Timothy Sykes tips for successful trading were put forward in a recent piece posted on his blog
Timothy Sykes is best known as the university student who made $1.65 million by day trading while attending Tulane University.
Top on the list of Timothy Sykes tips for successful trading is to build your knowledge account.
“To become a top trader, you must focus on your education first,” said Timothy Sykes.
“The money can come once you have the right foundation,” he added.
“To become a top trader, you must focus on your education first”
Preparation is second on the list of Timothy Sykes tips for successful trading
“My strategies involve trading the most volatile stocks in the market. You must come prepared,” he said.
Timothy Sykes recommends traders gain experience by remaining in the game but also notes that most traders blow up their accounts before that happens.
“No matter how much you study, you need screen time and trade time. So I suggest new traders start small and size up over time. Learn to take singles and cut losses quickly. Focus on the process,” he said.
All successful traders have go-to patterns and practice risk management. They established that through experience,” he added.
Timothy Sykes acknowledged that it is only after years of studying and practice that his top students outperform.
He said that the percent change of large caps is too minimal for him. “I want big price swings,” he said.
Timothy Sykes finds that level of volatility trading penny stocks.
“All successful traders have go-to patterns and practice risk management. They established that through experience”
“Despite the name, ‘penny stock’, actually refers to a stock trading at under $5 per share.
Yes, they can trade for fractions of a penny, but a $4.95 stock is also considered a penny stock,” he said.
“Pennystocking is a unique trading style that requires a specific strategy and mindset,” he said.
Timothy Sykes’s tip for successful trading penny stocks is to sell the rip
“What if I told you I don’t believe in any of the penny stocks I trade?
I know. It’s cynical and counterintuitive.
Generally, people think trading is about finding a company to believe in, then buying and holding its stock for years.
“Even when the market’s slow, you can find plays. And things can heat up at any time” – Timothy Sykes
Penny stocks are the opposite. Most of them eventually fail. But before they fail, they can experience massive spikes,” he said.
“Even when the market’s slow, you can find plays. And things can heat up at any time,” he added.
Timothy Sykes doesn’t believe that any of these small companies will change the world. “You’ll decimate your account when the stock inevitably crashes and burns. I know from personal experience. (More on that in a bit.” he said.
It sounds like selling to the bigger fool theory.
“Sure, a penny stock could turn into the next big thing. But it probably won’t,” he said.
So what’s the right way to trade penny stocks?
“Expect the worst. Know that most of these companies won’t succeed but they could experience some huge spikes before they fade into oblivion,” he said.