Timothy Sykes talks stock trading in a recent interview with Larry King. The interview starts with Larry King saying…
“My guest is Timothy Sykes, the multimillionaire stock trader and entrepreneur. Timothy invested his $12,000 Bar Mitzvah money, which is about $11,500 more than I got, in penny stocks, making his first million in his college dorm”.
“Timothy invested his $12,000 Bar Mitzvah money, in penny stocks, making his first million in his college dorm”
LARRY KING
Before Timothy Sykes talks stock trading with Larry King the celebrity trader is quizzed about his early life
“Tell me about your upbringing?”, asked Larry
“I’m from a small town, Orange, Connecticut. We weren’t rich, we weren’t poor. It’s just middle class,” replied Timothy Sykes
Timothy Sykes talks stock trading when he is asked by the interviewer why he did not choose a vocation that most parents aspire their children to take-up such as a doctor, lawyer
“Did you have early business instincts?”, asked Larry.
Timothy Sykes explains how a physical ailment on his arm led him into trading. “Yeah. 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” said Timothy Sykes.
“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”
TIMOTHY SYKES
Timothy Sykes talks stock trading within the context of the roaring 90s bull market
“This was 1999, the stock market was going crazy. My parents, in their wisdom, gave me control of the Bar Mitzvah gift money. They thought I would lose it all. They thought it would be a good lesson for me, like tough love, let the kid learn the value of a dollar. And instead, by the end of my senior year of high school, I turned it into over a hundred thousand. And then by the end of freshman year, I was at nearly a million,” said Timothy Sykes.
But it is when the subject of penny stocks is raised that Timothy Sykes talks stock trading with immense amounts of energy and enthusiasm. Perhaps that should not come as a surprise, bearing in mind that Timothy Sykes’s call to fame and fortune is based on trading volatile penny stocks.
“I always look at the biggest percent gainers every single day, whatever stock is hot. The way that I found Liquidmetal, they had a deal with Apple”
– Timothy Sykes
“You’ve been called perhaps the most famous penny stock trader in the country. First, what is a penny stock?”, asked Larry.
So these are low priced stocks, stocks trading under $5 a share. A lot of very sketchy companies; a lot of just very developmental companies that might have one or two projects, so not Microsoft, replied Timothy Sykes.
Timothy Sykes talks stock trading by flagging Liquidmetal as a penny stock
“Liquidmetal, 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 20 cent or 15 cent a share stock,” said Timothy Sykes.
Timothy Sykes talks stock trading in terms of profiting from the volatility of penny stocks. “I was, at the time, trading Netscape and Yahoo, which were two of the biggest companies. And my account would go from $12,100 to 11,900, so I gravitated towards these lower-priced stocks, which no one is talking about on CNBC, but they’re very volatile, and my account grew very quickly”, said Timothy Sykes.
How does Timothy Sykes go about searching for his penny stock picks?
“I always look at the biggest percent gainers every single day, whatever stock is hot. The way that I found Liquidmetal, they had a deal with Apple. It was announced in an SEC filing, and the message boards started talking about it. There’s a group of traders that get these small companies riled up” said Timothy Sykes.
The biggest percentage gainers are displayed on most financial websites. “They’re just not talked about penny stocks on the major media, which is why I think there’s an opportunity there” said Timothy Sykes.
“The Wolf of Wall Street was the one doing the pumping and dumping. I’m just trying to piggyback moves that are already existing” – Timothy Sykes
The secret of trading penny stocks is not believing a word that the directors say and understanding that most will fail but also understanding that momentum has pushed them up dramatically for a few hours, according to Timothy Sykes
Timothy Sykes talks stock trading in a way that sounds eerily familiar to pump and dump stock schemes where the last sucker out is the loser.
“The Wolf of Wall Street was the one doing the pumping and dumping. I’m just trying to piggyback moves that are already existing. I’m trying to predict based on patterns and historical price action. I’m not a broker, I’m not a financial adviser. I just try and show what patterns are working,” said Timothy Sykes.
Timothy Sykes talks stock trading in terms of shorting penny stocks
Most people lose money investing in penny stocks. “So I actually mainly short sell penny stocks, which sounds crazy. You bet on the stock going lower because they’re only a dollar or two dollars a share. But if a company is actually fundamentally worthless, then when it’s at one or two dollars a share, it drops 90%, and that’s how I collect my money,” said Timothy Sykes.
So put simply, Timothy Sykes profits from betting against the fallacy.
