The Huffington Post ran a really nice story about the one and only Timothy Sykes today. Tim just rolled out a new website, which is kind of a portal for everything related to stock trading. Of course he peddles his book and DVD set there, but he also details his stock trades and teaches others his methods.
Tim is notorious for being arrogant and flamboyant. I see it mostly differently: He has a total passion for what he does and stands up for what he believes in. He is trying to teach others about his craft (shorting penny stocks) and although some may disagree with that as a trading strategy that can work for the common person… I give him kudos for believing in the strategy and teaching others about it accordingly.
And… you’ve got to admit that Tim Sykes makes for some interesting reading. Much of what he does has a ton of entertainment value. (Who would have though that someone in the financial industry could actually have a personality and a flair for entertainment?) I cringe from time to time and have offered some big-sisterly advice, but Tim will have none of it. He’s got a vision and he’s running with it!
Sykes, now 27 years old, wants his full $1.65 million back. He started “TIM” (Transparent Investment Management), with the goal of repeating his original feat of turning $12,415 into millions. But now he is bringing his fans along the way with a detailed step-by-step blog. On May 1 Sykes debuted his new site – www.timothysykes.com – which is much more than a blog. He has added everything from TIMtv and TIMradio to even a talking photo gallery! In his first interview since the launch of the site, I caught up with the awesome, young and energized investor just before the new site launched…
You say: “The digital world has created a new frontier where it’s every man for himself – and there are few rules.” How well do you fit into the hedge fund and investing business. What do your colleagues (whom I assume are much older than you) think of Tim Sykes?
I don’t fit in, I’m not a value investor, I don’t like trading any of the most popular plays–big technology stocks, currencies or commodities–nor have I ever gotten comfortable with leverage. I am a short selling penny stock trader, ironically a combination of the three most derided niches in all of finance (maybe that’s why they work so well together, as in negative x negative = positive.)
My colleagues think I’m a self-promoting fraud, definitely due to my big mouth and all the press I’ve received, much of it inaccurate. That’s why I’m so into blogging all the wonderful details of my strategy and answering all questions – because I have nothing whatsoever to hide. I’ll never stop promoting because this is a great sport, which, thanks to all the snooty, narrow-minded and boring people in finance, isn’t as popular or respected as it should be.
On fraud and corruption:
You wrote: “If we win, we’re richer, and if we lose, we’re wiser.” What was your biggest mistake and what did you learn from it?
So true. I personally lost over $300,000 when I got away from my core trading strategy and tried becoming one of the cool kids by investing for the long term. I learned to never trust any company or CEO, there’s a lot more corruption than you ever imagined, and to stick to what works for you, whether or not it’s the most popular route. This loss was incredibly painful–as it was my first and only major one–but it’s made me an infinitely better teacher, wiser and more conservative.