Timothy Sykes: Millionaire Trading Challenge

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:

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.

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Comments (101)

  • Faizal

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    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?

    Reply

  • Tracy Coenen

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    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).

    Reply

  • Chris Hatton

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    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!

    Reply

  • Tracy Coenen

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    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.

    Reply

  • David

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    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.

    Reply

  • Tracy Coenen

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    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.

    Reply

  • John Thomas

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    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

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    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

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    Hey Tracy,

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

    Reply

  • Tracy Coenen

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    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

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    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

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    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.

    Reply

  • Ryan Smith

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    Does the challenge have weekly seminar calls and webinars or is it all on your own?

    Reply

  • Tracy Coenen

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    There are two weekly webinars, about 5 new videos per week, and then all archived videos and DVDs.

    Reply

  • Tracy Coenen

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    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)

    Reply

  • Ryan Smith

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    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.

    Reply

  • Tracy Coenen

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    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.

    Reply

  • Tracy Coenen

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    And you don’t have to use Suretrader. Use whatever broker you like!

    Reply

  • Ryan Smith

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    Thank you :)

    Reply

  • Ryan Smith

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    Last question, I promise:

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

    Reply

  • Tracy Coenen

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    I don’t know. :)

    Reply

  • William Wise

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    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

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    It is a little confusing when you first start! Fear not.

    1. The best DVD to start with (to get an overall idea of the system) is Pennystocking Part Deux.
    2. The next DVD to watch is Tim Fundamentals #2.
    3. 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.)
    4. 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

  • Ryan McGinn

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    I have been interested in signing up, i got an email stating what commitment was required but it is hard as I work on a shift pattern basis! Therefore I would miss some of the webinars. I have started researching, Although I am confident I would succeed if I could give my full effort I just couldn’t give up my job! What would be your advice around this issue?

    Reply

  • James

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    Hey tracy, Im only 15 and have not been attending school for the past term, i am looking for a way to earn money… stocks have always interested me i actually bought 500 dollars worth when i was 11/12, my grandpa has many many of them and has traded since 1940′s, but i have recently heard about penny stocks… what do you think of trying to earn a living off pennystocks? thanks a lot. hope you can get back to me.

    Reply

  • Tracy Coenen

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    There are people who do earn a living off trading penny stocks. However, it takes a lot of time and dedication to learn how to do it right. As with any stock trading, it’s risky, especially if you’re not prepared. Be very careful!

    Reply

  • Dusty

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    I’m hoping that someone can review the Timothy Sykes newsletter to see if it’s worth it or not?? ……….I think it’s $50.00 a month or $100 a month depending upon the option you choose, but I am curious to hear about results from others…I mean, have they made real actual money with it?

    Reply

  • sherry

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    Hi Tracy,
    i just signed up for this programme.
    Read thru this whole forum and inspired by you all.
    Howz things looking with what u learned?

    Sherry

    Reply

  • Joseph Ngu

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    I just finished the interview and about to sign up the challenge. Truly deeply madly want this to work for me!
    Appreciate to see more of your sharing, Tracy.

    Reply

  • Fredy

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    Hi Tracy
    Have you made any money after becoming a Challenge student?
    How much did you open your account with?
    You can email me if you want Fredyb86@gmail.com
    I’m currently a Tim alerts subscriber.

    Reply

  • Tracy Coenen

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    Fredy – I was actually doing quite well and was up about 18% until a couple of weeks ago. I made a really poor decision and violated all the rules I learned, which wiped out my profits. I am happy to say that I have begun to rebuild my profits.

    Reply

  • Freddy

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    Hi Tracy,
    Are you getting paid or compensated in any way or form for your involvement with Timonth Skyes?

    Reply

  • Tracy Coenen

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    If you mean am I being paid for posting my comments on the program on this blog… no.

    Reply

  • Richard

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    Hi Tracy,

    Thanks for the information, I am just done with interview for this program.

    How is rebuild going so far? Got back to 18% or more?

    Reply

  • Tracy Coenen

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    Not yet, Richard, but I am working on it! I can’t rebuild 6 months of profits in only 1 month! :)

    Reply

  • Joel

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    Do you think $5,000 is enough to start investing with?

    Reply

  • Tracy Coenen

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    Yes!!!

    Reply

  • Jay

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    I tried Tim’s subscription service back in 2009ish.

    It was his alert service where he would update a web page live (he said) every time he entered a trade.

    I wrote a program that would scan that page every 15 seconds and as soon as it saw the trade, it would take it live in my brokerage account.

    The trade entry itself was under 1/2 second which means that the worse case scenario was that I would be late 15.5 seconds from the time the trade was posted on the web site and the position was established.

    Even at that speed, the stock would be already at it’s peak value by the time that the trade got executed. (And remember, this was a real trading account with real money and a small testing position. Not simulation)

    It almost felt like I was the last one to know about it, although clearly, I was not since most subscribers were still waiting for their e-mails/IMs to show up to tell them about the trade.

    So seeing that, I concluded that there is no way for me as a subscriber to make any money off his ‘picks’ and I cancelled my subscription.

    Reply

  • Tracy Coenen

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    Jay – What you’re talking about is NOT the trading challenge. As you mention, it is simply his trade alerts. Many times you can’t get in fast enough once you see the alert, but that’s not different than ANY alert service out there. The person alerting does so, and the market keeps moving until you see the alert and make a decision.

    Reply

  • Joel

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    Thanks for the feedback. Also, how much does his challenge cost per month?

    Reply

  • Samuel

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    Hi Tracy Coenen,

    In your experience as fraud investigator, do you have any reference on https://weeklyoptionsprofits.com ?

    They sale material of “weekly options trading system” training course by Jack Carter , but I want to now if it is real or scam.

    Thanks for the comments you can share in that regard.

    Reply

  • Tracy Coenen

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    I have never looked at that one. Sorry.

    Reply

  • tyler

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    Hi Tracy, have you mad your money back after signing up to tim’s challenge?

    Reply

  • Tracy Coenen

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    What do you mean by “made my money back”?

    Reply

  • phil

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    Tracy,
    I just joined Tim challenge, I would appreciate if you could assist me in my venture..
    Ty
    Phil

    Reply

  • Bronson Walker

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    Hi Tracy,
    I just applied for the challenge and have started getting some emails. I’m a 25 year old finance grad working as an English teacher in Ulsan, SK. I want to learn to trade on my own, not work as an invest. banker or something like that. This program seems very intriguing and Tim Sykes obviously knows what’s up if he’s done it himself time and time again. I want to learn but I’m skeptical of buying online subscriptions of this sort. I don’t need the trading alerts and tips. I want to learn the fundamentals of a strategy like this and pick my own. Do you have any advice?

    Best,
    Bronson

    Reply

  • Perno

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    I think he’s asking if you’ve made your $5,500 initial investment back on the program, whether you had to pay it or not. Thank you for your insight.

    Reply

  • travis

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    Bronson,
    I was a finance major, too! I’m thinking about what I’m going to do as well. I have a LTBH mentality, but I do short and use options quite a bit. I get what Tim’s program is. Know this, being a finance grad, probably will not be of much use with Tim’s methods. There is no fundamental analysis. That means intellect-wise, this is easier. In fact, you are only playing off of people’s fear and greed. BUT, in reality I think actually succeeding must be very difficult. Far more difficult than scrutinizing a company from the bottom up, deciding if it has merit and then buying it and holding it. It’s easy to look back at a chart and recognize a pattern. Humans love to find patterns. It’s in our nature. Even back when we were hunter gathers we found patterns in the stars and seasons, the moon, etc. But while you’re in the thick of it, you can only try to guess at the outcome. You don’t have the luxury of hindsight until it’s done. You have to be great at reading people’s emotions and realizing that since everyone knows the same patterns that the human behind the computer will be predictable. Unfortunately, we aren’t very predictable IMO.

    I’m in Ilsan, not very close to Ulsan, but we’re in the same country anyway. Feel free to contact me. I’d really like to pick your brain before I make my decision.

    Cheers,
    Travis
    cthwgw1971@gmail.com

    Reply

  • Tracy

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    Hi Tracy,

    Can you please provide an update on your thoughts of the trading challenge? Are you happy with the results? What your learning? Would you recommend it’s worth the money for the classes?

    Would love to hear your thoughts first hand!

    Reply

  • Mark

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    I joined and soon realized it’s nothing more than him using his member base to pump stocks which he has already taken positions in, then dumping them. The SEC will be on this guy at some point. Sykes also makes it difficult to cancel. They banged my card a few times after i thought i was cancelled.

    Reply

  • Tracy Coenen

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    No, Mark it is not a tool to pump stocks and then dump them. They don’t even “bang your card” in the trading challenge. It is a one time fee. If you’re talking about one of the subscription services, you’re still wrong.

    Reply

  • Andi

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    Hi Tracy,

    I am considering taking the Challenge, what is the difference with Penny Stocking Silver (PSS)? Seems both the Challenge and the PSS have daily chatroom, daily watchlist, trade alerts, weekly video lessons, and the 1300+ video library. If I were just subscribe and try PSS, would that cover significant material/ method Tim is using? I do not want to complicate my technical trading with too much information anyway. I learned that the Challenge includes 2-3 times a week of 90-minute webinar, is this much different than PSS’ daily chatroom? The Challenge also include contact number for Tim and Michael, which is nice to have.

    Reply

  • kim chu

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    Hi Tracy,

    Can I cancel my subscription if I do not like it? I am in pennystocking silver $99.95/mo.

    Reply

  • Tracy Coenen

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    Kim – I don’t know. i don’t work for Tim.

    Reply

  • Tracy Coenen

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    Andi – The challenge includes a ton of the DVD sets and the 2 weekly webinars. The webinars are very different from the chatroom. So yes, you get much, much more with the challenge, which is why it costs so much more.

    Reply

  • DFLO

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    Nice Blog Tracy. Interesting.

    Reply

  • DFLO

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    BTW – I’m also an Accountant in Indianapolis that never got to practice – LOL. I got shifted into I.T. COnsulting by my Eemployer back in ’92 – have owned my own I.T. company since ’96 here in Indy. Thinking about doing the challenge since I spend som much time at my office in front of multiple monitors anyway.

    Reply

  • DFLO

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    Wow – sorry for the typos – we’re busy today and I am typing way too fast.

    Reply

  • Sav

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    Tracy, I’m looking into joining Tim’s millionaire challenge, however i have a 9-5 type job and would not be able to trade during the work day. I’d realistically only be able to set limit orders after-hours. Do you believe Tim’s strategy will work by making trading decisions before and after hours?

    Reply

  • Tracy Coenen

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    Sav – I don’t think you’d be successful doing that. These low priced stocks tend to move very quickly, and if you’re not in front of your computer when you have an open position, you have a huge chance of losing money. I think you’d need to have some time available during market hours.

    For example, I typically trade for the first 30 to 60 minutes of the day before I stop and do my other work. If I have an open position, I continue to watch the chart throughout the day as I am working.

    Only using limit orders would seem to be very, very difficult. However, I would talk to Doug in Tim’s office. Tell him your situation and see what he thinks you could do.

    Reply

  • Timmer

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    Ahoy Tracy !!

    Nice Blog! Good Advice!

    Thanks for being such a supportive person.

    Reply

  • fahim

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    Hi Tracy

    This is an interesting blog you have set with good advice/points being made. Quick question I am new to investing and considering Tim’s program, however I ma based in London and I’m aware that Tim’s service/alerts are for US based stocks- considering time/location differences etc. how helpful do you think his program can be to me? Thanks for any advice

    Reply

  • Chris

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    Hi Tracy,

    So what is your bottom line on the challenge? Have you made money since you have been doing this for so many months? What is your PnL? If you have NOT been that successful can you elaborate why? I plan on signing up for the Challenges as i plan to be Tim’s next millionaire(you can tell him i said that). I really feel i have what it takes to pick winners a good majority of the time. By using Tim’s short sell strategy with Interactive Brokers (You’ll need $25k to open acct with them but they are way better than SureTrade). i should be able to short the share i need so that will not be much of a problem. I plan to focus on the pump and not worry about the dump too much(maybe just a little). ;-)

    Cheers.

    Reply

  • Tracy Coenen

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    Fahim – I have no idea how things work for someone in London. Sorry.

    Reply

  • Tracy Coenen

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    Chris – I am in the black for trading, but I have not yet recovered all of my costs of the program. I did very well the first 6 months, then ignored all the rules and lost all my profits. I am back to consistent profitability, and I expect to maintain that if I keep following the rules. If I break the rules again, I will lose.

    Reply

  • Chris

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    Thanks for sharing but i don’t understand why you would stray from his strategy after 6 months. That does not make sense to me at all. Sounds like you still need more education/reinforcement here. Its too bad TS challenge is not more structured because if it was more systematic more people would be more successful. We all learn to add/subtract before we learn to multiply/divide.

    You should try to read everything there is on the internet about trading small and micro caps. See http://www.coolcatreport.com.

    Its the real deal. Its almost always the #1 newsletter as ranked by Hulbert Finanical Digest (part of MarketWatch) who ranks all newsletters every single year based on % annual returns. His small cap screening strategy really helped me a lot when i casually started a year ago but i need to diversify my strategy a bit by learning to short stocks so that’s where i think TS can help me the most. I run weekly screens and focus on stocks building a lot of momentum that week and prepare for the uptrend by planning my entry/exits as early as possible based on recent price action and how the stock historically trades. Follow all the news on these too for possible breakouts, etc. Momentum is a big part of the game so you have to master how to asses it. This is huge.

    http://www.coolcatreport.com/index.jsp

    I run screens then I make sure I create tons of folders on companies that i have a high degree of interest in. I do a lot of homework all the time. This is what it takes if you want to win at first, in addition to getting lucky some times.

    Once you get really good you won’t really need to do as much research as it will be second nature almost. This will take upwards of a year if you are at it all days, every day. If you want o move up the learning curve ASAP like everyone else then do your homework and do it well.

    Trust me if you do your homework you will be rewarded in due time, and don’t stray from your rules, its imperative not to be emotional. You should approach every trade with the intention that you will have another 1000 trades to do after your current ones so that way you don’t bet too high.

    A good rule to follow is based on your %win trades minus %loss trades. If you win 60% of trades and lose 40% then you should not be betting more then 20% of your current profits. You need conservative strategies at first until you master the art of trading. Trading is a lot like practicing medicine, its part science and partly art, and you need to master both to be good. The people who are most determined to win will usually prevail in this game.

    I am sure TS is a nice guy regardless of what people say. He is just trying to run a business and make money like everyone else in this world so who really cares if he’s become a little flamboyant. Look at all the crappy little companies that are lying to investors to get them to invest in them. Their losses will be our gains. The reverse of what you here from Wall St. CNBC, etc.

    His rebel attitude toward Wall St. is so entertaining because there are so many truths in what he says. And of course nobody on Wall St. would say those things.

    Can’t wait to get started!

    Sorry if i rambled….

    Reply

  • DFLO

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    Tracy – Instead of doing the full-blown Trading Challenge, I am thinking about doing the silver plan that includes:

    Daily Chatroom Access

    Daily 5-10 Stock Watchlist

    Realtime Email/SMS Trade Alerts

    Realtime ProfiDing Trade Alerts

    1400+ Video Lesson Library

    Weekly Video Lessons

    Start by watchng the videos you recommended, and learning the system. Then just follow the rules closely as you recommended.

    I have traded stocks and options for years with accounts at Schwab and Scottrade, but have not shorted stocks – although I understand how it works.

    Do you think this will be succesful instead of doing the full Trader Challenge?

    Thanks

    Reply

  • Robert

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    Thank you Tracy for the time put into this blog. I will be signing up today for the challenge. Yes the 5500 for the 1year training is steep but not as bad As losing 4k in two weeks trying to do it on my own. So many mistakes I could’ve avoided had I done the challenge. Today I’m up 200 following one of Tims watchlist its hard to think that after paying for the 1yr I’ll be down almost 10k but positive about what’s to come. Thank you for the information.

    Reply

  • Tracy Coenen

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    Everyone breaks the rules sometimes. I took too big a position in a stock that was too volatile, and I paid for it! But that is not uncommon, and it could have been worse.

    Reply

  • El

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    Hi Tracy,
    I guess the reason I’m confused is that I’ve been reading MULTIPLE instances of experts sayings it’s almost impossible to short penny stocks. So, has Tim figured out a way around this, or what?
    Thanks!
    El

    Reply

  • Tracy Coenen

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    No, it’s not impossible. You just have to have an account with a broker who allows it.

    Reply

  • El

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    Thanks for your response!

    Reply

  • John

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    Tracy, good information and opinion you have provided here! I’m intrigued to give this a try.

    One question I have before jumping in: that Suretrade brokerage makes me nervous for several reasons. Can you recommmend some examples of brokerages Tim’s students have been using to short penny stocks with success? If it matters, I would be starting with a $4000-5000 account balance.

    Thanks!

    Reply

  • John

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    I would stay clear of shorting penny stocks. It is VERY difficult to borrow these shares even from sure trade. I called them and asked them and they said it all depends on the stock you want to short. If you get caught not being able to borrow the stock you will get screwed. It is incredibly difficult to short penny stocks and the regulations have changed a lot since TS claimed he made all his money. There are plenty of websites that explain how to buy and short penny stocks. I would suggest you see them before you lose all your $$.

    Reply

  • Kat

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    Hi Tracy,
    Thanks for constructing this site, the info here is helping with my decision on the challenge. I just completed the challenge phone interview and am still on the fence at this point.
    Besides the $5500.00 enrollment fee, could you share if you also purchased Tim’s software “stocks to trade platform” $1000.00 and “data quotes” $120.00 per month? If so, is it neccessary to purchase in the beginning of the challenge, or can you wait?
    Thanks for your time,
    Kat

    Reply

  • Tracy Coenen

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    John – You’re confused and therefore spreading misinformation. Yes, penny stocks can be hard to borrow. But if you can’t borrow them, you’re not “caught.” You are simply unable to open a position and therefore have no trade. You don’t lose any money. You simply have done nothing.

    Reply

  • Tracy Coenen

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    Kat – It is not necessary to get Stocks to Trade if you have some other platform that gives you Level 2 quotes. I use Thinkorswim, which I get for free.

    Reply

  • Gman

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    Tracey – Im wondering which online brokerage you use. I heard Suretrader is good and they let you short stocks under $2 which is rare for a brokerage firm. But any advise would be helpful?

    Reply

  • Tracy Coenen

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    I don’t have a recommendation, but a lot of people recommend Interactive Brokers.

    Reply

  • dave

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    Tracy, im sorry you got scammed. its coming up on a year and you indeed are not yielding any gains. I suggest you stop throwing away your money and time(which I feel is more valuable) and get a job.

    Reply

  • Tracy Coenen

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    Dave – You’re confused. I did not get scammed, and I indeed have profited. I am a full-time forensic accountant and a part-time trader. I have learned a lot over the last 10 months. When I have followed the rules, I have profited. When I have broken the rules, I have lost. I am very happy with the program so far, and therefore am re-upping for another year.

    Reply

  • Tony

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    Tracy,

    What trading platform do you use?

    Reply

  • Tracy Coenen

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    I use thinkorswim.

    Reply

  • JT

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    When did you actually start trading and what hours do you usually trade?
    Do you go on profit.ly and provide your profit and loss details?
    How much have you profited minus tims program?

    Reply

  • B Darcy

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    Hi Tracy. I have been on the fence regarding to maybe try the challenge. Honestly, I don’t want to short stocks at the moment. So my main question is… is the challenge and Tim’s strategy only involve shorting penny stocks? Is there any education to spot and trade going long in his system?

    I been following his profit.ly site under a free account and I notice he makes both long and short trades but every forum or website, the system is described as somewhat of a only shorting stocks.

    Could you clarify?

    Reply

  • Tracy Coenen

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    JT – I started trading in April, and usually trade between 7:30 and 9:30 am. Yes I’m on profitly, and I am just slightly in the black. I would love to have greater profits, but I have had losses when I broke the rules. Totally my fault.

    Reply

  • Tracy Coenen

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    B Darcy – No, it is not only shorting. Tim also buys earnings winners and contracts winners, and that is how I have been trading since I started in the program.

    Reply

  • dflo

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    thanks

    Reply

  • Ufu

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    Tracy, Thanks for all the info and time you put into answering the same questions over and over. I read through the whole blog and found the answers I was looking for. Very much appreciated. Thanks again. Cheers and success….

    Reply

  • Sam

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    Tracy, thanks for sharing your experience…and for answering to all the questions!! so, would you say that is it possible for someone with a full time job (but flexible hours) to take part to Tim’s challenge? and if so…how long is the challenge for?!…until i make a million?
    thanks :)

    Reply

  • Tracy Coenen

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    Yes, you can do it part time as long as you have some time that you can dedicate to watching the market. You need to be able to take a position, watch the chart, and then get out. So for example, I trade for about an hour in the morning before I start my other work.

    Reply

  • Angel

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    Hi Tracy, Do you have to pay the fee or tuition ($5,500) Every year you are on the challenge or is it a one time fee?

    Reply

  • Tracy Coenen

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    Angel – That is the fee for your first year. After that, you can renew for an additional year at a time at a far reduced cost (since they are not providing you with the DVDs and presumably you’ve already gotten the benefit of the old videos). So the fee for years 2 and beyond are primarily for the new content, even though you still have access to the old content.

    Reply

  • Angel

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    Thank you Tracy, One last question. So you get Penny Stocking part Deux with the Millionaire Challenge as well as a bunch of other DVDs? Thanks again for replying…

    Reply

  • Tracy Coenen

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    Angel – You get a bunch of DVDs with the challenge, but I don’t know which ones they are currently sending.

    Reply

  • Tay Drader

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    I just don’t understand why he doesn’t just have a hedge fund. Did you get a discount on your first year because you know him? I just can’t see spending so much money upfront and he constantly jacks up the price to “weed people out”

    Reply

  • Tracy Coenen

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    Tay Drader (LOL) – Tim doesn’t have a hedge fund because his strategy is not scalable to the hedge fund level. It is really a strategy only to be used by individual traders. I don’t know whether the fee I paid was the same as others or not. Honestly, the fee is worth it when you look at how many DVDs you get plus the entire library of video lessons. If you’re serious about trading, it definitely is worthwhile.

    Reply

  • Tay Drader

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    Thanks. What is most intriguing to me is that money can be made on both long and short positions. I would love to learn how to short, especially as stocks sitting at all time highs, but I know it is risky. To have a coach would be helpful to not get too emotional.

    Reply

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