short selling, tim sykes, tim sykes fraud, tim sykes scam, timothy sykes, timothy sykes fraud, timothy sykes scam, trading challenge

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Comments (25)

Faizal
19 April 2013 at 1:37 pm | #
Hey Tracy I’m thinking about signing up as well, what do you think so far? The $5,520 upfront fee seems a bit high, is it worth it?

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Tracy Coenen
19 April 2013 at 1:46 pm | #
It has been worth it for me. All of the DVD sets are worth it! And the weekly webinars with Tim and Michael Goode are invaluable. Direct access to them is worth a lot, and I am happy I went this route instead of just the PennyStocking Silver subscription (which gives you access to the online video library).

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Chris Hatton
22 April 2013 at 8:44 am | #
Hi Tracy,
I searched several pages to see if this challenge was reviewed as a scam and could not find any such reviews! Sykes seems to be very legitimate. I have talked to Doug (his colleague) about the challenge and was accepted. I truly believe that they just don’t accept every application. They do want this program to work. Your review made me feel more confident about getting on board and it is great to know that it isn’t a linear study! I would prefer it that way however if it all clicks one day, I can just imagine how well I would do in this market segment!

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Tracy Coenen
22 April 2013 at 4:03 pm | #
Chris – Tim has been an acquaintance of mine for several years, and I have followed his career during this time. I also have two trusted friends who know him quite well.

During this time, the only people I have seen call Tim a scammer are:

1. Those who actually ARE scammers and are upset because Tim exposed them
2. People in other lines of work who have never participated in his programs or sought to learn any facts about the programs (The woman in this story is a great example of such: http://www.forbes.com/sites/michaelsimmons/2013/04/09/how-to-give-potential-customers-what-they-want-while-still-being-true-to-yourself/)

Here’s where people get it wrong…

Because Tim flashes his wealth as a marketing tool, people assume he is pushing a “get rich quick scheme.” Nothing could be further from the truth. I am ultimately learning a low risk trade strategy (but only low risk if I do it right!), but it is taking hours and hours of studying, and will take many hours of watching and waiting before I trade.

Doing it right can be difficult. So it will take a lot of time to learn and refine but I am willing to make the time commitment. Ignore Tim’s bravado and focus on learning.

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David
1 May 2013 at 4:34 pm | #
I just discovered your blog and am at a loss to understand what I am reading here. You expose MLM but think this is legit? Reminds me of a conspiracy theorist who likes to debunk other conspiracy theorists to make their own conspiracy theories seem more legit.

If he’s developed a system that works so well why isn’t he using it to make himself ridiculously wealthy? Oh wait, it’s because he wants to help other people be successful, people who just happen to be making him wealthier by buying into this nonsense. I have some money waiting for you in Nigeria.

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Tracy Coenen
1 May 2013 at 4:55 pm | #
Tim has developed a strategy for trading which works, but is not scalable past a certain point. So he has created a business teaching trading to students.

His core strategy relates to penny stocks, but he does teach how to research, analyze, and trade other stocks.

It’s easy to dismiss this as a get-rich-quick scheme, but that’s not what it is. It is a course that takes a lot of learning, practicing, and refining in order to be successful with it. So yes, I am spending a lot of time learning about various trading strategies, and hope to implement them successfully.

MLM, on the other hand, is a complete scam. 99% of people are guaranteed to lose money in MLM. Not so with the stock market, and certainly not so if you are willing to learn how to do it right.

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John Thomas
6 May 2013 at 5:12 am | #
The biggest problem with Tim’s system isn’t the system. Yes, short selling scam stocks works, but you won’t be able to find a broker to short most of Tim’s picks. And if you do, you won’t be able to get more to short if the stock happens to go up first, trapping you in at alower price and sometimes being forced to buy in at a higher price. What tim teaches works in theory. Reality is a lot different. This was a very easy way to make money BEFORE 2004 when the NASD changed rule 3370 and the SEC passed Reg SHO, making it nearly impossible to short penny stock pump and dumps. If you find a legitimate broker that will let you short penny stocks without a borrow (referred to as naked shorting), chances are they won’t be doing it legally and sooner or later the gig will be up. For instance, Tim recommends suretrader. Now I have no idea if Suretrader will short sell these stocks for you, but suretrader is not really allowed to operate i the US so if they do, it won’t be long lasting. Research a guy named Amr “Tony” Elgindy. he had a website where traders discussed these type of shorts and traded them, mostly out of Canada before the rule changes in 2004. Most of his income came from the 1.6 mill a year in website subscription fees, not his actual trading, although back then it was possible to sell short the P & D stocks by going to Canada and shorting them naked.

Good luck with your challenge. Please report your results.

Reply
Tracy Coenen
6 May 2013 at 6:48 am | #
Yes, I found out quickky that these stocks are hard to borrow. Tim does teach other strategies within the program, so I am hoping to use those too. I will report back. I will say that so far I have learned a lot about technical analysis.

Reply
Christopher
18 June 2013 at 11:26 am | #
Hey Tracy,

How are doing so far in the program? Have you started trading yet?

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Tracy Coenen
18 June 2013 at 11:48 am | #
Christopher – I have not started shorting penny stocks yet. I have not been able to spend as much time on the videos as I would have liked so far, and I’m not willing to risk trading so soon. I expect within a few weeks I’ll be shorting.

Reply
Ryan Smith
20 June 2013 at 10:49 pm | #
Hey Tracy,
Did it really cost 5500 to join the millionaire challenge? What was the application process like?

I have thought about applying. Any info is helpful

Reply
Tracy Coenen
20 June 2013 at 11:23 pm | #
I don’t remember exactly how much it cost, but it was around that amount. I don’t know what the regular application process is like. I have known Tim for a little while, so I just had one phone call and I was in.

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Ryan Smith
21 June 2013 at 6:52 pm | #
Does the challenge have weekly seminar calls and webinars or is it all on your own?

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Tracy Coenen
21 June 2013 at 8:01 pm | #
There are two weekly webinars, about 5 new videos per week, and then all archived videos and DVDs.

Reply
Tracy Coenen
21 June 2013 at 8:07 pm | #
Videos = short lessons usually 5-20 minutes, and generally on current stocks that Tim is watching and/or trading

DVDs = long videos of several hours that Tim sells, but are included in the price of the program (these are more in depth training pieces on the strategy he uses and the mechanics of it)

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Ryan Smith
21 June 2013 at 8:10 pm | #
Thank you for your answers

I really appreciate it!

So does his program have you start off picking the same stocks as Tim or are you on your own?

I’ve also been concerned about using Sure trader since it is not in the U.S.

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Tracy Coenen
21 June 2013 at 8:15 pm | #
The stocks you trade are completely up to you. Tim sends out watch lists so you know the stocks he has identified as potential trades. He also sends out alerts to tell you what he has traded.

You can follow what he’s doing and trade those same stocks, or you can find your own picks to trade. He teaches how to research and evaluate stocks, so you could certainly find your own picks.

And while Tim has the core strategy that he teaches, he also teaches a lot of technical stuff that you could use to develop other trading strategies.

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Tracy Coenen
21 June 2013 at 8:18 pm | #
And you don’t have to use Suretrader. Use whatever broker you like!

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Ryan Smith
21 June 2013 at 8:21 pm | #
Thank you

Reply
Ryan Smith
21 June 2013 at 8:22 pm | #
Last question, I promise:

I heard he only takes around a 100 students per year. Is that true?

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Tracy Coenen
22 June 2013 at 7:42 am | #
I don’t know.

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William Wise
11 July 2013 at 4:15 pm | #
Hey Tracy,

Have you started actively trading with Tim’s strategy yet? I was just accepted to the challenge and received all of Tim’s materials today. There seems to be little structure in terms of a starting point and where to turn when you do have questions. Just wondering how you may have been able to navigate those issues. If you could do it over again would you?

Thanks!

Reply
Tracy Coenen
11 July 2013 at 4:38 pm | #
It is a little confusing when you first start! Fear not.

1. Email me and I will send you a few documents that helped me when I started.
2. The best DVD to start with (to get an overall idea of the system) is Pennystocking Part Deux.
3. The next DVD to watch is Tim Fundamentals #2.
4. Watch ALL of the video lessons. Try to keep up on the daily ones Tim puts out. Also go back and watch all of the old ones. (If you email me, I can also give you links to some guides that lest the most helpful video lessons.)
5. Get in on the weekly webinars right away. You won’t understand what’s going on at first, and that’s okay. Just listen and you will catch on.

I will begin looking for shorts next week. So that will be my official entry into Tim’s strategy. I have been buying and selling long positions for the last couple of months using what I’ve learned from Tim. That is going well, and now I finally feel (almost) ready to start shorting. I don’t have big expectations to start. I am going to do very small positions just so I can get a feel for what I’m doing.

Reply
Fraud Files Forensic Accounting Blog » Getting Started in the Tim Sykes Millionaire Trading Challenge
17 July 2013 at 8:42 am | #
[...] this year I wrote about being a part of the Timothy Sykes Millionaire Trading Challenge. I signed up in March, and have been learning Tim’s core strategy (shorting penny stock pump [...]

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Dave Petersen
17 July 2013 at 4:26 pm | #
http://profit.ly/newsletter/TimChallenge

This is the results from all of the students including myself.

Reply
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