My guest is Timothy sites the multi-millionaire stock
trader and entrepreneur. Timothy invested his $12,000 bat
mitvah money, which is about $11,500 more than I got In
PENNY STOCKS making his first million
in his college dorm.
In addition to coaching students online and in seminars
his high roller lifestyle on social media
has attracted hundreds of thousands of followers.
Less than a year ago, he kicked off his nonprofit the Timothy
Sykes foundation.
Tell me about your upbringing
You know I'm from a small town orange Connecticut.
We weren't rich we weren't poor were just kind of middle class
Did you have early business instincts?
Oh yeah, I mean, I was a tennis player.
I really wanted to go pro, but I actually
got injured, I had surgery on my arm
and that's what led me to get into stock trading.
My dad calls it the million dollar injury
You could have done anything.
Lawyer doctor.
I mean, this was in 1999, the stock market was going crazy.
My parents in their wisdom gave me
control of the bar-mitzvah money.
They thought I would lose it all they
thought it would be a good lesson to me.
Like tough love you know let the kid learn
the value of a dollar.
And instead by the end of senior year of high school,
I turned into over 100,000
and then by the end of freshman year, I was at nearly a million.
So this was a high school senior year
of high school. I was already into college early because of tennis
but I had the injury.
So I couldn't play tennis.
You've been called perhaps the most famous penny stock
trader in the country.
First, what is a penny stock.
So these are low price stocks stocks
trading under $5 a share.
A lot of very sketchy companies, a
lot of just very developmental companies
they might have one or two products.
There may it's a gamble of a penny.
Liquid metal.
They have this new age plastic technology
that they signed a deal with Apple.
And we're still waiting three years
after the agreement to see what Apple is using
with this new age plastic.
So it's a $0.20 or $0.15 a share of stock.
Why didn't you trade in Minnesota Mining why
didn't you trade American Airlines.
Why penny stocks?
So I actually did try but my account wasn't going anywhere.
I was at the time trading Netscape and Yahoo.
Which were two of the biggest companies in the country
go from 12,100 to 11,900.
So I gravitated towards these lower price
stocks, which you know no one's talking about on CNBC.
But they're very volatile.
And my account grew very quickly,
why do you look them up.
I always look at the biggest percent
gainers every single day or whatever stock is hot.
The way that I find liquid metal they had a deal with Apple.
It was announced in an SEC filing
and the message board started talking about it.
So there's a group of traders that get these you know,
small companies riled up.
Where do I look up penny stocks.
I see in the Wall Street Journal just because percent gainers.
Every financial web site has it.
They're just not talked about on the major media,
which is why I think there's an opportunity there. What's
the secret of you're trading
not believing a word that they say
and understanding that most of them will fail.
But at the same time understanding
that momentum can push them up dramatically
for a few hours or days.
The Wolf of Wall Street.
Well, you know he was actually the one pumping and dumping.
I'm just trying to piggyback moves that are already
existing I'm trying to predict based on patterns
in historical price action.
I'm not a broker I'm not a financial advisor.
I just try and show what patterns are working.
Do they have a baby impression.
Yeah, I mean, most people lose money
on trading in penny stocks.
So there's a very negative stigma attached to them.
But if you actually look at why they're moving
you know a lot of these penny stocks drop 50%
and day because of companies like the Wolf of Wall Street.
They're promoting them when they start promoting them
they fall out of bed.
But most people don't see that. They
just see the stock drop.
No news and they're like, oh penny stocks are random.
If you actually look at the promotions.
You can see when the promotional mailers or the telemarketing
phone calls stop.
So it's very logical and predictable.
People just aren't looking at the right things.
Most people want to look at revenues, profits
earnings per share.
Those indicators don't matter with Penny stocks.
Is there a thing this company that was a penny stock.
Yeah, I mean true religion jeans was a penny stock really.
They were actually I just got a pair and you got a pair.
So they were all pump located in Vancouver
and the jeans actually took off.
So it doesn't happen very often where a penny stock actually
turns into something real.
But there's one example right there. If
it doesn't happen very often you've made all the money.
So I actually mainly short sell penny stocks,
which sounds crazy.
You bet on stocks going lower because they're only
like you know $1 or $2 a share.
But if a company is actually fundamentally worthless then
when it's out $1 or $2 a share.
It drops you know 90% And that's how I collect my money.
So you are rooting against the one you are interested in.
This is where I don't necessarily root for anybody.
I look at historical statistics.
And I say logically, this company
will feel like liquid metal.
They announced their deal with Apple three years ago.
And the stock went from $0.12 to over $2 a share
nearly $2 share.
I bought it at 55 sold it to $0.80.
I made my you know 50% return in a few hours.
And I was done with it since then, I've
been shorting it a lot because the deal hasn't materialized
in the stock has dropped 90% Any stock that will go from $0.15
to $100 is not quite that high.
But there are stocks that go up.
There's a famous company called sponge tech,
which I was Warning about it went from a third of a penny up to $0.30
shares.
So 90 times their money in a few months,
they were a big sponsor or an advertiser
open in Madison Square Garden they eventually
defaulted on their advertising deals.
And I was Warning against it because they had 19
separate stock promoters pumping the stock up
and everyone believed in those they had sponges with soap
already in it.
OK So it's a cool product.
But they have the ticker on the sponge.
So what are they selling.
Are they really selling the sponges or
are they selling their stock.
And in reality, they were selling their stock. There were 500
million shares that the insiders theoretically
sold do it every day.
Yeah, I mean, I look every day.
I'm not always trading every day. Today
I haven't made a trade because penny stocks
you have to wait for something that's hot and moving. I don't
believe in these stocks.
Most of them.
They don't trade very actively.
So I'm not interested in illiquid penny stocks.
So you have a get tips on a bigger stock.
I mean, I've tried them.
I just haven't grown my account that way the way
that I've grown my account.
Now my top students have grown their accounts
is trading active penny stocks because they're so volatile.
You know my top student has turned 1,500. into
Now 2.7 million in four years.
You can't do that with big story students.
You know they hear about my success.
I show everything online through social media.
I share all my Pick's I share all my wish lists.
But I have a lot of free stuff.
I have 400 free videos on YouTube.
So they can see that I'm
actually real.
So I give away things.
I want people to learn.
You know the reason why I got into teaching
is because there is so much misinformation out there.
People don't even think that you can actually
short sell penny stocks.
People are like, oh, that's illegal.
No, it's not legal you just have to find a broker that
has shares to short and a lot of brokers
because they don't have shares to shore just made
up the lie that you can't short sell penny stocks.
So I hate misinformation.
Do you blame your image by saying,
let's say you meet a homeless guy on the street
and offer him the choice of a bottle of Jack
Daniels or a green drink.
He's going to take to Jack Daniels.
So what I do is show pictures.
I show my mansion
I used to show my trips my model girlfriend and my life.
They want.
The Jack Daniels but inside I teach them
the rules
I'm on a mission to take bums off the street
and put them in Armani shoes.
That's pretty much true.
Why are you driven by that?
Because I see what education can do.
I see you know in the entire world of trading
and Stop Trading. and financial trading
there aren't that many self-made millionaires
who show every trade.
I show I would trade my students show every trade,
but to get there, you need to be inspired to study.
You don't get to millionaire status
without studying you might have a few lucky picks here
or there.
But to become a actual millionaire from a few thousand dollars
I mean, this is quite an incredible feat.
The way to do it is study in spreadsheets
and more spreadsheets.
It's worked its work and you don't
want to do that until you see what you can get out of it.
So a lot of people who have 1,000 5,000 $20,000
to their name.
They're working the 9 to 5 jobs.
That's not going to get them rich ever.
And they're watching CNBC they're diversifying into g.e.
and IBM and they're turning 5,000 to 6,000
over the course of the year.
You have to try and take weird strategies like mine you
alternative strategies to try and grow it.
And that's what I've done.
What's your assessment of the market now.
I mean, it's a guessing game as it always
is I stay away from the overall market.
I think that they key the individual investor should
be using is looking at specific stocks
trade them like a sniper when there is an advantage when
there's no advantage.
Don't trade.
You don't have to be right all the time.
You don't have to know where the market is going all the time.
Too many people trade like a mutual fund and
they think that they have to try and make 20% per year.
I'm in this to make exponential returns.
And you know with that, you have to be
very specific and deliberate with your trades.
You call it gambling research gambling.
And again, the odds are on my side.
I win roughly 74% of the time.
You don't find that with anywhere else.
You were your first big throw and trading freshman
year in college.
I bought this company.
They were a penny stock and they said
they were going to be on TV showcasing their new technology
thats back in 2000.
Cell phone technology wasn't very good.
You had fuzziness and they had this technology
that could get rid of the fuzziness
and they were going to be on. I don't
know if 743 CNBC or CNN.
Yes, something over the TV airs.
It was I don't remember the ticker symbol was ICO.
And I bought it.
I invested nearly 3/4 of my net worth as a freshman.
And this was nearly $250,000 and I
was you know I'd already made some money.
But they were on TV that weekend the next Monday the stock
kept gapping up and you couldn't pretty.
You know there's preorders pre-market orders.
Now So back then, there was no pre-market trading.
Was watching the stock go up on.
I'm trying to click sell nothing's getting taken.
Right when the market opens I put my Sellers orders
in for like three minutes. There's
nothing getting executed because it just keeps going up.
I finally get my cell order.
And I made a $100,000 in one day.
I ran around my dorm room just screaming
like this was crazy to me.
And I took my whole dorm out to dinner.
It was a beautiful moment. Wow
any goals? more millionaires many more millionaires
and many more people to help my charity.
Great pleasure meeting you.
Thanks for having me.
You're a special guy.
I want to thank my guest Timothy Sykes if you want more information
to these sites.
www.timothsykes.com