Uncovering the Timothy Sykes Scam: Is He A Scammer?

January 7, 2023

Uncovering the Timothy Sykes Scam: Is He A Scammer?

If you’ve started doing research about getting started with penny stocks, chances are you’ve come across the name Timothy Sykes.

He’s kind of a rock star in the penny trading world. He’s famous for having turned $12K of bar mitzvah money into nearly $2 million by day trading … which shocked his parents beyond belief.

These days, Sykes is not only a penny stock teacher and trader, but also a social media maven and serious philanthropist.

As a teacher/mentor, he runs a popular Trading Challenge and offers various educational videos/programs where you can learn his methods and develop your own career as a trader.

But as a new trader, is it really worth the time and money to pursue this kind of education? Do people really need what Timothy Sykes is selling, or is he just a scammer?

Let’s take a look.

Who Is Timothy Sykes, Anyway?

Timothy Sykes Trading Challenge Review

As you peruse the Timothy Sykes universe online and via social media, you’re likely to find plenty of photos of him in exotic locales, in flashy cars, or posing with stacks of bills. Sure, he’s got his trading laptop on hand in plenty of the photos. But it’s enough to make you wonder: who is this guy, anyway?

Here are just a few bullet points about who Timothy Sykes is:

  • He started trading in high school with about $12k of Bar Mitzvah money.
  • His parents gave him permission to use the money, figuring if he lost it at least he’d learn a big lesson.
  • Not only did he not lose the money, but he had earned over $1 million before he graduated from Tulane University.
  • He’s been featured on TV, most notably the show Wall Street Warriors.
  • He managed a hedge fund for a while. It didn’t work out in the long run, and he experienced some big losses and big frustration. It’s documented in his book, “An American Hedge Fund.”
  • After the hedge fund, he went back to his roots and began trading with a small account again.
  • After fielding many requests from would-be traders he decided to become a teacher.
  • His first DVD was published in 2007 and he hasn’t stopped creating trading related content since.

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How Does He Trade?

So how did this dude hit it big? By trading penny stocks. In spite of the name, “penny stocks” are really just low priced stocks, so they might include any stock trading for less than $5 per share.

Instead of just going long or short, he adapts to the market. So while right now he goes long more frequently, during different market conditions he might be a lot more short-biased.

For Sykes, it’s all about patterns and charts. He looks at things like price action and support and resistance first, but also considered catalysts and time of day. He has his own tool for assessing the worthiness of a trade: the Sykes Sliding Scale.

He typically doesn’t care about the companies offering the stocks in question. It’s all about the facts for him — if the chart has a pattern he likes, that is what will make him trade, rather than believing in a particular company or product.

Some big themes in his trading/teaching:

Trading transparency: Sykes is behind the website Profit.ly, where traders can show their stats and connect social media-style. He thinks that plenty of traders talk a big game but don’t have the numbers to back it up, and seeks to be different.

  • He posts every one of his trades publicly and offers commentary.
  • This means that he opens himself up to trolls, and some people are quick to pass judgment on his trades. However, he is quick to use both his wins and losses as teaching moments for his students.
  • No-BS attitude: If you’re looking for hand-holding, this probably isn’t the program for you. Sykes has a sort of East Coast pushiness, and he’s not afraid to speak his mind or call his students on their BS. So be prepared for a little tough love.
  • Constant contact: You won’t be ignored as a Timothy Sykes student. He’s a very responsive teacher. He regularly interacts with students via Profit.ly and via social media, and has good knowledge of his students’ goings-on and trades.

What Kinds of Plans Does Timothy Sykes Offer?

OK, so if you’re interested in signing on with Timothy Sykes, what kind of options do you have?

There are various tiers of membership and programs to choose from, depending on how much time and money you want to devote. But most options will include a mix of DVDs, online lessons, and alerts. Here are some of the different things you can access:

A Massive DVD Library

Timothy Sykes has released a LOT of videos. He has more than 25 DVD sets, some of which are by him, some by his most successful students like Tim Grittani.

Truth? Some of the older DVDs come off as a little outdated visually, but if you can get past the early aughts fashion and video quality, the content remains relevant and solid.

Sykes really shows what he’s learned about trading by looking at the past to inform the future.

With videos like “New Rules of PennyStocking,” “ShortStocking,” and “Trading Tickers” (by Tim Grittani), you really do learn a lot about trading.

Some of the most famous Sykes protégés report that they watched these videos over and over, so clearly there’s something to them.

The DVDs can also be purchased individually in the Profitly Store.

Profit.ly Plans

Profit.ly isn’t just a place to share trades. It’s also a resource with classes and chat rooms. There are various plans available.

The luxe plan is called PennyStocking Silver, and it costs $149.95 a month.

With that, you get access to things like access to TimAlerts, as well as Tim’s daily watchlist, live trading webinars, SMS/email/push trade alerts, trade commentary, and an app that’s compatible with iPhone and Android.

You’ll also get access to the fabled video library referenced above, and will have access to weekly lessons from Sykes and his students.

You can also get a pared-down plan called TimAlerts for $74.95 a month, which doesn’t have all the bells and whistles — for example, you won’t have access to the live trading webinars.

Are these plans a good value for traders?

If you’re a new trader and can’t afford to do the full Tim Sykes Challenge (more on that in a minute), these programs can be a great starting point.

Yes, you have to shell out some money, but think of it this way. If by spending some money you make better decisions in trading, it could potentially SAVE you money.

Annual subscription plans are available for these programs at a lower rate, too.

Tim Challenge

This is the big daddy, the crèmè de la crèmè of the Timothy Sykes educational offerings. If you want to become a penny stock trader à la Sykes, the Trading Challenge is the way to go.

It’s not cheap, but if you look around at other trading courses, you’ll see it’s actually a very competitive rate.

The money is serious, but so is the curriculum. As part of the Challenge, you get everything from PennyStocking Silver and a ton more, like 2–3 live webinars per week, access to all archived webinars since 2011, membership to the Tim Challenge chat room, and mentoring from some of the most successful Sykes students.

The students in the Challenge take trading very seriously, and you’ll need to as well if you want to be part of the crew. For example, the chat rooms have pretty strict rules. During market hours, talk in the chat rooms is trade-related only, and they’re moderated.

These chat rooms will teach you a lot in and of themselves … kind of like how you learn a lot from your friends in school … you start to notice trends and the types of things people are looking at, and you begin to understand what makes traders tick.

The Challenge is also demanding. There are a ton of lessons, and it can be easy to fall behind if you don’t make a time commitment. So it’s not something to be taken on lightly!

Is It Right for You?

Whether it’s hundreds or thousands of dollars that you choose to use for your trading education, one thing’s for sure: It requires an investment of some sort to take part in Tim Sykes’ various programs. So, is it right for you?

The answer? Only if you’re willing to go all in.

These programs aren’t for the faint of heart, they’re not for lazy people, and they’re not for people with just a passing interest in trading. They’re for highly motivated traders who want to become self-sufficient and who aren’t afraid to dig in deep and study hard.

The resources you get with the programs can be incredible depending on what you make of them. If you’re the type of person who can’t stick with something and who gets bored quickly, then it might be best to move on. But if you’re serious about it, these programs can be potentially life-changing.

A Trader With a Heart?

Timothy Sykes Charities

Timothy Sykes Charities

Here’s something interesting about Timothy Sykes: In spite of all of the photos of himself posing with luxury cars and stacks of hundred dollar bills, he has a pretty consistent “money isn’t everything” message.

Timothy Sykes is actually a huge philanthropist, running and taking part in a variety of different charities.

Yep: he’s a trader with a heart.

According to him, charity is really what revs his engine these days.

When he got his first car, it was amazing.

But the second one? Not as meaningful.

Seems that Sykes learned the cold, hard truth: Money doesn’t buy happiness; it buys things. They might make you happy, but they won’t fulfill you in the long run.

He started doing charity work early in his career, and hasn’t slowed down since. He’s involved in saving endangered animals and the world’s coral reefs with his charity Karmagawa, and has built over 50 schools for underprivileged children in third-world countries.

So … Is Tim Sykes a Scammer?

Timothy Sykes is many things. He’s a trader, a teacher, a philanthropist, and a pretty unique personality. But a scammer? No.

(Others Agree too: Timothy Sykes Review – Quality Alert Service or Scam?)

He has a proven track record as a trader, and he’s clearly devoted to his students and offering them more and more resources every day. He doesn’t make false promises, and strives to teach you as the end user how to become your own trader rather than offering hot tips or giving you lip service.

His program isn’t for everyone, but it can be a great resource for new traders who really want to get serious. If that sounds like you, his program could potentially help you take some great steps toward achieving your goals as a trader.

Check out his Trading Challenge Here

If Timothy Sykes is not your cup of tea, which is fine as his style is not for everybody, you may like the Power Gauge Report, by Marc Chaikin! You can read my full review of it here: Power Gauge Report Review

About the author 

Jenna Lofton, an expert in stock trading, investing, and financial planning, combines over a decade of experience with rigorous academic training. Holding dual MBAs in Finance and Business Administration from the University of Maryland, Jenna's expertise is grounded in a deep understanding of the financial markets. Her career, which started on Wall Street, has evolved into empowering others through her insights and analyses in the dynamic world of finance.

Based in New York City, Jenna's approach is informed by her hands-on experience as a former financial advisor and her keen observation of market trends. She is known for translating complex financial concepts into actionable strategies, making her a valuable resource for both seasoned investors and newcomers to the stock market. Her commitment to financial literacy and her ability to demystify investment principles have made her a respected and authoritative voice in the investment community.

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