WHY THE TIMOTHY SYKES MILLIONAIRE TRADING CHALLENGE IS NOT A SCAM

Timothy Sykes, also known as Tim Sykes, introduced the Millionaire Trading Challenge in February 2011. This was done to test his trading theories which were geared towards making an average person a millionaire - something he has achieved twice over. Tim Sykes's story goes way back to his college days at Tulane University, where he converted his Bar Mitzvah fund - $12,000 plus - into $1.65 million. Using the same initial amount, he re-enacted another trading success in 2008, proving that he needed not a substantial capital base to earn a fortune in the stock market.

Tim has taught several students of his this awesome trading strategy for several years. This strategy entails shorting penny stock pump-and-dumps, otherwise known as P&D. He searches for penny stocks that are extremely worthless. An average penny stock trade below $5 per share. These P&Ds are promoted by phoney companies with no profits, revenue, and real operations. These penny stocks are pumped by promoters who in turn get paid and receive shares of stock. Thus, this creates a temporary spike in the stock price as they plan to dump the stocks at higher prices to exit the market. Depending on how good the promoters are, some investors are fooled to believe the buzz and get into the market early; hence, increasing the value of the stock price. With no real technical support, these companies make almost no revenue or profits. The price of the stock responds to the promoter's pump and dump in the company.

Timothy Sykes monitors these touted worthless stocks - observing the pump and short-selling the dumps. By shorting the stock based on the fall in its price, he realizes profits. The stock shares that are being borrowed are sold at a high price and later bought at a lower price to replace the borrowed shares.

The Millionaire Trading Challenge is more of a study course than a challenge. There is a plethora of information available for newbies and seasoned traders alike. Tim's basic trading strategy involves shorting pump and dumps. However, he enlightens his students on various ways to profit from the stock market. As a new trader, you can also get to know more about how to short-sell pump and dumps. Nevertheless, one of the challenges that may be faced by new members on the program is the ability to go through the exhaustive lists of materials available there. With over 6,000 video lessons in the video library, 27 trading DVDs, 60 video introductory course, live webinars, news alerts and watchlists, your mind will be totally boggled. There is no linear path to learning on this mentorship program. You just have to go right in, taking it one step at a time, observing everything you see and learn till they all fall in place. For newbies, the best piece of advice would be to watch the videos first. By joining the challenge, you are sent 60 emails containing links to past trading videos. That sounds good, but you need more than that to get acquainted with the program and start of a trading career.

Once you are done with the email-linked videos, you can commence with the DVDs - starting with TimFundamentals and PennyStocking (both Part Deux). There are a lot of videos online, so it may be confusing knowing where to commence. Once you've been able to have a solid grip on how the penny stock market works, you can then start trading.

Here are some tips to take home from Timothy Sykes:

• Do not try to fit trades into your daily timetable. In cases where you need to be away from your computer almost all through the day, ensure that you exit all opened positions prior to leaving.

• On Fridays, the stock prices tend to be higher as a result of momentum buying, breakout and short covering.

• Trading is a competition. Ensure that you stick to any opinion you form as long as it is proven to be correct or profitable and then move or reverse on the following play.

• In monitoring a possible short, enquire from your broker in advance to make sure you have shares available at your disposal to borrow.

• To get the best out of your trading experience, you need to put into memory the SOLF interactive stock chart, which includes the intraday and weekly chart patterns. Using this chart pattern, Tim Sykes made over $1 million shorting penny stocks. Regardless of the company involved, there is always a unique story to all of them. However, only around 1% of them ever perform much. The secret lies in shorting into strength when it seems to diminish intraday.

• It is advised that you do not create schedules for other things during market periods if you want to get the best profits.

• Do not trade when in a sleepy-like state, as you are bound to make terrible mistakes.

• Understand who you are and what works best for you.

• For corporate management, you need to build your business (especially when it is a publicly-traded company)  to the point that it becomes a profitable system that will attract and retain shareholders. All those company goals and visions do not count if you do not have a profitable corporation.

For investors, a stock's performance is more valuable than its company's story. Non-profiting stocks are not worth taking regardless of whatever captivating story the company has to offer.

• The reaction of the market is more important than your personal reactions to the market. Irrespective of how good a company's story maybe, if the market doesn't react to the company's stock, then you should not consider getting in.

• As misleading as being optimistic in the stock market may be, do not underestimate it.

• In cases where the market price movement contradicts your analysis, do not try to force profits to align with such an analysis just to prove a point. There are days where your predictions would be right and your trades wrong. You just need to accept it, rather than to resolve to nonconforming trades. The outcome of such is a significant loss.

The Timothy Sykes's Millionaire Trading Challenge is a program for those who are determined, focused and committed to becoming successful traders. Remember, success is not created overnight - you need to put in a lot of effort to realise your trading goals. If you wish to get started with this mentorship program, please visit this link for more information: Timothy Sykes Articles