PennyStock Investing

As a single mom with a lot on her plate and haven't truly made it in trading, I know that trading is a whole lot more than just the mechanics of it. As one who now does not have much money to trade AGAIN, it's not really a shameful thing. I've heard it said that when we do not learn our lessons, they keep repeating themselves. Unfortunately, it's not as simple as Groundhog day where you get another chance to do the same day over and over again until you get it right.

Someone that has intrigued me a great deal is Tim Sykes. He really hit it big as a kid turning a small account into millions and then becoming a fund manager when he became an adult, but bit the dust. Now, for the past 3 yrs or so, he's been into pennystock investing and totally tauting this.

He seems to get on the nerves of a number of people and traders. Perhaps most real traders do not take pennystocks seriously and when I look at the penny penny stocks, they scare the dickens out of me. I can't find a definite pattern other than sheer utter chaos. I rely on technical patterns and if it looks like a Reeses monkey on heroin drawing the chart, that's pretty scary.

How do I feel about Tim? I think he's cocky, arrogant, obnoxious. But, there seems to be this lovable thing about him that attracts me to perhaps his will to thrive and to "show 'em"! Or, the "I'm going to prove you wrong" attitude. I can't say that I've extensively followed Tim, but I do admire his perseverance and his ability to be creative, go out on a limb, market himself after the blowup with his hedgefund.

I think it takes courage to publically bite the dust so hard and to come back somewhat crawling on your hands and knees, humbled, and to rebuild things, not expecting miracles, but doing things differently, learning from your past successes & failures, changing. Yes, Tim does have a big mouth. Maybe that's his personality. We all have our own quirks.

Looking at things with him, he gets a lot of criticism for all sorts of things like having a subscriber list, selling DVDs, and maybe having other monies to help fund things. There's probably more that he gets bashed for, but these are the things as of late that I've read. As I look at his results, he puts his trades out there for others to see, his results for each stock. One cannot deny the results. They are actual trades with actual profits & losses. He also says that he's not that great of a trader, but he does do some things that good traders do, I suspect.

It's smart of him to also capitalize on other ways to generate income, which he does through his website, subscribers, book, DVDs and whatever else he chooses. This is perfectly alright as this is a part of capitalism. I'm not sure why others bash him for this as there are many other people who run internet businesses also and it's perfectly alright for them to do so.

Too bad I didn't do this years ago, because if I had, I probably would still be trading at this moment as some of the pressure would be off me as trading being the only source of income for the kids and I. That's big pressure. However, that's not where I was then in life and was not opened to hearing about it. Thought all I needed was trading. Guess I was wrong. Hard lesson to learn.

One of the good things about pennystocks or stocks in general are once you own them, you own them and there are no expiration dates or time value to fool around with. Tim also seems to close his trades not looking for the homerun, rather just looking for 1 base at a time. If he needs to walk, he'll walk. He takes no shame in how he gets his profits. A bunch of small profits lead to big profits. Take your costs when your trade turns against you.

So far, Tim has published 112 trades' results with an 86% of his trades profitable. That's REALLY good. Better than my 80%. His net profits are $204,076 and net costs are $21,767.

Avg Profitable Trade = $2,125.79
Avg Costing Trading = $1,360.44

He keeps his costing trades fewer and smaller than his profitable trades. Sounds like a good trader to me. This isn't like he made 3-4 trades and he's on the winning side, but this shows a pattern of consistency with 112 trades and these odds. This is just for the first 1/2 of 2010. I'm excited to see how he will fair for the remainder of 2010. It would be so cool to see him be able to make $400K+ in the next 6 months, which would bring his net for 2010 to $600K+.

Well, Tim, if you're reading this. I'm all for you, minus the swear words. Hope you make millions and keep it.
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