Timothy Sykes is a self-made trader and a successful entrepreneur. He earns millions of dollars through stock trading along with sharing his tips and techniques with the world. It has been considered by him that the stock market industry has seen various changes happening in the environment from the past decade.
He understands the passionate people trying to trade stocks to make a profit. However, it has been seen that people don’t really have the knowledge and awareness of the stock market and trading industry. They are unaware of the fact that unlike any industry, this also has all the good and bad aspects to it.
The myth is, once you step into trading, you will have huge benefits in return. All you need to do is hugely invest in the beginning.
But Timothy Sykes explains that the good and bad aspects have to be the good market and bad market where people need to understand when to invest. Most importantly, they need to be patient enough to wait for the market to start performing effectively. Every business and investment requires adjustment in the start which helps in the long term success of it.
If you are a new trader, you must know the importance of adjustment along with recognizing the entire scenario and process. You cannot only invest small amounts into shares and expect huge returns of profit from it. However, this strategy is possible, it consists of a lot of risk factors. Along with that, you will have to wait for the market to perform in a beneficial and good way.
People who tend to make this happen are the ones who get the best kind of stocks available in the market that are the penny stocks. Tim Sykes is also one of those who started entrepreneurship by trading penny stocks.
In this guide, we have discussed a Timothy Sykes Review of how he became a successful self-made entrepreneur and one of the best penny stocks traders in the world, along with describing what are penny stocks and how to effectively trade them in the stock market.
Not only that, but Sykes also encourages new traders of the market through conducting several training lessons both virtual and physical. He believes that the first and foremost ability that a trader should possess is patience. Also, that’s absolutely correct because patience is something that is significantly important in the growth of stocks and pays the most to an individual.
Before we begin, know that it is important to not only educate yourself regarding penny stocks and the stock industry but also learn effective and practical ways to take advantage.
What Are Penny Stocks?
Penny stocks are the stocks that are created by small companies and firms to enable and establish their business in the market when the shares are bought by traders. The traders then sell them by keeping their profit. These stocks are based on their name and are traded for less than 5 dollars. Mainly they are traded under 1 dollar in total.
That is why they are also called one cent stocks and are hugely traded between small firms, traders and investors under the range of minimum 1 dollar and a maximum of 5 dollars.
Furthermore, unlike the bigger exchanges such as Newyork Stock Exchange (NYSE) or Japan Exchange Group, penny stocks are traded daily and weekly by traders through the platform of small exchanges. These trades are also dealt with electronic and digital transactions conveniently over the counters by the Electronic OTC Bulletin Board.
An example of penny stock trading:
Assume that you have 1000 shares and the cost of each share is 1 dollar. This means that the shares are worth 1000 dollars at the moment. However, you are waiting for the market to perform well and expecting the price of shares to increase. If the shares increase by 1 dollar, you’ll get an additional profit of 1000 dollars and the total amount that you will receive will become 2000 dollars.
However, even after all your anxious waiting if the market does not perform well and the cost doesn’t increase, your shares will expire if not sold. To not let them expire, you’ll have to sell them at the exact rates of the stock market. Either this can result in a huge loss if the prices decrease from 1 dollar per share or this can become a no-profit and no loss situation if the prices remain the same. This is the unpredictability of penny stock trading.
Regardless of this, a bigger loss appears when a trader discovers that the shares he bought were from a bankrupt company. It is because the company that has been announced as bankrupt becomes unworthy and useless along with all the shares it once produced and sold. Similarly, that company is asked to pay off their debt that they often fulfill by selling the liquid assets they possess.
For these various reasons, penny stock trading is popular for its unreliability and unpredictability declaring them expensive and extremely risky.
Methods Of Effective Penny Stock Trading From Timothy Sykes
A training session conducted by Timothy Sykes had the discussion that it is important to focus on being patient with the stock market and the slow growth that comes with it. By slow growth, it means that some days trading becomes limited and restricted that discourages the investors hugely. At that time, adaptation and tolerance is the requirement of the situation. This is known as the kind of practical learning and experience.
Likewise, Sykes also tells his students that there is never an adequate time of exchange and trade. You have to understand the strategies by grabbing opportunities and sometimes by learning the hard way.
Penny stock trading is not similar to any other kind of trading. It is significantly important to educate yourself before diving into the real business. Do not end up with high amounts of debt as this can never help you in becoming a successful penny stock trader.