Timothy Sykes Timothy Sykes is someone I have been watching for a little while now.
Timothy trades stocks, but not any that you've heard of. He trades Penny Stocks to the tune of triple-digit returns.
Penny Stocks have traditionally been considered a risky investment because their low, low price means they’re prone to sharp swings in value. That’s “risky” before credit default swaps, collatorised debt obligations and mortgage backed securities gave new meaning to the word. While the world’s bankers have been licking their wounds, Timothy has been using Penny Stocks, his razor sharp wits and his Bar Mitzvah money to make himself a millionaire.
The concentration, attention to detail and guile required to make money from Penny Stocks should not be underestimated. Prices move fast and if you don’t know what you’re doing you can lose your stake quicker than you can say “taxpayer-funded stimulus package”. Timothy, though, does know what he’s doing - having turned $12,000 into a whopping $2,000,000 before he’d even graduated from university.
This kind of savvy reminds us of successful online auction punters like those over at MadBid who were so good the site’s boss had to introduce limits on the amount of times users could win: they were too good for the market.
Fortunately for Timothy, there are no limits to what he can make, and since November 2007 he is up 475 per cent. We’re yet to find our first online auction millionaire, but some of the more skilful players have picked up must-have gadgets, cars and cash for a fraction of their retail value.
Briefly, Timothy ran his own hedge fund, and from that experience he wrote a tell-all book – An American Hedge Fund - about the world of fast-paced trading. In it he has a cutting message for the financial establishment: "I would like to thank the thousands of inept corporate management teams … pump-and-dumpers, market manipulators...for your endless scheming and undying greed, without which my fortune would never have been possible."
So, what can online auction fans learn from Timothy, the Penny Stocks Millionaire? I think it’s to keep your eyes on the prize and to perfect your tactics. Who knows, perhaps you’ll be the next online auction aficionado to get a call from MadBid’s boss wanting to know your secret - it's happened before.
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