The truth about Timothy Sykes and whay I am (not) "bashing" him

First and foremost I am not bashing Tim. 

I was only speaking the truth as I am speaking now in this blog. It was just a very normal conversation between both of us, on Dec 7th.2015 by and through twitter time line. He has his opinion and  I have mine regarding the possibilities and the chances for a regular novice retail trader with $5,000 acct to become a successful trader, or maybe even a millionaire LOL ( I still  laugh at this ). We both have own beliefs and we exchanged our thoughts. From "some reason" he disagreed with my opinion and  he turned to be pretty ugly, publicly insulting me for what I believe in. It went on and on , mostly I was asking him to  show to the public a real brokerage acct statements of  $5,000 start up acct that was turned into $1,000,000 or even only $100,000 without any refills along the way.  I am not accepting profit.ly as any proof because I have my suspicions on its validity for which I will write in near future. 
Click here to see why i think profit.ly may be a pure scam created to gain more subscribers for Sykes.
He blocked me from following his twitter feed, and he has all the right to do so. I sincerely did not expect such behaviour from him , since I always thought of him that he was a real gentleman. Well, I guess I was wrong. 

First, think about it: why would he block me? If I was just total nuisance, and speaking something that make no sense, and if he was able to provide to the public a true brokerage acct statements showing growth from $5,000 to $1,000,000 without any refills along the way,  he would not care. He would respond like a real gentleman does, provide the $5000 turnes into $1,000,000 , go on with his business, ignore my "stupidity" and would not need to insult me in front of the twitter audience. But there is something that is bigger then that. Something that maybe endangers his fame and his income made from his subscribers and his future subscribers growing from his blind followers.  That "something" is  revealing the truth about Timothy Sykes, that probably many victims are ashamed and embarrassed  to reveal it. Just like a rape victim would rather not talk publicly about the survived nightmare.

I know of Tim since the first time he appeared publicly and I was his true fan. I did admire him for his cleverness and brilliancy.  He is extremely smart and intelligent guy. Unfortunately that will not help you to become millionaire with $5,000 trading acct . On contrary,  it helped him to become a millionaire and he will make more millions of off you : his faithful subscriber. Later in this blog you will see the true numbers, of YOUR DONATIONS. 

 I have to admit that at that time, more then 15 years ago I was buying / investing / in pumps and dumps with my $5,000 acct. Of course I was losing. blowing acct after acct, my own hard earned  money being taken for a ride by the newsletters, the pump and dump scheme artist. .It was Tim who actually opened my eyes about taking the opposite side: to short those pumps. He did in fact make $1,000,000 with $12,000.00 acct within several years since he was in college and that is apparently documented as he publicly stated in the media. As he  said he field income tax on actual earned $1,000,000 from trading penny stocks, mostly shorting pump and dumps as I have seen him stating on TV shows.  It is in fact,  the ONLY TRUE, verified journey from few thousand dollars into 7 figures wealth by trading penny stocks, mostly from shorting pump n dumps.  

I kept challenged Tim to show me one more guy who has actually verified gains  in the last few years from trading $5,000 into "only" $100,000 , not even one million  without any refills along the way. After a while I was blocked. Click on the images to enlarge.  

                      (How the hell I'm gonna make money now ? LOL) 

Anyway , like I said,  I know him since he went public in the media, many years ago, and there is a good reason why he went publicly with his strategy. He tried to implement his strategy, (lets just call it SHORTING PUMP N DUMPS) on a higher scale so he apparently opened a hedge fund. The hedge fund hit the ceiling simply because trading the penny stocks ,  spatially the  PUMP N DUMPS are very limited by volume, and the hedge fund of bigger size can not produce any significant performance,  meaning percent gain on the capital available to be used. Plus he lost on some stock he went long per recommendation of one of his friend  as he explained in the media channels.Trading penny stocks spatially  shorting penny stocks  is  limited because of several reasons:

1.      When the stock gets  pumped the buying can be virtually unlimited . You can buy stock and sell it to the next guy who is willing to pay more. So it goes on and on till the hype exist and the sky is the limit.

2.      When you short selling , nowadays there is a limit on how much stock u can borrow. There isn't unlimited quantity / volume / when you are short-selling especially when shorting the pump and dumps. Over 15 years ago was different. You were able to short sale stocks regardless weather the actual borrows were available. It was not needed to physically locate the borrowed shares. Today the law has changed and for every shares shorted there must be an actual shares borrowed . So here is the bottle neck, the limitation of the quantities you can actually trade shorting the pumps 

So being able to prove  publicly the growth from $12,000 to $1,000,000 got Tim the sit in the public arena. He became trusted. He had something to show for. He really did make it !!! However the strategy spread around quickly and I am giving the credit to Timothy Sykes for that: for being the pioneer in trading successfully penny stocks , particularly on shorting pumps as he has been presenting on many of his seminars how he made $1,000,000 from his Bar Mitzvah $12,000 gift. The strategy went viral.  It got supersaturated. Before it got over-saturated , making  quick money  was really simple ( speaking in the hindsight ). A stock goes up 100% or even more , you short it , next day or two,  or even at the same day,  stock would deflate and generate 50% income on your short position. That was  almost with 100% certainty back then guaranteed. Hey , I lost mostly on all longs on those pumps. Why was it almost 100% guaranteed? Because almost nobody else was shorting! Most of the regular people did not know about shorting. Even those who heard about shorting, like myself, thought shorting was illegal. Big hedge funds , the gigantic proprietary trading firms  were not interested in them because of the micro cap  limitation. They have billions of dollars  they have to place . 

Tim nailed it big with his few thousand bucks.And he made it. Until he hit the ceiling. And then started teaching,. Very clever  to make the real big bucks , great idea gotta give it to him.  

Think about it:  as he said on TV shows many times, he was shorting every single day a pump that was 100% up or even lot more and almost every single day or week he made 50% return on his small investment. So the word spread around.

Now do the math!!!

Invest $1,000 and make 50% every week.

Re-invest the next week  $1,500

Compound the profits, re-invest it again.

In one month you have made $5,000

The second month you will be at $50,000

The third month well over $100,000

And this is how he made $1,000,000 by trading hundreds of pump n dumps worthless companies, mostly shorting and as he says trading those pumps long  when it was working 15 years ago .as he also claims ...Congrats !!! 

If he was able to make $1,000,000 in two years from $12,000 start up capital , how much he could have made with $1,000,000 start up capital in the next two years? What is the proportion?

Don't you think he could have made  $1,000,000,000? YES ONE BILLION? 

Who in a clear mind will give up making a $1 billion and sell his teaching "how to short sell pumps n dumps" or as he claims "how to buy going long penny stocks to "ONLY" make $5,000,000 ( Five Million USD) from subscribers? 

Yes he has stated that he makes $5,000,000 per year from teaching how to trade and his profit from trading are actually very small because he just wants to teach you how it is done, 

And he teaches because  "HE LOVES IT"

Does he love the "teaching " or the $5,000,000 he makes from the teaching ? Pretty clever , gotta give it to him. 

If the shorting pumps works the ways he makes you believe in it,  or in fact if in general you can make millions trading penny stocks, would HE  throw away $1 Billion to make 5 millions ???

Would YOU throw away $1 billion to make $5 million???

Why not make $1 Billion from trading then donate to the charities $500,000,000 instead of  some $10,000 or $20,000?. Great way to advertise himself. tax relieved  donations,  from the Mr. Nice Guy. If one is a true humanitarian , he doesn't even need to publicly mention his name.

Tim was smart enough to figure out how to make $1 mil with $12 k  in that time 15 years ago. He was extremely lucky too, don't  forget the market bubble around the year of 2000 when everything was skyrocketing up. And now he turns "blind" to give away $1 billion in exchange for your subscriber fees of $5 millions per year? . Think again!!
You may not be old enough  to even know what happened in 2000. He keeps telling you how he made $1,6000 in the year when you were only 7 yrs old maybe. He has been using his lucky "5 min " success from 15 years ago to teach you something that doesn't work today for whatever he charges  you  to become his challenge student ?   

If you still haven't figured it out what is my point read some more: 

The shorting pump n dump strategy the strategy that made him famous, which is how I learned about him through the TV  shows got so supersaturated. Nowadays , unlike 15 yrs ago in Syke's era, when pump comes around, there are so many traders that know about it, so many traders will jump on shorting the pump. It is a dog's world, who is faster grabbing the shorts and the MOST IMPORTANTLY WHO HAS THE MOST MONEY TO SUSTAIN AND SURVIVE THE VERY POSSIBLE NOWADAYS EPIC PROPORTION SHORT SQUEEZES. 

15 years ago TIM was one of the very few ones WITH HIS $12,000 trading penny stocks particularity shorting the pump. That's why was 100% guaranteed 50 % return on his investment in few days or few weeks  !!

Now you have the entire planet shorting, doing the same thing !

The stock gets so overcrowded, meaning too many people on the short side. 

All those people are like you with $5,000 accts. All those people like you, being now thought: 

"Oh don't you worry about it , you can use a STOP LOSS IF YOU ARE WRONG " .. 

.. I cant stop laughing while  writing this . 

Guess what happens when stop loss gets triggered on overcrowded shorted stock??

Are you guessing ? Or you want ME to tell you?

And guess what may happen if you are short penny stocks overnight ?

Ok I'm sure you guessed: When  ONE STOP GETS TRIGGERED , gets executed on market order, much is higher than what you really want to , then the next stop gets triggered from the other short seller with $5,000 acct like yours and since the stock is so overcrowded the short squeezes nowadays are of epic proportions , which was never the case 15 yrs ago when Tim made his ONE MILLION !!! Yes only ONE MILLION!!! Or maybe $1,600,000 as he claims that has been documented.

But hey you saved yourself with your stop loss and you lost just a little bit right? Not big deal right? Well, it is a big deal because you will get stopped more and more often shorting the pumps, then you gonna be right with yours $5,000 hard earned money.

And guess what: who is on the other  side not getting stopped? 

The guys with lots and lots of money.

The guys who can add and add and add some more to the initial short position. And that guy is certainly not you with $5,000 acct ... Or 25,000 acct ...Neither the guy with   $100,000 acc... Neither  maybe the one with $500,000 acct...If you think you can make millions with  $5,000 acct  trading any kind of strategy  as Tim notoriously promotes in his advertisements,  THINK AGAIN. I haven't seen one true broker acct with such performance in last few years. Wait a minute: I have NEVER seen one.  Oh you thinking profitly ? LOL .. Ill get to it some other time.

ONLY THOSE GUYS with big bucks can sustain short squeezes of epic proportions. Only them will bank on the short 100% guaranteed.  But today, even those guys are already realizing that it is not really worth to tie so much capital just to make sure they can survive the squeeze. At the end of the day the percent gain return on their money is getting to be insignificant. They will be better off just investing their millions in rental real estate properties, generate passive and sure income. 

This is what we talked about with  Tim on twitter. I was speaking the truth not bashing. His followers were reading our twits. The truth was being revealed. And he didn't like it. He kept insulting me over and over in front the entire twitter audience. My feelings are still hurt. Majority of the people believe him that I have no idea about trading.  And I cant blame him for not liking it because the truth hurts  The truth that it is almost impossible to make $1,000,0000 trading penny stocks with $5,000 acct. That was all we talked about. More people are aware of the truth less subscribers he gets. Less subscribers he gets less "charity donations he makes" . The donations he makes are actually donations from you!!!

BUT WITH  HIS NAME ON IT !! NOT YOURS !!! 

 THE SHEEP ARE PAYING FOR HIS FAME! 

His self propelling fame will generate more sheep  to give him more money so he can publicly make more chop change $20,000 donations, ( advertisements ) that will make more bank for his buck then using other vehicles for advertisement.  You are the one who will stay locked in your room, depressed, with another broken dream , a dream to make millions with your $5,000 that you HAD. Now you are out of your $5,000 or you will be out very soon. Add the newsletter subscription fee you paid to Tim,  for how many months? Or maybe you want to become his challenge students for $7,000 or what ever is ongoing rate with his genius software? 

• Is actually the CHALENGE STUDENT program any different from the 10 times cheaper SILVER PACKAGE ? 
• Is the CHALANGE STUDENT package just a glorified SILVER PACKAGE only 10 times more expensive ?  

And Tim is driving his Ferrari , the Lambo , and Tim flies the world in privets jets,  living lavish life stile with his entire family. As he says : "The only way to travel"  the way to travel on your money !

We talked about this, and some followers took it as I am bashing Tim. 

No, I am not bashing him: i just speak the truth. And he insulted me for doing so. And yes I took it personally. And in a way I am thankful for his insults because if it weren't for them I would not be writing this which ultimately will help many readers in understanding the cruel reality of the trading , trading the penny stocks,  particularly the danger of shorting pump and dumps with small accounts.  

I'm sure Tim will come across with different strategies , other then shorting pump n dumps. His marketing is focused to target  the small guy , the $5,000 acct guy, you the student in the dorm, the $15 an hour hard working class, the people burred in debts trying to find a way out , the single moms trying to catch up with their mortgage. 

He is super smart, extremely intelligent, and very knowledgeable about marketing his "get rich with little money" campaigns. He will make you believe that you need him, that you need his paid services, he knows you want to believe in the dream  that you can make $1 mil with $5,000 trading stocks. And you want it. The more you want it the better are his chances to sell you, to take your money. You want to be sold. You want that chance! What's $100 for you ? Just spend it and try. But don't worry about the hundred bucks. Worry about the $5,000 acct you opened with the broker who charges you $7 commissions per side. Worry about the dream that is about to be broken. Worry about the guy who owes $108,000 to his broker because he got short squeezed beyond his  stop order overnight when KBIO skyrocketed , and many many other unknown heroes who lost everything ! Click on the photo to zoom it in and see the numbers clearly 

                                   Click on the images to enlarge view

If you think $5,000 is all you can lose THINK AGAIN and yes click on the photos

You can lose what you don't even have , beyond and above  EVERYTHING you have. . 

                               KBIO exapmle of an overnight  short squeeze

This is how it looked on the chart. Stop loss will help your $5,000 acct ?  LOL sorry but gotta laugh. By the way , this is only one  example of a pump n dump . I do not state this is particularly Syke's student. It is only an  example of how shorting penny stocks  with inappropriate size can bankrupt you in less then 24 hours.

You admire Tim. You admire his life stile. He is becoming copy cat of Don Lapre.  Are you old enough to remember him? Google him !! Or  click here

Tim seems to be  a modern version of Don Lapre. 

Don Lapre used  NewsPaper System of Advertising click here to see how convincing he was. This was  about 20 years ago , when you were maybe an infant. Tim is using the modern internet media to generate his only true big income: selling you the dream ! The dream to make fortunes with tiny investment. 

I know the truth hurts, I know how it feels to have a broken dream. Been there done it all. But face it!!!

Do you want to learn how to trade? 

Do you really want to make money trading? 

Do you want to pay Tim to teach you how to make  $1,000,000 with $5,000 acct?
Do you want pay for a service how to play lottery ? 
 NOBODY MAKES CONSISTENTLY  even $100,000 with $5,000 acct.  If anybody did make it, let me know who that is. For everyone you know who made $100,000 with $5,000 I will show you hundreds who made the same in casino or by playing lottery. You don't need to pay anybody to get lucky if you were born lucky.

• Do your own home work . Open at least $30,000 acct to have good commissions and
•  to  avoid PDT rule then trade small , super duper small.

Feel it. Experience it on super small scale, directly on your skin.

Know in advance:  you will lose. 

So,  lose small... 

Try to figure out what is actually going on in the "shark tank" . Put your toes in it. Don't let the sharks eat your entire legs. Feel the pain on the small scale. Trading is not easy. Face it. Don't fall for Timothy Sykes' "selling the dream". You will more likely get hurt.

There are other ways to become successful trader. But all you need is:  yourself, your desire, your passion, your willingness to open a bigger acct ($30,000)  and to trade small for a very long time. You must last to be able to learn it. You must outlast all the 95% traders who lose , you must outlast the traders with the  $5,000  accts!

You must last just to stand the chance to just survive the markets . Forget about making money from trading for some time. Think this way: you are getting in a shark tank, your  goal is to survive at first, not to eat the sharks. Once you learn how to survive , then and  ONLY THEN you may stand a chance  to make some money, to take some of the food from the sharks.

Let the dream be, 

Dream it , and 

Dream with your eyes wide open. 

Salute 

AngelDan@DaChopa     twitter

AngelDan@traderUSA  instagram