For many, the concept of the stock market conjures an image of crowds of men in suits, jockeying for position, holding buy and sell tickets from their billionaire masters. The masters lord over their jockeys as computer screens and electronic tickers mark the exchange of billions of dollars and the frenzy on the floor gradually picks up steam. The clock slowly approaches 4pm, when the newly rich and the newly poor will be sorted by a bevy of arrows and numbers.
But there is a new trader that has emerged along with the New World of solo entrepreneurs and dorm room millionaires. This group of people decided that the existing standard of rules did not apply to them. They forged a new path. They side-stepped the swarm of traders at the New York Stock Exchange, and instead, did it from the comfort of their personal computers at home or from laptops on the go. They took pennies and turned them into millions.
The Guy Society admires this sort of gusto, and we hunted down one of the most successful penny-stock men in the world. Timothy Sykes took a few moments and gave us some insight into the army of New World millionaires he is building in his image.
The Guy Society: It’s widely publicized that you took $12,415 and by the age of 21 had turned it into $1.65 million trading penny stocks. What convinced you, at such a young age, that penny stocks were where to put your money?
Timothy Sykes: Because I only had $12,415 to play with, I wanted to start small and see what I could do with buying some stocks at $2 or $3. My parents thought I would lose it all and it would teach me a good lesson, but luckily that wasn’t the case. I used to spend hours in the computer lab at school, taking over multiple computers, studying chart patterns and learning how to trade.
The Guy Society: You set up profit.ly, which gives full transparency to all your trades and profits. With transparency comes authenticity, why do you think other online “trading experts” choose not to prove their worth in this way?
Timothy Sykes: A lot of people in the finance world are shady about showing their trades – I think mostly because they are embarrassed of revealing their losses. For me, a loss is a learning. You can’t win every time so why not take that loss and learn from it to make it a win next time.
The Guy Society: What’s the key to being a successful trader?
Timothy Sykes: Dedication and patience! I’m not going to lie to you and tell you that getting rich through penny stock trading is as simple as buying and selling a few shares. It’s hard work, but it’s work that anybody can do if they have the right training.
The Guy Society: I have read you being critical of the industry, especially the “online fakers”. Do you think social media and the internet in general has helped or hindered what you are trying to achieve?
Timothy Sykes: Social media has changed the industry tremendously. I’m now able to instantly tweet out which stocks are hot or call out pump and dumps. There’s always going to be frauds and haters trolling the Internet trying to scheme people, you just gotta keep doing what you believe in and show it all as transparently as possible using these new tools on social media.
The Guy Society: It is evident from your Instagram that you live a life of luxury: supercars, mountains of cash, and travelling to some of the most beautiful destinations on the planet. With all that luxury in the palm of your hands, how do you ensure you maintain a good work/life balance?
Timothy Sykes: I know posting so much can make me look like a jerk, but I also know from being the only stock market guru to create millionaires from the scratch the past few years just how much daily motivation and inspiration people need in order to keep studying and working toward their goals.
The Guy Society: What are the best and worst trades you’ve made to date?
Timothy Sykes: During the Asian tsunami of 2004, I lost $180,000 in one day betting against a near bankrupt company that spiked a ton since they made earthquake absorption technology for buildings. The rumors were they were going to get contracts due to the catastrophe, but I knew given their dire financial state, they couldn’t handle any business even if they got it. The stock kept surging despite the red flags and I had my biggest loss. But I refused to give up because I knew I was right based on their financials and the next day I kept shorting the stock as the tide finally turned and I made roughly $220,000. It was the worst, most stressful $40,000 I ever made, but it was a tremendous educational experience.
The Guy Society: No matter what business you’re in, people will almost always face big losses. How do you handle your big losses, especially if it’s something you did wrong?
Timothy Sykes: It’s no secret that I’ve had some big losses. They’re never fun, but when you figure out what you did wrong, you decrease your chances of making the same mistake in the future. That’s a hard thing for most people to do, because it requires you to sit down and really examine the choices you made and the things that you could have done better. You know what’s not very fun? Sitting down and looking your failures dead in the eye. If you don’t, though—if you’d rather stick your fingers in your ears and pretend you’ve never once made a mistake – you’re going to bust your portfolio before your skills have a chance to catch up with your aspirations and make you profitable.
The Guy Society: You aren’t afraid to make enemies when it comes to the protection of the industry. You’ve publically exposed a number of high profile companies and celebrities on pump and dump stocks. Do you think this type of passion for the industry you’re in sets you apart from others?
Timothy Sykes: F*&^ yea! No one else has the balls to call celebrities out, but I don’t care – I would rather protect my students and others from these frauds than make friends with celebrities.
The Guy Society: So far, according to your Instagram bio, you have mentored 4 now-millionaire students. Can you tell us about some of your most successful students and a little about their stories?
Timothy Sykes: Tim Grittani was one of my first millionaire students. He started with just $1500 and turned it into $1 million in just three years! CNN and Fox Business even reported on it. Now, his portfolio is at $2.7MM and he just released his own DVD too: http://timgrittani.com. There are more millionaire students like Grittani and several who have made six figures, but they don’t want the publicity that comes with making so much money, which is tough for my business, but I must respect it. The good news is they’ve given detailed interviews on their successes and failures for students to learn from.
The Guy Society: Tell us about timothysykes.com. What can one of your students expect?
Timothy Sykes: I blog daily on my website about the latest stocks and key tips that I’ve learned over the years (or even that day!). You can also apply to be one of my Millionaire Challenge students on my website and read about other students testimonials too.
The Guy Society: If you weren’t a trader what would your ideal job be?
Timothy Sykes: A travel blogger. I’ve visited 100+ countries even while making millions. The Internet allows me to make money from literally anywhere in the world.
The Guy Society: It’s evident that you lead an extremely exciting life, especially with travel. What does Timothy Sykes like to do in his down time?
Timothy Sykes: These days, I don’t have much down time with all of the emails I personally respond to, webinars, I’m writing two books right now, press interviews, blogging, trading! I also do a lot of stuff for my charity, The Timothy Sykes Foundation, which is my newest project. We have over $2million we are planning to give away to people who need a little help. Aside from work stuff, when I do have some time to unwind, I mostly like to spend it with my fiancé and family. I’m also a big movie buff and love going to sports games. My business partner and I bought a USC suite for football season. It has the best view in the house and open bar – you can’t go wrong with that setup ; )
The Guy Society: You’re Mr. Transparency, so I don’t feel at all guilty asking this question. What was your last major purchase and what is your next?
Timothy Sykes: Probably my month-long European vacation in August. My fiancé and I traveled all over Spain, Italy, Amsterdam and stayed in the best hotels, ate the best meals. We were also looking at wedding venues so we had to fly over our wedding planner (she did Kim K’s wedding too) and her assistant in first class. The total trip expenses were roughly $150,000. For my next big purchase, I have to find my next exotic car. I’m thinking about another Lamborghini, Ferrari or McLaren, but I have to test out all the latest versions when I find the time. It will probably be $250,000-$400,000 depending on what I like best.
The Guy Society: What’s your favorite: City. Restaurant. View. Car.
- City: Rome
- Restaurant: Too many good ones to choose one! I would say: Per Se and Jean Georges in NYC; Sugarfish in LA; La Sponda in Amalfi Coast, Italy
- View: Le Sirenuse in Positano, Italy – hands down, fav spot!
- Car: My Orange Lambo
The Guy Society: What’s next for you?
Timothy Sykes: I want to create more millionaires!! Nothing brings me more happiness than seeing the success of my students. There’s a lot of exciting projects currently in the works so stay tuned for more good stuff to come soon.
Connect with Timothy Sykes:
Photo credit: Timothy Sykes Instagram
*Article completed with assistance from Thomas Humphreys