Trashy Stocks

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I was by far the worst stock trader I know or have heard of.  That is why I trade foreign exchange.

However, I do a few stock trades from time to time and there is only one strategy that I follow, Tim Sykes penny stock strategy.   I know what you are probably thinking about penny stocks, this is probably some sort of scam right?  Well decide for yourself…

Tim took $12,415 of his Bar Mitzvah money and turned it into an audited pre-tax amount of $1.65 million and started a hedge fund.

Tim readily admits that his strategy isn’t scalable and it is risky (like foreign exchange) but it does work and he isn’t afraid to show the world how it’s done.  He is so sure that his strategy works that he is duplicating his Bar Mitzvah results by trading a $12,000 account up to $1.65 million.

He documents all of his trades in this account in his blog and has excellent results so far.

The best thing about this strategy is that it makes sense to me.  There are people who artificially pump up these penny stocks and if you can get some clues as to when they are being pumped and when they are being dumped then you can profit handsomely.

The great thing is that even though these are risky stocks, you can pretty much only lose what you put in.  For example, if you trade a stock that is $0.50 per share and you trade 100 shares, the stock could go to zero.  That could happen.  However you know for sure that all you can lose is $50 plus commissions.

I don’t focus on this strategy too much because of the scalability but if I see a blatant pump and dump, I jump on it and have had good results.  It’s a fun strategy to trade and it doesn’t take too analysis.  Don’t take my word for it, check it out here: