This Millionaire Trader Is Creating "Clones" Through Education
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(Kitco News) - Tim Sykes, millionaire trader whose claim to fame was turning $12,000 of his Bar Mitzvah money into over $5 million, is now devoting his energy on creating "knowledge clones" of himself through teaching.
"This is why I love education. If you teach what you know, you basically create clones, like, knowledge clones," Sykes, the CEO of TLC Media LLC, told Kitco news.
Using a strict set of trading principles, Sykes created strategies that are meant to rectify many of the mistakes traders commonly make. Several millionaire students already follow Sykes’ methods, but teaching was never the goal, according to him.
"I didn’t know I was going to be a teacher. Ten years ago I started teaching, and that was just because my TV show ‘Wall Street Warriors’ was a hit and people started emailing me and asking me questions. At the time, I was just managing rich people’s money…it was boring, it was unfulfilling. Teaching has given me a new level of [having] a meaningful life," he said.
Sykes now trades with a small account, starting from $12,000 every year, donating any proceeds to charity.
"Education around the world is severely lacking. You could say that a lot of the world’s problems are caused by poverty; a lot of the violence and disease, so we’re trying to fix that. We have 52 schools with my charity so far. My goal is to build a thousand schools," he said.
On trading strategies, Sykes recommends trading only a few stocks you know well, repeatedly.
"You don’t need to be a mutual fund or hedge fund. Most people don’t have millions or billions of dollars, so you don’t need to be like 70% long, 30% short. I have one or two stocks at any one time, I trade like a sniper," he said.
Sykes also admitted that "trading what you know" is an old strategy that doesn’t necessarily work in today’s market conditions.
Other tips that Sykes gave was to avoid trading with leverage, scalping for too little profit at a time, and trading more than five times a day, unless you are a "degenerate gambler."
Sykes added that he avoids swing trading due to his negative outlook on the overall market. "It’s tough. After a ten-year bull market, I just don’t trust the overall markets, I just think that we’re on the verge of some big crash or something, but I’m just overly cautious," he said.