• Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Decoding Markets

  • Access All Areas
  • Courses
  • Free Book
  • Resources
    • Best Books
  • Blog
    • About
    • Free Class
    • Top Posts
You are here: Home / Opinion / How to buy penny stocks like Tim Grittani (and lose your shirt)

February 8, 2014 By Joe Marwood 15 Comments

How to buy penny stocks like Tim Grittani (and lose your shirt)

Penny stocks. We have all heard of them. But very few of us know exactly what they are or where to buy them. The very thought of them conjures up different images for different people. For some its huge wealth and for others its huge risk. For me, its huge spreads. i.e. the costs of trading them are normally so high that it’s just not worth bothering.

Take a look at this article from CNN. Apparently, Tim Grittani turned $1500 into $1 million in just three years (following the strategy of a trader named Tim Sykes) and there’s even a photo of him to prove it. But wait, just one photo? Are we to believe this unbelievable rags to riches story with the evidence of nothing but a picture?

CNN IMAGE
Courtesy of CNN courtesy of Millionaire Media LLC

No other verification has been given for this tall story, no brokerage statements no bank statements, nothing. Yet this article has managed to garner 3000 total shares, 1733 comments and it is one of the first hits on Google for the search term ‘Penny Stocks’. God knows how many page hits (and advertising revenue) that is a month…

The photo itself is courtesy of Millionaire Media LLC, which appears to be Sykes’s company, but isn’t it a strange company name for a man who actually is such a successful stock millionaire? Seems rather ‘salesy’ to me.

Is this how to buy penny stocks?

But what is even more irritating is that the article gives absolutely no clue at all as to how to buy penny stocks and how to make money from them. According to the article, Grittani learnt his tactics off the internet from Sykes and succeeded because he put in god knows how many hours every day into learning how to trade.

I’m sorry but isn’t that always the way? That someone got somewhere because they worked hard, harder than anyone else, and because of that we don’t need to explain any more about it or explain how to buy penny stocks? It’s convenient.

The truth is that penny stocks are a losing game most of the time. The spreads are so wide you’re better off going to the casino and playing craps. Unless, of course, you have inside knowledge or an edge that sets you apart. But this article doesn’t tell you any of that, it tells you nothing about how, where or when to buy penny stocks and gives not a shred of information about either of the traders away (a quick search also reveals little apart from some dated looking blogs that looks more like placeholders than anything else); Even if it is true, the success could quite as easily have been down to luck alone. How are we to know based on this factless piece of journalism?

It’s for these reasons that this article should be dismissed, it tells us nothing of use, all it does is generate page views, because, you know, we all love to hear a get rich quick tale that works.

Timothy Sykes could just as easily be Jordan Belfort (wolf of Wall Street), just how are we to know?

Check out the Resources page for a full list of brokers, software, books and blogs.


Thank You For Reading

joe marwood profile pictureJoe Marwood is an independent trader and the founder of Decoding Markets. He worked as a professional futures trader and has a passion for investing and building mechanical trading strategies. If you are interested in more quantitative trading strategies, investing ideas and tutorials make sure to check out our program Marwood Research.


Disclaimer

This post expresses the opinions of the writer and is for information or entertainment purposes only. It is not a recommendation or personalised investment advice. Joe Marwood is not a registered financial advisor or certified analyst. The reader agrees to assume all risk resulting from the application of any of the information provided. Past performance, historical or simulated results  are not a reliable indicator of future returns and may not account for real world settings. Financial trading is full of risk and margin trading can lead to financial losses totalling more than what is in your investment account. We take care to present accurate analysis but mistakes in backtesting and presenting of analysis regularly occur. Please read the Full disclaimer.


Comment Policy

Thank you to everyone who takes the time to leave a comment. Your feedback, constructive criticism and identification of mistakes is welcome. In order to concentrate on work I may not have time to respond to all comments.

Filed Under: Opinion Tagged With: finance, penny stocks, shares, stock market, stocks, trading

Recommended Educational Resources:


  • Discover New Trading Strategies
  • Learn Japanese Candlesticks (Free)
  • Mental Models For Trading (Free)
  • Indicators For Amibroker (Free)
  • Tools For Options Traders (Free)
  • Historical Data For 8000 Stocks (Free)

Reader Interactions

Comments

  1. Carl Ames says

    May 20, 2014 at 10:40 pm

    “But what is even more irritating is that the article gives absolutely no clue at all as to how to buy penny stocks and how to make money from them.”

    Come on— do you seriously expect a news article to go into any depth or detail about “how he did it”?

    When you see a news article about a newly completed office building, do you expect the article to go into detail about how the foundation hole was dug, how the concrete was poured, how the steel frame was erected, etc., etc.?

    There is a considerable amount of information about Sykes available– if you’re not too lazy to look for it and read it. For instance:

    https://www.goodetrades.com/2009/08/the-truth-about-tim-sykes-from-a-former-critic/

    Reply
  2. jbmarwood says

    May 21, 2014 at 12:07 pm

    Hi Carl

    I’m still not convinced he is anything more than a good salesman but thanks for the link and comment.

    Reply
  3. Carl Ames says

    May 26, 2014 at 8:06 am

    I’ve done a lot of reading about him, mostly out of sheer curiosity, and I’ve watched several of the videos on his web site. He often does come across as a cocky, arrogant twit who is “all talk.” However, Tracy Coenen, a forensic accountant and fraud investigator, became sufficiently convinced that his method works that she signed up for his “millionaire challenge”:

    http://www.sequenceinc.com/fraudfiles/2013/04/timothy-sykes-millionaire-trading-challenge/

    Also, in my readings, I’ve noticed that the people who disparage Sykes are those who haven’t actually tried his method. Now, I realize that it’s not necessary to try something to know it’s B.S.– for instance, I don’t have to get into an MLM to know that MLMs are B.S.– but when all the criticism is coming from people who haven’t tried his method and from “journalists” who are trying to stir up flak by “proving” he’s a fraud, that’s another thing. Tracy Coenen was contacted by such a “journalist”:

    http://www.sequenceinc.com/fraudfiles/2014/03/more-on-the-tim-sykes-millionaire-trading-challenge/

    Finally, I have my own method for trading stocks, and from what I can tell, it’s somewhat similar to Tim’s method, except that I don’t do day trading or target penny stocks– although some of my trades have been in penny stocks. My method worked for me, although it would probably horrify a long-term investor like Warren Buffett– so, based on my own experiences, I can see how his method *can* work if one applies it diligently and CAREFULLY and isn’t trying to make a big “killing” or get rich overnight.

    Reply
    • JJ says

      June 19, 2014 at 8:28 pm

      Basically it seems Tim Sykes method is if the stock does what you want stay in it, if it does not get out. I can see how this could work over time. There will be losses but small losses. The wins should be bigger than the losses. Take any chart you find, and try it. I tried many charts, it seems to work, but not over night. It takes time. Charts I tried: TSLA, Plug, PAL, LQMT, AAPL, and many more. This seems to work with any price range and any account, but the trading cost can eat you alive, hence the minimum trading account. Now these test do not include shorting, just long positions. This method could be compared to opening a business, if the business is not profitable, close the door and open another one, if that one succeeds, leave it open for as long as it is profitable. Verdict: It works, but why pay for it?

      Reply
  4. jbmarwood says

    May 29, 2014 at 2:39 pm

    In the interest of fair discussion, here’s a discussion with Tim Sykes on Reddit: http://www.reddit.com/r/IAmA/comments/23og03/i_am_timothy_sykes_ask_me_anything/

    Reply
  5. Daniel says

    October 25, 2014 at 5:51 am

    Only a photo ?
    You can youtube him and see a full audio interview and him speaking at a seminar.

    You can see all of his trades from 0 to $2m account here: http://profit.ly/user/kroyrunner

    Stop hating, start trading.

    Reply
  6. JB Marwood says

    October 25, 2014 at 9:59 am

    Hi Daniel

    Thanks for you comment. I would not class profit.ly as a reliable resource as trade results can easily be manipulated. It’s also another one of Sykes’ affiliate products.

    Regards
    JB

    Reply
  7. Chris says

    December 18, 2014 at 11:01 am

    JB,
    How much did you spend on college? What is your weekly salary now?

    Reply
    • JB Marwood says

      December 18, 2014 at 11:17 am

      Hi Chris, I’m not sure what the purpose of your question is so I’d prefer not to answer it.

      Reply
  8. bon says

    January 4, 2015 at 12:18 pm

    Tim Grittani has an entire blogspot regarding his methods, his trades and some failures, too. I’ve taken the time to review Sykes. I’ve chosen not to sign up with Sykes because, simply, it is not cost-prohibitive. He has a valuable service though his character is often brought to light. His character has nothing to do with an ability to trade well. He even states this very clearly. He just laughs at everyone too shallow to see the difference. He laughs because he’s rich and can do so. That’s why people hate him.

    Reply
  9. BigLou says

    May 25, 2016 at 2:08 pm

    JB looks like you have been trolled by Timmyboys legion of sheep followers. Sykes and his crew are nothing but huckster shills who do not really trade make money off the subs they need to have in order for his front loading schemes to work. Ask any of them for a redacted bróker statement proving how they trade… silence is what you will get.

    Reply
    • JB Marwood says

      May 27, 2016 at 7:18 pm

      I think you may be right

      Reply
  10. Anonymous says

    January 15, 2017 at 6:28 pm

    this whole post is fucking bullshit! Watch Tim Sykes HTMM 35 hour Dvd then you trolls might learn something.

    Reply
    • JB Marwood says

      January 18, 2017 at 10:10 am

      I wouldn’t watch Tim Sykes for one hour let alone 35. He talks too much 😉

      Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

Decoding Markets

We build trading strategies that give you more profit with less stress.

joe marwood beach

Popular

Can You Make Money With Sentiment Analysis?

The System Traders Feedback Loop – Don’t Get Stuck In The Back-Testing Spiral

Performance Of Our Trading Systems In 2020

Simple Algo Trading With Alpaca And Streak

How To Screen For Stocks With Norgate Data

How To Build A Trend Following Trading Strategy

Financial Disclaimer

Financial trading is risky and short-term trading is hard. You can lose money. Joe Marwood is not a registered investment advisor and nothing on this site is to be regarded as personalized investment advice. Past performance is not indicative of future results. Data errors and mistakes do occur. Please see the full disclaimer.

Footer

About The Author

Joe Marwood is an independent trader and investor specialising in financial market analysis and trading systems. He worked as a professional futures trader for a trading firm in London and has a passion for building mechanical trading strategies. He has been in the market since 2008 and working with Amibroker since 2011.

Joe Marwood Profile PIc

Recent Posts

  • Contagion In Crypto
  • Can You Predict Cryptocurrencies?
  • Do Sell-Side Analysts Know Better?
  • Using Fundamental Data To Improve Momentum Investing Strategies
  • 5 Economic Indicators That Matter To Investors
  • How To Make Money In REITs
  • Follow The Leader To Make Money In Stocks
  • Can You Make Money From Short Seller Reports?

Categories

Search

Topics

  • Amibroker
  • Investing Books
  • Mean Reversion
  • Stock Trading Strategies
  • Technical Analysis
  • Trend Following
  • Quant Trading

Privacy policy | Contact | Disclaimer | All Rights reserved. Decoding Markets.