Are you interested in discovering Timothy Sykes net worth? The renowned penny stock trader and entrepreneur is estimated at $15 million.
Timothy Sykes is a penny stock trader and blogger who claims to have earned trading profits of $1.65 million from a $12,415 bar mitzvah gift through day trading while attending college. He operates a blog and a subscription platform designed to educate individuals on trading penny stocks. According to a Forbes editorial, he generated up to $20 million in revenue from subscriptions to this platform in 2015 alone.
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Timothy Sykes Net Worth
Timothy Sykes is an American stock trader and entrepreneur with a net worth of approximately $15 million. Born in 1981 in Orange, Connecticut, Sykes is renowned as a penny stock expert. He famously transformed his bar mitzvah money into over $1 million by day trading while attending Tulane University.
Sykes began trading penny stocks with more than $12,000 he received as gift money. After experiencing a significant loss of over 36% in his fund, he decided to shift his focus from trading to investing and subsequently shut down the fund. In his senior year at Tulane, he founded Cilantro Fund Management LLC, which was recognized as the #1 short-bias fund by BarclayHedge from 2003 to 2006.
In 2006, Sykes was named one of the “Top 30 Under 30” traders by Trader Monthly. He published his book, An American Hedge Fund: How I Made $2 Million as a Stock Operator & Created a Hedge Fund, in 2007. By 2008, he had successfully recreated his initial investment of $12,415, turning it into over $90,000 within two years.
Sykes is an educator and financial activist. He launched Investimonials.com in 2009 and co-founded Profit.ly in 2011. Sykes has also made headlines for exposing and criticizing celebrities like Shaquille O’Neal and Justin Bieber for their involvement in pump-and-dump schemes.
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Timothy Sykes Career
Timothy Sykes graduated from Tulane University in 2003 with a bachelor’s degree in philosophy and a minor in business. As a Jewish student, he often prioritized day trading over attending classes during his time at Tulane. In 2003, he founded Cilantro Fund Management, a small short-bias hedge fund, using approximately $1 million primarily sourced from friends and family. Despite initial profits, the fund was shut down three years later due to significant losses.
In 2006, Sykes was recognized in Trader Monthly’s “30 Under 30” list of promising traders, a selection that editor Randall Lane later referred to as “our worst pick” among the honorees. Sykes claimed that Cilantro Fund was “the number one long-short microstock hedge fund in the country, according to Barclays,” but Lane later revealed that this rating came from a lesser-known research company, the Barclay Group, rather than the prominent Barclays British bank.
In 2008, Sykes sought to replicate his earlier investment success by starting with $12,415 once again. He self-published An American Hedge Fund: How I Made $2 Million as a Stock Operator & Created a Hedge Fund in 2007, detailing his experiences as a day trader and the challenges he faced in establishing a hedge fund.
In 2012, Sykes launched “Miss Penny Stock,” a financial beauty pageant featuring female representatives for his brand. Additionally, he has made appearances on the reality show Below Deck, featuring in season 2, episode 10, and season 5, episode 13.
Teaching and Other Projects
Following the closure of Cilantro Fund Partners in 2007, Timothy Sykes authored the book An American Hedge Fund and launched his website, TimothySykes.com.
In 2009, he established Investimonials.com, a platform dedicated to gathering user reviews of financial services, books, and brokers.
Sykes co-founded Profit.ly in 2011, a social service platform with around 20,000 users that provides online stock trade information. He stated that the service aims to create public track records for trading gurus, newsletter writers, and students, allowing everyone to learn from both successes and failures to enhance the industry as a whole.
Notably, one of his students, Tim Grittani, turned $1,500 into $1 million in three years through stock trading, while another student, Jack Kellogg, earned over $10 million under Sykes’ mentorship.
In addition to his trading initiatives, Sykes founded The Timothy Sykes Foundation, which has raised $600,000 and partnered with organizations like the Make-a-Wish Foundation and The Boys and Girls Club.
In February 2017, he donated $1 million to Pencils of Promise to help construct 20 new primary schools in Ghana, Guatemala, and Laos, scheduled for completion between 2017 and 2018. The Timothy Sykes Foundation was later renamed the Karmagawa Foundation. By 2019, Karmagawa had built 57 schools and contributed over $4 million to 45 charities focused on environmental causes.
In 2020, Sykes and Karmagawa pledged $1 million for relief efforts in Yemen amid the civil war and the cholera and COVID-19 epidemics. Karmagawa celebrated the completion of its 100th school in Myanmar in 2022.
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Controversy
Timothy Sykes has been vocal in criticizing various businesses and celebrities, including Shaquille O’Neal and Justin Bieber, for their involvement in promoting “pump and dump” schemes. These schemes involve an investor buying stock, encouraging others to purchase it to inflate its price, and then selling the shares at a profit before shorting the stock to benefit from its decline.
In May 2017, Sykes engaged in a public feud with Bow Wow on Instagram, during which at least one user accused Sykes of using “coded racist language.”
In 2020, Sykes faced legal trouble when he was sued by Scanz Technologies, Inc. The lawsuit alleged that Sykes stole technology from their trading platform, EquityFeed, to create a competing platform called StocksToTrade. Scanz Technologies claimed that Sykes violated a termination contract by replicating the look, feel, assets, and trade secrets of EquityFeed, seeking $10 million in damages along with punitive damages.
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, graduating in 2003 with a degree in Philosophy and a minor in Business.
Sykes established “The Timothy Sykes Day Trading Award for the Talented,” an annual scholarship awarded to outstanding students from Tulane University.
He founded the Timothy Sykes Foundation, which focuses on charitable efforts, supporting organizations such as the Make-a-Wish Foundation and the Boys and Girls Club, as well as other causes he is passionate about.
In 2017, Sykes made a significant $1 million donation to Pencils of Promise, a nonprofit organization dedicated to providing educational opportunities for children in developing countries. His contribution facilitated the construction of 20 primary schools across Guatemala, Ghana, and Laos.
By 2019, the Timothy Sykes Foundation had built over 50 schools and donated at least $4 million to environmental causes, after which it was renamed the Karmagawa Foundation.
Timothy Sykes Trading Strategy
Throughout his trading career, Timothy Sykes has continuously refined his approach, primarily focusing on penny stocks and adhering to a strict set of trading criteria. He has authored several books detailing his strategies and regularly hosts seminars and webinars to share his knowledge with aspiring traders.
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Key Strategies and Advice
Work Out Your Entries and Exits
Identifying entry and exit points is crucial for trading success. Sykes emphasizes understanding the stock and its fundamentals before entering a trade. If a stock doesn’t meet his criteria, he refrains from trading it.
Let Volatile Stocks Be Your Friend
Sykes believes in trading volatile stocks, as they can yield higher returns with proper risk management. He seeks stocks likely to trend upward, purchasing them on pullbacks and holding until reaching profit targets. However, he stresses the importance of being ready to exit quickly if the stock shows signs of reversing.
Learn to Trade High-Volume Stocks
High-volume stocks offer greater liquidity and potential for short-term profits due to their predictable movements. Sykes advises studying a stock’s history and news events that may influence it, while also using technical indicators to inform trading decisions. Avoiding illiquid stocks is crucial to prevent losses from being unable to exit positions quickly.
Focus On the Technical Aspects
Technical analysis helps identify entry and exit points, as well as emerging trends. Sykes recommends studying indicators such as support and resistance levels, moving averages, and price patterns for effective trading. While technical analysis is beneficial for short-term trades, fundamental analysis is more valuable for long-term investments.
Learn the Key Patterns
Recognizing patterns is essential for traders. Sykes encourages learning common chart patterns, such as double tops and bottoms, head and shoulders, wedges, and flags. Understanding these patterns can help traders identify trends and enter markets at optimal times.
Pay Attention to Debt Levels
Debt can significantly impact a company’s value, making it essential to monitor debt levels when trading. Sykes advises assessing a company’s debt-to-equity ratio before making trades. A high ratio may indicate potential financial struggles, so ensuring an acceptable debt-to-equity ratio is critical before investing.
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