Why Traders like Tim Sykes annoy me
OK... i get it... as i mentioned before in my last blog post, I'm a Trend Trader.... I have a way of doing things, and I don't necessarily agree with the Day Trading approach - that doesn't mean I don't respect the Day Trading game - I know it's tough (I've tried) and I know that the margin for error is very small, therefore i have nothing but respect for the likes of Mr Sykes and his penny stock army or those Day Traders who ARE able to turn a healthy profit.
My issue with Mr Sykes and others like him is that they are selling an illusion.
The illusion is sold on the basis that by Day Trading this method, you have the ability to buy Ferrari's (which is obviously lovely) - but to the average Joe who is looking to trade his method, it is inherently unachievable and this can be backed up by his track record.... (at least if you follow his various social media accounts).
Mr Sykes has made a bit of a fortune using Social Media as a tool for communicating the lavish lifestyle he's made for himself which he then uses to sell to the masses - the opportunity to be just like him, which he correctly charges a premium for. Now lets say conservatively that he has, over the years charged $5,000 to 5,000 Students - we're looking at a nice little sum of $25,000,000 for tuition alone to teach a method of Trading which is super risky and where (by his own admission) - he has created only a handful of millionaires. He tells his students to study hard and that his lifestyle is achievable.
For the record, Mr Sykes has NOT made his money Trading penny stocks, he has made it through entrepreneurship and selling a product (him) to the masses. Simply put - the chances of you reaching the level of lifestyle that he promotes is not, I repeat NOT achievable (if you consider that 95% of Day Traders lose money).
Now lets consider his army of willing students, who I have no doubt are incredibly motivated to achieve success. If those students were to concentrate on a far more profitable style of trading with the same work ethic, there is no doubt that in the current market and the way the market has performed the last 2yrs - if you had his estimated 5,000 Students trading a more Trend based style - there is absolutely ZERO doubt in my mind that the number of millionaire students would be in theseveral hundred range depending on individual risk tolerance.
Mr Sykes, whilst I'm sure is well meaning and a nice chap - is not good for those wishing to learn Trading. There are far easier methods out there and taking a long term approach on Stocks such as NVDIA ($40 to $180 in 18 months), Shopify ($20 to $120 in 20 months), Ferrari ($40 to $110 in 19 months) and Activision Blizzard ($30 to $65 in 20 months) would be far more profitable to those students than attempting to short penny stocks and pick tops and bottoms of price. It is absolutely mind boggling to me that he promotes this type of Trading, but i suppose if you can make $25m + from a loyal army, then why not.
There are hundreds of incredible stocks out there just like the stock mentioned above, and most Trend Traders have had an incredible time of it over the last 2yrs.
To the students of Tim Sykes - I've no doubt you're having massively mixed results - if you are - switch it up - what harm is there in learning a far easier style of trading that you only need to work a few hours a week?....... I made the switch 2yrs ago and have never looked back.
If you’re interested in education and you struggle with your trading results… we’d love to hear from you.