Timothy Sykes Review [Is It A Scam?]

Timothy Sykes Review: Tim Sykes wowed the investing world when, as a college student, he turned $12,000 into a multi-million dollar fortune.

He accomplished this by day trading penny stocks, often while he was supposed to be in class. By the time he graduated, Sykes had his own hedge fund, and he was well on his way to a successful investing career. 

Today, Sykes is still investing, but his main focus is financial education. He offers a variety of courses and materials to help others achieve financial success by trading penny stocks.

Membership is fairly costly, so the first step for prospective students is to learn more about Sykes’ history and successes before enrolling.

It’s also critical to understand the benefits and risks associated with trading penny stocks before experimenting with your hard-earned cash.

The Risks of Investing in Penny Stocks

Penny stocks aren’t very popular with financial advisors. Also known as small cap stocks, micro-cap stocks, nano-cap stocks, and OTC stocks, these shares generally trade for a per-share price below $5. The low price might be appealing to some investors, however it is often due to underlying issues with the organization. 

Companies like Cytodyne, for example, qualify as penny stocks with share prices under $5. This is a company with a billion dollar market capitalization but no sales (at the time of writing).

Very new companies may attempt to raise capital by offering stock, but due to their limited history, there is no demand. That can lead to very low per-share prices.

While the fact that they are new shouldn’t automatically disqualify companies from consideration, there are risks associated with such investments. The most pressing is the fact that many new companies fail for any number of reasons. Among others, occasionally a new product or service simply doesn’t interest consumers.

Alternatively, companies on the verge of bankruptcy might see their stock price fall into penny territory just before the entire enterprise collapses. Remember Enron? In 2000, shares hit a high of a high of $90.75. By November 2001, they were worth less than $1 per share, and Enron collapsed entirely in December of that same year. 

Finally, it is not uncommon for con artists to leverage penny stocks to defraud investors. One method is to create sham companies, then sell shares to unsuspecting investors. Once the market is tapped out, they abscond with the cash. 

Another method is known as “pump-and-dump”. Con artists buy penny stocks, then persuade others that the investment will net large profits.

If they are successful, demand for shares goes up, causing an increase in share value. Swindlers cash out their profits, leaving other investors to face losses when stock prices inevitably return to their true value. Alternatively, they short the stock when they know it will fall, collecting profits from declining prices. 

With that said, some investors have achieved impressive profits through trading penny stocks. Timothy Sykes may be the best-known example of this.

Timothy Sykes Penny Stocks

Timothy Sykes didn’t have in-depth education or experience in finance when he first started trading.

In one interview, he explained that his interest in the stock market began while he was in high school. His parents allowed him to invest $12,000 in Bar Mitzvah gifts, and within a year, his balance was up to $123,000. Another year later, he had earned $800,000. 

All of this was accomplished through well-timed trading of penny stocks – those that he was convinced could – and did – become breakouts.

Sykes has always had a passion for patterns, and his success has been due, in part, to his ability to see order within the larger chaos of the market.

While he relies on specific strategies to guide his trading decisions, Sykes has always put careful attention into adjusting his methods as his understanding of market behavior developed. It’s safe to say that his ability to adapt is at least as critical as his passion for patterns. 

One of the strategies Sykes hasn’t changed much during his years-long trading career is around discipline. That is to say, Sykes holds himself to a very disciplined approach to trading.

For example, he cuts his losses by getting out immediately when a particular stock doesn’t behave as expected – no exceptions.

In this way, he claims he has managed to keep his losses quite low, which appears almost magical to peers who dabble in the penny stock arena.

Sykes doesn’t take excessive or unnecessary risks with the highly-volatile penny stocks he trades, which benefits his bottom line results. 

Is Timothy Sykes Good?

No matter how you look at Timothy Sykes’ history, there can be no debate. He is very, very good at what he does.

From his start as a day trading college student to his current position as trader and educator, Sykes has amassed a small fortune, and he has helped many of his students do the same. 

If you are considering enrolling in Sykes’ services, keep in mind that your financial results depend on you as much as the quality of the educational material.

Day trading – especially when penny stocks are involved – is a meticulous, time-consuming process, and the only way to turn a profit is to pay attention.

Is Timothy Sykes Legit?

Timothy Sykes receives as much criticism as he does accolades. He relies on over-the-top advertising to promote his millionaire lifestyle, and some believe he draws in students by making “get-rich-quick” promises that he can’t possibly keep. 

One minor scandal that comes up in nearly every Sykes-related conversation involves a misleading statement he made in a 2006 interview. He said that his hedge fund Cilantro had been recognized as “the number one long-short microstock hedge fund in the country” by Barclay.

The implication, of course, was that he meant the well-respected British Barclay’s Bank. In fact, the endorsement came from a tiny Iowan research company named The Barclay Group. At the time, quite a few people believed that Sykes allowed the misunderstanding intentionally to raise his own profile and that of his hedge fund. 

Whatever you might think of his marketing practices, the fact is that Sykes has achieved legitimate success through his trading activity. Further, some of his students have increased their wealth substantially by adopting his strategies. 

Sykes makes an effort to improve transparency in the investor education community through a variety of projects. For example, Investimonials.com is a place for users to publish their reviews of anything investment-related. To date, the site has collected more than 10,000 reviews. This offers new investors and prospective buyers of the many educational tools and services for sale an opportunity to gather unbiased feedback before making a purchase. 

In addition to Investimonials, Sykes co-founded the site Profit.ly. He considers this project to be a public service, as it offers important stock trading information to investors at all levels of experience.

The site’s goal is to create an easy-to-access record of investing advice and guidance from a variety of sources. Among other things, this is another opportunity for new investors or those considering the purchase of educational materials to judge the validity of an investment trainer’s strategy before paying tuition or membership fees for the material. 

Finally, when considering the sincerity of Sykes’ message to current and prospective students, it’s important to keep in mind that he has made a visible effort to give back to the investing community and the world at large. He has spoken out against “pump-and-dump” scams and called attention to certain unethical trading practices. 

He has also contributed a portion of his wealth to the non-profit organization he co-founded, Karmagawa. Through Karmagawa, Sykes and his partners fund projects that serve underprivileged children, animals, and the environment.

The organization says it built 51 new schools and libraries, assisted more than 3,500 animals in need, and delivered nearly a quarter of a million meals to those facing food insecurity. 

So, is Timothy Sykes legit? It appears so, as much as anyone can be in the cutthroat world of financial services. Sykes makes a deliberate effort to increase the industry’s transparency, and he speaks out against the common frauds and scams that cost inexperienced investors big bucks.

If he occasionally exaggerates or goes a bit overboard in marketing himself, it’s to compete in a complex industry.

What is Tim Sykes’ Net Worth?

While Tim Sykes’ net worth isn’t exactly public record, a number of experts have estimated the figure based on what Sykes has disclosed, the likely profits generated from his investments, and the cost and projected profits from his educational projects.

When funds transferred to non-profit organizations are subtracted from his total wealth, Sykes’ total net worth is gauged to be around $15 million. That’s not bad for a self-taught day trader. 

Tim Sykes Blog

Tim Sykes does sell his educational services, but there is plenty of information available completely free of charge.

Sykes’ blog is an extensive library of tips and tricks that cover everything from getting started in trading to case studies that demonstrate what to do – and what not to do – when buying and selling penny stocks.

He generally features in demand topics like top penny stocks to watch this month. Or if you’re new to the trading strategy, you can find information on how to develop a penny stock strategy.

Overall, we found the content to be comprehensive, informative, and insightful. We also found helpful tips with references to the best penny stock brokers for example.

Timothy Sykes Review Summary

Overall, Timothy Sykes is widely considered to be an expert in investing, and he puts deliberate effort into passing his knowledge and experience on to others. While you have to pay for the more in-depth educational tools, materials, and resources, he offers plenty of information to new investors at no cost. 

If you want the advantages that come with in-depth coaching and training, Sykes’ service is one of the better choices. It’s costly, but no more so than other services in this space. The difference is that most users are confident that they are getting value for their money. 

As with any investment education service and the use of any strategy or set of strategies, success depends on your own efforts. Even the most effective strategies won’t help you build wealth if you fail to apply them consistently and devote the time necessary to see them through to fruition. 

A final thought – any stock market investment carries risk, and penny stocks are riskier than most. No strategy or educational service can legitimately promise good results, and there is always a chance you will lose your principal if the market takes an unexpected turn.

Use caution in any investment activity, and don’t put in more than you can afford to lose. Day trading penny stocks is not the right place for your retirement savings, the funds you set aside for your education, and similar. 

---

The author has no position in any of the stocks mentioned. Financhill has a disclosure policy. This post may contain affiliate links or links from our sponsors.