Timothy Sykes is a fantastically successful blogger, penny stock trader, and educator. He makes a living by teaching people how to recognize “pump and dump” schemes by penny stock promoters… and then short those stocks for a profit. They make money when the price of the stock they’ve shorted goes down… which is inevitable if you can identify a stock that is all hype and no substance.
What is a pump & dump? Essentially the promoters of a virtually worthless stock (worthless, because the company is a sham of some sort) do mass mailings of marketing materials. This is the pump. They hype a company with false and misleading information, hoping to interest people in buying the stock (taking long positions). As those people start buying up shares, the price of the stock rises rapidly. While this is happening, people who previously held the stock start selling (at an inflated price, thanks to the all the buying activity generated by their hype). This is the dump. The people selling make a ton of money on their stock. Continue reading
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. Continue reading
Penny stock trader, author, entrepreneur Timothy Sykes (aka Timmay) has put on his little detective hat and found a fraud in progress. Being promoted by none other than CNBC “reporter” Sri Jegarajah. Timmay makes an excellent point…. Networks like CNBC aren’t about serious news or reporting. They’re about entertainment and advertising dollars.
And by not being skeptical about the stories they’re “reporting,” they are doing a huge disservice to all those who think that they’re credible just because they’re called CNBC. But the CNBC guy made a huge mistake… he somehow took the words of a paid promoter and thought that this was credible research.
Here’s a snippet of what Timmay had to say… great research… and apparently not all that hard for anyone who bothered to look. Continue reading
A few months ago I agreed to read and review An American Hedge Fund by Timothy Sykes. I’ve been a bit remiss in writing the review, but am finally ready to share my thoughts. The best way I can describe Tim is that he’s a character. He is a young ambitious guy, but he’s got some over-the-top ideas that I hope don’t do him more harm than good.
His creativity in regard to the stock market and growing assets is fantastic. He wrote his book to give ordinary people a peek into the life of a day trader. Tim made many mistakes while he was growing his $12k+ Bar Mitzvah money into over $1.65 million. (Incidentally, he’s working on repeating that feat just to prove that he didn’t just get lucky.) And he’s not hiding those mistakes. He’s telling the world about them.
I liked the book. I really did. I think it could have been even better with a stronger editor, though. The story is inspiring, but at the same time Tim spares no criticism of himself and the mistakes he made. What I think the book lacked is a bit of the “how-to” that I expected from it. I really enjoyed Tim’s story, and feel that adding some practical tips along with his story would have been a big benefit to the book. Continue reading
I have been remiss in my duties…. I promised Timothy Sykes that I’d review his book, An American Hedge Fund on FRAUDfiles. And I still haven’t gotten around to it, thanks to an upcoming move of my office and a dozen other work-related things that have needed my urgent attention.
I promise to do a real review soon, but for now, this is it. I read the book a couple of months ago, and it was fantastic. Timothy basically took $12,000 from his bar mitzvah and turned it into over a milllion dollars in three years. He started his own hedge fund and had lots of ups and downs.
But people working within the hedge fund industry have many regulations about what they can say about the industry. So in order to really be able to talk freely about the industry, Timothy has closed his hedge fund and is now promoting his book.
My full review of the book soon…