Penny stock trading from a self-made millionaire trader: Timothy Sykes
This has been considered by the experts and the millionaire trader Tim Sykes, that a new environment has been happening with a lot of people lately in the stock market industry. They don’t really understand trading and all the good and bad aspects of it, yet they are willing to invest big amounts in their business. Most of the times people get confused between two things the most, that is:
- When is there a good market to trade?
- When is there a bad market to trade?
Sometimes traders need extra patience and adjustment in their particular business because the market starts to perform slow. They get less profit along with less unique visitors or buyers, just like in any other business or industry. But among all this process, too many traders do not adjust or recognise the scenario.
Furthermore, most people prefer to invest less money into the shares and expect greater profit in return from their trade. Although this is possible, it is a bit riskier as well. But anyhow, for this reason, the best kind of stock in the market in terms of percentage gains alone is definitely penny stocks.
In this article, we will describe what penny stocks are along with its essential lessons that have been discussed and concluded from the Timothy Sykes Reviews. Tim Sykes is one of the best penny stock traders in the world right now who also conducts various virtual and physical training lessons. This will help our readers to learn penny stock trading from a self-made millionaire trader himself.
Before we begin, make sure to keep in mind that patience is the first and foremost step, not only in the trading industry but in every business. Tim Sykes believes that patience is the key that pays the most to a person and is significantly important for growth in the penny stock industry. Along with it, the most important requirement is to educate yourself in order to understand the business in a much better and practical way.
What is meant by penny stocks?
A stock that is created by a small firm and is traded for less than five dollars in the stock market is called a penny stock. These firms create stocks for the establishment of their businesses which helps them when the shares are bought and gets doubled. Penny stocks are also known as one-cent stocks and are traded between investors and firms under the range of five dollars.
Moreover, these stocks are the ones that could be traded daily or weekly through small exchanges, unlike the bigger ones that include Japan Exchange Group or the New York Stock Exchange. Penny stocks are traded easily over the counter through electronic transactions which are backed by the Electronic OTC Bulletin Board.
Here is an example of profit and loss through penny stock trading.
Suppose you bought 200 shares of around two dollars in total. You’re expecting the prices to get higher. Even if the price increases for one dollar, you will receive a profit of 100 extra shares.
But, what if the prices do not increase and the shares are about to expire?
Then, you are definitely supposed to sell them at whatever price the stock market suggests. This is considered a loss. But a bigger loss is to buy the shares from a company that is bankrupt. Yes, the shares of companies that are declared as bankrupt become useless. Also, the bankrupt companies are then supposed to pay their debt by selling off their liquid assets.
Although the range of penny stocks involves between one dollar to five dollars, most people do not invest in the shares of five dollars declaring them expensive and unpredictable. The reason is penny stocking is extremely risky and unreliable. If you can get your shares doubled, you can also get nothing in return, which is a loss and is completely worthless.
Learning to trade penny stocks: Guidelines from Timothy Sykes, a self-made millionaire trader
There are various tools that help people in the proper and effective trading of penny stocks. In addition to that, there have been several useful applications and software to keep track of the increased and decreased prices of the market. Almost all application software comes with tips and guidelines to follow in order for people to learn different markets and invest accordingly.
However, as mentioned above, traders need to make sure that penny stocks don’t lose their place and fast-growing pace in the trading industry, as it is making the market shaky. Not only penny stocks but the Bitcoin and wheat stocks also become down and slow sometimes. These stocks were considered to be hot stocks once, to buy and invest in.
Moreover, Timothy Sykes said in one of his training sessions that most of the time he focuses on becoming patient except for becoming aggressive because of the slow growth. There are days or weeks where trading becomes less and smaller which really frustrates an entrepreneur who becomes unable to follow a plan and achieve goals. But according to him, this is what being in patience mode means along with learning to adapt to the situation. In this way, a person comes to a learning phase and studies more by researching and planning.
Furthermore, Timothy Sykes described that there is never a good time to trade, it’s always about learning and giving the opportunities a shot. However, it is important to remember that trading penny stocks is not similar to trading any other normal stock. You can’t just dive in and expect rewards. There is a lot of research that needs to be done for becoming a successful penny stock trader.
Well, the conclusion of this article is to learn and educate yourself through various ways before starting penny stocking.
In addition to that, it is recommended to invest the funds that you can afford to lose. Getting in additional debt is also high-risk. What if you don’t get to sell them at the right time? What if you found out that you bought your shares from scammers? Actually, nothing. So, it’s better to stay on the safe side. That is why we concluded several beneficial ways of Tim Sykes to help our readers in planning accordingly and strategically.
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The material contained in this article is of the nature of general comment only and does not give advice on any particular matter. Recipients should not act on the basis of this article’s information without taking appropriate professional advice.