Winning with Penny Stocks? This Might Be Why Not…
Dear Penny Stock Millionaire,
Tim Sykes, millionaire mentor and trader here.
I’m coming to you from one of my “quarantine villas.”
We’ve been moving around a little bit just because there’s so much craziness going on. I’m actually trying to find a better gym. I’ve put on a few pounds during this quarantine just because I’m not out and about. So it’s been a little bit of a different lifestyle for me.
But, there’s a silver lining.
Even though the quarantine sucks…
Even though the world is a scary place…
You can use this time to learn how to really make money from home.
I know that’s kind of like scammy sounding. “Make money from home!”
But while you’re home quarantined, you might as well capitalize on it.
My students and I just finished a record month.
If you study, you cannot only survive this volatile market, but also thrive in it. There are specific opportunities in this kind of market.
Right now, potential vaccine plays are opportunities. So are companies that make masks or companies that make gloves or disinfectants. Pretty much anything related to the pandemic.
And after the pandemic, there will be another hot sector that will take over in the next few months or years.
We’ve seen this in the past: Whether it was crypto, or weed stocks, or Chinese stocks, oil stocks, low float stocks, shipping stocks, biotech, nanotech, Y2K… the list goes on and on.
You find that every now and then there are these ridiculous niches and patterns that just take over the market.
And if you study and if you’re ready, you can really capitalize on them.
And that’s what my students and I are doing.
It’s not like we knew this pandemic was going to go global. I was posting about the Coronavirus in January so I was early with that. But I thought that it would just be contained in Asia. I’m not a medical expert, so I didn’t know how big this was gonna be.
But I did know that there was a risk — especially with the stock market at all-time highs.
It’s not like I said to myself “Oh, I know this pandemic is gonna be huge,” or “I heard the people are shorting the S&P 500.”
No, I didn’t do that. I don’t trade the big companies or the big indexes.
I really focus on these small niches in the market. I’m trading market inefficiencies created by market volatility.
For example, back in the year 2000, when I was making my first million, I was buying companies that just added dot com to their name.
It was the stupidest thing. I remember Sportsman’s Guide, it’s a company that sells camping gear. They changed their name to sportsmansguide.com and the stock quadrupled. Not all in one day, but over a few days.
And that happened dozens and dozens of times.
Remember the weed hype boom? A lot of companies created little subsidiaries or they bought companies in the weed space.
And they were creating different kinds of weed or different strains. And those stocks tripled or quadrupled, within a few days or a few weeks.
Same thing with the crypto-mania. All someone had to do was come out with a new coin or find some angle with the crypto boom and your stock would triple or quadruple.
Are you seeing a pattern here?
The same thing is happening here with these Coronavirus stocks.
There are a lot of biotech companies out there or biotechs that are looking to raise money.
So what do they do?
They start talking about how their drugs or what they have in development can be applied to the Coronavirus.
I saw a company that makes some kinda drug for the inflammation of the knee.
And they’re saying that, you know, the Coronavirus is very similar to this so we’re gonna adapt our knee inflammation, anti-inflammatory drug, for the Coronavirus.
And the stock spiked.
And I remember thinking, “Huh, what are these guys doing?!” It was crazy.
But again, this is a pattern. I remember back in the crypto-mania the same thing happened. There was a Long Island Iced-Tea company and they came out with a crypto.
Kodak came out with Kodak Coin, which eventually bombed too, but the stock quadrupled when they announced it.
So you need to learn how this stuff works. And of course, I’m explaining it in an overly simplistic way just in this article. But you’ll see more of the intricacies the more you study my material. And how to spot these stocks every day.
There are so many stocks moving. I made nearly $50,000last month. Not because I had any big wins… but because I was making a thousand here, and $500, $600 or $2,000 here and there.
Sometimes I’d make a few thousand… other times I’d lose a few hundred. And it added up to nearly $50,000.
I donated it all to the great charity called Direct Relief. (Here’s a link to Direct Relief. Like I was telling you in my Birthday issue last week, I encourage you to give back, especially when you’re doing well. I donate all of my trading profits so that you understand that I’m not in this for trading profits. I trade with a small account in order to teach.)
I wanna teach you the process. And during turbulent times, during world crises, during volatile markets, during a hot sector or a hot niche, there are so many opportunities and it blows my mind.
Tim Grittani, my top student, who started with $1,500 is now closing in on $11 million. That’s not a typo. He made over $700,000 last month. And he shows every trade on our profit.ly site. We don’t just show screenshots like some fakers, you know?
They show their end of the month screenshots or end of the week screenshots.
No, we show every single trade. And Tim Grittani didn’t make $700,000 on any one trade. But he did make a few hundred thousand dollar trades.
Look at mask maker, APT — it went from $3 to $40.
Tim Grittani was in, I wanna say, at $10 and out at $18. So didn’t take the whole move but he took a good chunk.
Look at INO, too. When that was spiking, he was in around $10 and out, I think, around $15.
I was in INO in the $9’s and I was out in the $10’s. I don’t necessarily have the same patience Gritanni does. But that’s OK. You get to choose how aggressive you wanna be.
But at least learn the patterns. Learn what stocks are moving.
I still get TOO MANY messages from people trying to guess about, “What is Delta gonna do?” or “What’s Carnival Cruise Lines gonna do?”
Listen, don’t play guessing games. Okay?
That’s not going to make you wealthy anytime soon.
You will not get rich that way.
You might be entertained…and you might like the action.
And look, maybe the way that I trade, the way that my top students trade, it might not be fun.
Some days we don’t even trade. When there are no great plays we don’t trade, you know?
Right now, if anything, I think I’m over-trading a little bit. Because there were better plays like a week ago or two weeks ago, when the virus was really growing fast.
But now, we’ve flattened the curve a little bit in some countries, thankfully. As a consequence the stocks aren’t spiking as much.
That’s another lesson. For every hot sector or hot niche, it’s not just, “Oh, it’s hot for a year.”
There’s different stages of a hot niche or a hot sector. And right now, we’ve kinda cooled off a lot of the low priced stocks that were trading at one, two, three, five, 10 cents a share, aren’t spiking as much.
Before, DECN went from like two cents to like 25 cents. Doesn’t sound like much, but that’s 12 times your money.
PCTL was running, NBDR was running. I made a few hundred to a few thousand dollars on each of those.
Now, however, those stocks really aren’t running that much.
LUVU is a new low price stock. I tried to buy that recently, barely budged on their Coronavirus news.
So you have to learn the intricacies and you have to learn the nuances.
It’s not as simple as you want it to be but it is more predictable if you focus on the right indicators.
Recognizing big percent gainers, recognizing first green days on OTC runners, recognizing the difference between a good and a bad press release — like something that has legs and something that’s meaningful versus something that’s just hype.
Learning these things is what it’s all about.
You have no excuse not to study — especially during quarantine.
Preparation is key.
So, you wanna know what the next hot stock pick is?
Find it yourself.
All my top students are self-sufficient.
They don’t follow me.
They don’t follow my alerts like robots.
You should never follow me or follow anybody alerts word for word.
You should use them to learn the process yourself, okay?
The only reason why I alert. It’s to help you see what I’m seeing in real time, okay?
I write a whole paragraph of analysis and explanation.
A lot of services or chat rooms just say, “Buy this ticker,” because they want everyone to buy.
I never want you to follow any of my alerts like that.
I ultimately want you to learn the process on your own.
That’s why I write the freakin’ paragraph with my whole thoughts and my goals and my risks. Sometimes the stock has already moved by the time I take to write the paragraph or two.
But I do it because I want you to see that this stuff is real and it’s replicable.
I’m not that smart. I’m not that good at math. But I know these patterns.
I can’t say it enough. This is why I record training videos for my paid up subscribers… and send hard copies of The Complete Penny Stock Course which is nearly 400 pages long.
So you can study and become better.
So, please stay safe and study. And use my resources properly and responsibly so you can become self-sufficient and learn how to profit in these volatile times.
Talk with you tomorrow,
Editor, Penny Stock Millionaires