Timothy Sykes trading strategy. Timothy Sykes Instagram
18.12.2012
Timothy Sykes was born in 1981 in Orange, Connecticut, USA. Graduated from Tulane University. In 1999 he began trading shares of American companies, in 2003 he founded his own hedge fund, which lasted about three years.
Trader, teacher, businessman, founder of Internet projects timothysykes.com, investimonials.com, profit.ly Author of the book "An American Hedge Fund: How I Made $2 Million" ("An American Hedge Fund"). Currently lives in New York, actively trades on the stock exchange, is engaged in teaching, travels a lot.
Back in early 1999, when Timothy Sykes was studying at high school, the stock market was growing rapidly, and the injury did not allow him to actively engage in sports, so he plunged headlong into trading in the financial markets. His parents gave him $12,000 to manage, being sure that he would lose it, and this would be a good lesson for him. But instead, Sykes turned $12,000 into $123,000 by early 2000 and then $800,000 by the end of 2000. As he wrote in the first part of his book, his strategy of buying penny stocks on price breakouts was ideal for that market environment.
The $12,000 he received as a gift from his parents turned into $2 million in three years. Last year In college, I started my own hedge fund, which for three years was #1 in the Barclay Hedge ranking of short-selling funds. Timothy Sykes was named one of the 30 best traders under 30 by TraderMonthly in 2006. From 2003-2006, Timothy was ranked No. 1 by Barclays among hedge fund managers.
According to Sykes, the key to success is both in trading and in public speaking is to be open and honest. It is unlikely that anyone previously imagined that absolute honesty would be such a revolutionary concept in such a business as stock trading.
Key factors before choosing any potential Timothy Sykes trading opportunity:
1. Makes sure the stock he is trading is "in play" because he wants to see a lot of traders involved as their participation opens the door to strong price action that Sykes can profit from. This means that he is looking for liquidity in the market, and mass mailings are a great indicator of how many traders are involved in a given market action.
2. Tries to treat every trade as if it were his last. In this case, Timothy Sykes waits until the very last second for a price at which he simply cannot refuse the trade because the setup looks so perfect. There are so many fakes and false moves with penny stocks that patience and discipline are key to successful trading.
3. He trades only cheap stocks, primarily on the Nasdaq, but occasionally on AMEX, NYSE and OTCB. Sykes believes there is a great advantage here for small account traders, and he keeps repeating that small cap traders have better odds and can use their small account to their advantage when trading $2-$3 stocks instead of hugely popular stocks. that cost $300 or $500.
Timothy Sykes believes that understanding what he trades allows him to succeed. He understands what is happening in the market and where it leads when he opens a position. Secondly, his opponents in this game are American housewives and their not-too-sharp husbands, Sykes is not playing against banks and financial corporations, which have incomparably greater opportunities in comparison with him. Their field is liquid stocks and other traded markets, they are not interested in "penny" papers, there is too little money here.
17:10 21.01.2014
Timothy Sykes is one of America's most successful young traders, having made his first million dollars before he was 20.
When Tim started his way as a trader, many considered him a daring boy, an upstart who throws "show-offs". But if you start the story from the beginning, then we will see a boy who has achieved success in a short period of time.
Sykes was born in 1981 in Orange, Connecticut, USA. Graduated from Tulane University where he studied philosophy.
He started trading stocks in 1999 at the age of 18 with a $12,000 gift from his parents. Tim invested in penny stocks, cheap stocks worth less than $1 that have great upside potential and are considered very risky. His parents were sure that he would lose money, and this would be a lesson for him. But by the beginning of 2000, Timothy had turned $12,000 into $123,000, and by the end of 2000, he had already turned into $800,000. In just 3 years, he earned $2 million.
Until the age of 17, Sykes did not even think about a career as a trader. Tennis was his main passion. He was even an amateur champion in his state. But a hand injury put an end to his tennis career, and he began to look for an occupation that would truly inspire. So his eyes fell on financial markets.
In 2003 (his senior year of college), Timothy opened his own hedge fund, which for three years was ranked number one in the Barclay Hedge ranking of short-selling funds.
Timothy Sykes made the list in 2006 30 the best traders under 30 according to TraderMonthly magazine.
In addition, Sykes is the author of the acclaimed book "American Hedge Fund: How I Made $2 Million", the star of the TV show "Wall Street Wars", and the founder of the Internet projects timothysykes.com, investimonials.com, profit.ly. It is interesting that Timothy on his website shows the transactions that he made (which you will agree is very rare among traders): how much it enters and what profit it makes.
According to Sykes, the key to success, both in trading and in public speaking, is to be open and honest. It is unlikely that anyone previously imagined that absolute honesty would be such a revolutionary concept in such a business as stock trading.
Timothy currently trades with $750,000 of his own capital and travels the world and teaches. Thanks to the flexibility of his strategy, he trades from anywhere with an internet connection. Timothy is successful and makes a profit every month. More and more people who have completed his course of study become successful traders by trading according to his strategy.
“This business is full of crazy gamblers, no different from those who put the last money in the casino. They probably weren't even involved in trading in the truest sense of the word because they didn't have the proper discipline, intent, and diligence to understand that successful trading is like managing. real business- you have to be meticulous, otherwise you will fail.
Too many enter the trading business hoping to make a quick buck, which is the surest road to destruction. Instead, focus onstudying because it's a marathon, not a sprint."
Key factors before choosing any potential Timothy Sykes trading opportunity:
1. Sykes makes sure the stocks he trades are "in play" because he wants to see a lot of traders involved as their involvement opens the door to strong price action that can be profited from. This means he is looking market liquidity, and mass mailings are a great indicator of how many traders are involved in a given market action.
2. Tries to treat every trade as last. In this case, Timothy Sykes waits until the very last second for a price at which he simply cannot refuse the trade because the setup looks so perfect. There are so many fakes and false moves with penny stocks, so patience and discipline are key components of successful trading.
3. He only trades cheap shares, primarily on the Nasdaq, but occasionally on AMEX, NYSE and OTCB. Sykes believes there is a great advantage here for small account traders, and he keeps repeating that small cap traders have better odds and can use their small account to their advantage when trading $2-$3 stocks instead of hugely popular stocks. that cost $300 or $500.
Timothy Sykes believes that understanding what he trades allows him to succeed. He understands what is happening in the market and where it leads when he opens a position. Secondly, his opponents in this game are - american housewives and their not-too-sharp husbands, Sykes does not play against banks and financial corporations, which have incomparably more power in comparison with him.
Timothy Sykes is the author of The American Hedge Fund: How I Made $2 Million and was #1 ranked by Barclays among hedge fund managers from 2003-2006. He is also a member of the TV show Wall Street Warriors.
Question: How did you first become interested in trading the markets?
Timothy: Back in early 1999, when I was in high school, the stock market was skyrocketing and my injury kept me from playing sports, so I threw myself into trading the financial markets. My parents gave me $12,000 to manage, believing that I would lose it, and that would be a good lesson for me. But instead I turned $12,000 into $123,000 by the beginning of 2000 and then $800,000 by the end of 2000. This was pure madness for a middle schooler, but as I wrote in the first part of my book, my strategy of buying penny stocks on price breakouts was ideal for that market environment.
Question: What do you like most about the trading business?
Timothy: I love the challenge of trying to find effective strategies and patterns in constantly changing markets. I have had to adjust several times during my ten year trading career.
The key to success in both trading and public speaking is to be open and honest. It is unlikely that anyone previously imagined that absolute honesty would be such a revolutionary concept in such a business as stock trading.
Question: How do you deal with losses and how do you set your risk tolerance threshold before a trade is made?
Timothy: My approach to risk is pretty simple: if a trade doesn't work out the way I thought it would when I entered the market, then I'll exit the position. It doesn't matter if I have a small profit or a small loss, undervalued stocks move so volatile and I trade the most volatile stocks that I can't afford to get into a movement pattern that I'm not 100% sure of.
Question: Are your trading approaches more geared towards long-term or short-term strategies?
Timothy: Only in the short term, but since my strategy is based on the ideological structure of deceit/manipulation, I'm sure long-term positions are also possible. I just never had the patience to try it.
Question: What are the key rules or factors you consider before choosing any potential trading opportunity?
Timothy: I want to make sure the stocks I'm trading are "in play" because I want to see a lot of traders involved as their participation opens the door to strong price action that I can profit from. This means that I am looking for liquidity in the market and mass mailings are a great indicator of how many traders are involved in a given market action.
I know it sounds a bit weird, but I really try to treat every trade as if it were my last. In this case, I wait until the very last second for a price where I just can't get out of the trade because the setup looks so perfect. There are so many fakes and false moves with penny stocks that patience and discipline are key to successful trading.
Question: What markets do you prefer to trade and track with your analysis tools?
Timothy: I only trade cheap stocks, primarily on the Nasdaq, but occasionally on AMEX, NYSE and OTCBB. I believe there is a great advantage here for small account traders and I will not tire of repeating that small cap traders have better odds and can use their small account to their advantage when trading $3 or $2 stocks instead of the extremely popular ones. shares that are worth $300 or $500.
Question: What was your most memorable trade?
Timothy: It was an ISCO trade in early 2000 and I went long it with 75% of my capital at the end of the week because they announced they would be showing on CNN over the weekend. The CNN report was very positive and price gapped $29 at the open on Monday from $17 on Friday. I closed my position with a profit of $123,000 and treated the entire student residence to dinner in the evening.
Question: Given all the variety of technical and fundamental analysis tools, how can a novice trader avoid information overload or the so-called "analysis paralysis"?
Timothy: Indeed, there is a lot of noise in the market. I think the key is to block almost everything and remember that great amount traders and financiers are the losers, both personally and professionally.
Studies show that 90%-95% of intraday traders lose, analysts are right up to 30% of the time, and more than 70% of mutual fund managers fail to beat the S&P500. I believe this is an entire industry trying to cover up its failures and inefficiency.
So you really can't listen to anyone doing technical and fundamental research, especially on penny stocks. Press releases and earnings reports are misleading to keep your stock floating as it allows you to raise more money.
Question: How would you characterize your technical approach to the markets?
Timothy: I am confident in technical analysis only because other traders do it. A price breakout has no real meaning outside of the world of traders, but since chart patterns influence the decisions of thousands of other traders, it inevitably affects price in a predictable way, and I pay close attention to it. This works especially well in my niche because these companies don't have any fundamentals - so technical analysis is the only kind of analysis possible!
Question: What do you think are the biggest misconceptions new traders have about trading the markets and trading systems?
Timothy: After a trial period where they are making consistent profits, many novice traders tend to make the most of their leverage as they want to make "big money" as quickly as possible, especially given the sheer number of "magic trading systems" that guarantee reliable profits. - each of which, of course, costs several hundred or thousands of dollars!
Question: What advice would you give to someone just now starting to trade the markets?
Timothy: I would advise him to read as many books as possible first before betting real money or even trying to understand trading through specialized sites. Read classics like Memoirs of a Stock Operator, How I Made 2 Million in the Stock Exchange if you want to be a trader.
This business is full of crazy gamblers, no different from those who put the last money in the casino. They probably weren't even involved in trading in the full sense of the word because they didn't have the proper discipline, intent and diligence to understand that successful trading is like running a real business - you have to be meticulous or you'll fail. .
Too many enter the trading business hoping to make a quick buck, which is the surest road to destruction. Instead, focus on learning, as this is a marathon, not a sprint.
Question: Can you describe your typical trading day and the average trade from setup to execution?
Timothy: First of all, I don't trade every day. Secondly, my preparation does not start at the beginning of the day, but from the previous evening. When the market opens, I have already spent 1,2,3, or 4 hours the previous night or early morning looking at the entire fundamental involved in this market) and the technical picture for all my potential trades.
Then it all comes down to the strength of the chart pattern. I most time I remain 100% in cash, taking only 1-2 positions when all the necessary components are really available.
As I said, I don't look for trades - I try not to trade and only enter the market if I can't afford to stay out of the market. Sometimes I do slip and rush, but the best trades are the ones where I am extremely patient.
Question: What decision-making process do you go through before choosing a certain sector of the market and a specific trade that would be worth opening a trading position?
Timothy: I'm looking at the strength of a trade setup. Ideally, if the volume increases several times from several hundred thousand to several million shares within 2-3 days, because there is a high probability of a quick reversal. I love short positions in these markets.
I don't have any market sector preferences, except for big moves resulting from really big events like an FDA approval, a high income, or a big contract.
Question: What analysis methodology do you use to find the best trading opportunities?
Timothy: That's a pretty broad question, but in a nutshell, I can say that I find the worst companies with the most liquid stocks in the shortest amount of time. I do intraday sales on penny stocks.
Timothy Sykes is the youngest trader in US history to become a millionaire at the age of 20, having increased his initial capital a hundred times by trading "penny stocks" (PennyStocks).
Biography
Born April 16, 1981 in Orange, Connecticut, USA After graduation secondary school in 1999 he continued his studies at Tulane University. A year after graduation in 2003, he opened a hedge fund, which he closed later in 2006.
Trader's way
The trader's career began in 1999 with the coming of age. By taking into trust the funds allocated by the family (a little more than $ 10,000), Timothy Sykes earned several million US dollars.
The second stage of his career - 2003, the creation of his own hedge fund (Cilantro Fund). Funds in the amount of $1 million were allocated by friends and acquaintances who became the first investors. Having existed for three years, the fund was closed.
In 2007, the trader decides to end his career by placing funds in one of his father's companies. During the crisis of 2008, the company went bankrupt, Timothy Sykes had to return to trading.
Exaggerated expectations of investors after the popular market derby of a trader from tens of thousands to millions made it impossible to open a fund. Timothy Sykes decides to work only for himself and develop social projects. This is how the websites timothysykes.com and investimonials.com appeared, as well as the profit.ly portal.
The third, current stage is economic freedom, trade by choice, travel and teaching. Settling in New York, Timothy Sykes shares his experience and strategy from the pages of the site.
The youngest and most successful trader in the United States dreamed of a sports career since childhood, not really thinking about the markets, until an injury crossed out his aspirations.
Timothy Sykes was ranked (from 2003 to 2006) at the top of the Barclays hedge fund manager rankings. As it turned out later, this rating was presented by the Iowa state agency with a similar name to the financial corporation Barclays Group.
After the autobiography released by the trader became popular, Timothy Sykes was invited to star in the TV series Wall Street Warrior.
In 2006, the trader was in the top 30 youngest successful traders according to TraderMonthly magazine.
Return to the exchange in 2008, Timothy Sykes staged a show called Transparent Investment Management. Having invested $12,415 in the first stage, Timothy Sykes increased it to $90,368 in two years at public auction.
In 2012, the trader held a beauty contest on behalf of his own brand "Miss Penny Stock".
The trader is not shy about sharing his successes and travels on Instagram, for which he received the nickname "Instagram Wolf". Expensive cars and thick stacks of banknotes are published on a par with beautiful unique natural corners from around the world. Timothy Sykes has over 800,000 followers.
Timothy Sykes is currently involved in a charity project supporting the construction of schools in Asia and Africa.
A family
Father - Jo Ann Sykes, mother - Joel Sykes.
Bibliography
An American Hedge Fund. How I Made $2 Million as a Stock Operator & Created a Hedge Fund is a young trader's autobiography describing the rise of the penny stock markets. Trading against the trend and breaking the traditional rules of trading, Timothy Sykes details how, by the age of 26, he managed to become a millionaire and the youngest hedge fund manager.
Timothy Sykes- A successful trader who made $2 million out of…$12,000.
If it’s true that everything important in life should be done before the age of 30, then trader Timothy Sykes not only met, but significantly exceeded this plan. He became a millionaire at the age of 20, just three years after starting his trading career.
Even before reaching the age of 17, Timothy showed serious promise in tennis and even became a junior champion in his state, but an unfortunate hand injury put an end to his sports career. It was then that Sykes began to look for an occupation to his liking. He did not want to do something that did not bring any moral satisfaction, but at the same time he wanted to make good money, because his choice fell on stock trading.
As soon as he came of age, he invested $12,000 donated by his parents into trading. They did not believe in his talent and believed that Tim would quickly drain all the money and this would serve him as a good lesson, but something happened that they could not expect. To begin with, a young Jewish guy invested $12,000 in cheap stocks (penny stocks), each of which was worth less than $1, and by the beginning of 2000, his balance was already $123,000. In the last months of this year, he had $ 800,000 in his account, and a year later he already had $ 1.6 million! Simply stunning success!
In an interview, Timothy Sykes described his trading strategy as follows:
“Mostly I trade short stocks of medium and very small companies, although sometimes I trade long. There is amazing liquidity and huge volatility in this market segment. I believe that this is the least explored part of the US stock market, where there is a lot of trading opportunities due to the fluctuations in the prices of these securities.
In 2003, Timothy founded his hedge fund, which successfully existed for 2 years. After 3 years, the authoritative exchange publication TraderMonthly includes him in the list of the 30 most successful traders who are under 30 years old.
In addition, Sykes appeared on the Wall Street Wars show and wrote the book American Hedge Fund: How I Made $2 Million, which was a huge success with novice traders who dreamed of repeating the path of Timothy Sykes.
On one of his websites www.timothysykes.com, he exposes his own trades with explanations of what tools he uses and what profit he makes.
Why would he? Timothy Sykes is absolutely convinced that for success in trading (as well as in other areas of activity) one should be as open and honest as possible. He is guided by this principle, teaching other traders the skills of trading.
Despite the fact that Sykes could retire a long time ago and live for his own pleasure, he continues to trade remotely on the stock exchange, organizes training courses, but does not forget to travel the world.
Timothy Sykes on key success factors.
- If a trade doesn't go the way I thought it would when I opened it, I try to close the position quickly and look for other opportunities.
- I try to trade undervalued stocks that show the most volatility.
- I am looking for liquidity in the market and I want to see many traders involved in trading, because they are the ones who open the way to big profits.
- I treat each of my subsequent trades as the last, waiting for the price at which I can not refuse the transaction.
- Patience and discipline are the keys to my successful trading, especially when it comes to trading penny stocks, which often result in false price movements.
- I block sources of unnecessary information as much as possible. According to statistics, analysts are right only 30% of the time, and 90-95% of traders who listen to their forecasts are left with nothing. In trading, you can and should rely only on yourself.
- Before you start trading with real money, you need to read as many trading books as possible and try to understand trading through specialized sites. Spend time and money learning, laying the foundation for your future success.