Millionaire Tim Sykes Wants To Show You How He Made His Fortune From Just $12,000
(Kitco News)Â -Â Tim Sykes, known for turning $12,000 of his bar mitzvah money into millions, now tells his students that taking profits early is what makes him successful.
Sykes took the money given to him by his parents and grew it to $100,000 by his senior year of high school and $2 million before the end of college. Now, the sum is at at an impressive $5 million. For the last ten years, he has launched services to teach aspiring traders and pass on his tricks of the trade.
His strategy revolves around picking penny stocks and selling his investments as soon as they turn a profit.
“I usually take a third or half of the profits, so with penny stocks, they’re so volatile, you don’t need to pick the exact top. Too many people get overly greedy, they go for home runs. I want to teach people to bring it down, take singles, a few hundred dollars a day adds up, that’s my secret,” Sykes told Kitco News on the sidelines of the Vancouver Resource Investment Conference.
Sykes said that the age of the internet has changed the game for traders, and his teaching program aims to educate traders on how to navigate stocks with so much information available to the public.
“The internet has changed everything. Jordan Belfort, The Wolf of Wall Street, that’s what everyone thinks with penny stocks, but that was pre-internet. You didn’t know which stocks were good, you didn’t’ know how to research everything. You could do a Google Street map view of some of these companies and they’re based in barns, based in apartments, you have the cellphone of the CEO, they’re not legit,” he said.
On mining, Sykes noted that many mining stocks, especially in the junior sector, have not been performing well and are not showing technical signs of improvement.
While some miners have been performing better than others, overall, the VanEck Vectors Gold Miners ETF (GDX) climbed 3.5% year to date, outperforming the gold bullion, which gained 2.4%.