Last Updated on September 18, 2023
Timothy Sykes is an American entrepreneur, investor, and widely popular penny stock trader. He began in 2003 with Cilantro Fund, a hedge fund he founded using the capital he had gained from trading.
Sykes has since established a successful career in blogging, investing, and teaching others to trade stocks.
In addition to his professional success, Sykes has shared his life story and sources of inspiration with audiences worldwide via podcasts, books, social media, lectures, and more.
With a net worth of over $15 million, Sykes has inspired many traders and investors to pursue financial independence.
This article will explore Timothy Sykes’ career, life story, net worth, and trading strategies.
Timothy Sykes’ Personal Life
Born in 1981 in Orange, Connecticut, Timothy Sykes is an American entrepreneur, investor, and penny stock trader.
He attended Tulane University in New Orleans and graduated in 2003 with a minor in Business and a degree in Philosophy.
He is a benefactor of “The Timothy Sykes Day Trading Award for the Talented,” a scholarship awarded annually to talented students from Tulane University.
Sykes founded the Timothy Sykes Foundation, which focuses on charity work, giving back to organizations such as Make-a-Wish Foundation, the Boys and Girls Club, and causes Sykes is passionate about.
In 2017, he made a $1 million donation to Pencils of Promise, a nonprofit organization providing educational opportunities to children in developing countries. His contribution helped build 20 primary schools across Guatemala, Ghana, and Laos.
By 2019, the Timothy Sykes Foundation had built over 50 schools and donated a minimum of $4 million to environmental causes. The foundation was renamed to Karmagawa Foundation.
Timothy Sykes’ Career
Sykes began trading at a young age while still a Tulane student.
One of the unique facts about him is that he turned $12,415 Bar Mitzvah Gift money into over $1.65 million within three years of trading penny stocks.
In 2003, he founded the hedge fund Cilantro Fund, with $1 million in capital from friends and family.
He ran the fund until 2007, when it collapsed due to heavy losses. He tried long-term investing instead of day trading but found it wasn’t his strength.
The Trader Monthly, a magazine that covers the lifestyles of hedge fund managers, featured Sykes as one of its “30 under 30” traders in 2006. The article, where he was featured alongside Luana Lopes Lara, brought him to the attention of the trading world.
After that, he founded several ventures, including profit.ly, a website dedicated to helping traders learn and improve, and the Tim Sykes Millionaire Challenge, an annual trading competition.
In 2008, he published the book “An American Hedge Fund: How I Made $2 Million as a Stock Operator & Created a Hedge Fund.” It documents his experiences, strategies, and challenges when starting his hedge fund.
Investimonials.com, a site dedicated to collecting online reviews of financial products, books, and services, was one of his most successful investments.
Sykes created “Miss Penny Stock”, a financial beauty pageant, in 2012. It was designed to educate the public and remove the stigma of trading penny stocks.
Timothy Sykes’ Net Worth
Sykes has a net worth of approximately $15 million as of 2022, primarily earned through his investments and trading activities. His assets include stocks, funds, property, and more.
Other assets include his online businesses and course materials such as educational content, books and trading courses.
Timothy Sykes’ Trading Strategy
During his trading career, Sykes has been continuously refining his trading style. He trades mostly penny stocks and has a strict set of trading criteria.
Sykes has written several books in which he explains his strategies.
He also hosts seminars and conducts webinars for aspiring traders, sharing his knowledge and experience.
Some of his trading strategies and advice include:
1. Work Out Your Entries and Exits
Entry and exit points are key for all. Identifying them allows you to enter and exit the market at the right time, minimizing losses and maximizing profits.
Before entering a trade, Sykes ensures he understands the stock and its fundamentals. If it doesn’t meet his criteria, he won’t trade it.
2. Let Volatile Stocks be Your Friend
Sykes is a big believer in trading volatile stocks since they can unlock higher returns with the proper risk management strategy in place.
He looks for stocks likely to trend higher, then tries to buy them on pullbacks and hold them until they reach his profit target.
He also looks for stocks in a longer-term uptrend and will continue to trend higher over time.
However, he highlights the importance of always being ready to exit quickly if the stock’s price shows signs of reversing course.
And it is worth noting that volatile stocks can quickly reverse course, so it is crucial to have rules in place when trading them.
3. Learn to Trade High-Volume Stocks
High-volume stocks can offer greater liquidity and have a high potential for short-term profits since they tend to move predictably.
By trading high-volume stocks, you can operate more comfortably as you can enter and exit the markets instantaneously.
Sykes also recommends studying a stock’s history and examining news events that might affect it.
He suggests studying volume patterns and using technical indicators to determine the best course of action.
You should also avoid getting stuck in an illiquid stock with low trading volume. This can cause you to lose money as you may be unable to exit the position quickly if the market turns against you.
4. Focus On the Technical Aspects
Technical analysis can help you identify entry and exit points and identify arising and dominating trends.
Sykes suggests studying the technical indicators such as support and resistance levels, moving averages, and price patterns to identify buying and selling points.
While technical analysis is effective for short-term trading, fundamental analysis is more valuable for long-term investment decisions.
5. Learn the Key Patterns
Patterns are a powerful tool for traders. They can help you identify short-term trends, support and resistance levels and potential trading opportunities.
Sykes recommends learning the most common chart patterns, such as double tops and bottoms, head and shoulders, wedges, and flags.
He teaches his students about patterns and trading strategies, which can help recognize trends and enter markets at the best possible times.
6. Pay Attention to Debt Levels
Debt can significantly decrease the value of a company, so it is important to pay attention to debt levels when trading stocks. You should continually assess a company’s debt-to-equity ratio before entering into any trades.
The debt-to-equity ratio is the amount of debt a company has compared to the amount of equity that it holds.
If the ratio is too high, it could be a sign that the company will struggle financially. Therefore, ensuring that the debt-to-equity ratio is acceptable before investing in any stock is essential.
Takeaway: Trade Like a Pro with Timothy Sykes’s Trading Tips
Trading stocks can be a lucrative way to make money. You can boost your chances of success with the right strategy and knowledge, including by following Timothy Sykes’s advice.
He recommends learning to trade high-volume stocks, focusing on technical analysis, learning how to recognize key patterns, and paying attention to debt levels when trading.
