– So in this video I’m gonna talk about how you can grow a small account trading penny stocks. I know the whole world hates them, but it’s due to lack of strategy. Let me educate you. (energetic music) Make sure you subscribe to my channel, and click the little alert notification bell, so that you get alerted when I have new lessons that are gonna change your life! What’s up, Tim Sykes, Millionaire Mentor and Trader here answering your FAQs so if you don’t mind, leave some questions in the comment section below. I will gladly answer them, and especially if there’s a topic that I think that there’s a lot of misinformation about. That’s basically what I do, I correct misinformation. I’m basically a glorified history teacher. I’ve traveled all over the world. I made millions of dollars. I’ve had frankly an amazing life because I know proper information, and this is what I want for you. I have my own charity. I’ve now built 67 schools and libraries with my charity foundation called Karmagawa. I’m wearing right now this new merch from Save The Reef. This is one of our charity projects. Don’t make fun of the shoulders, this literally just came off the factory floor today. This is actually recycled material. It’s actually made out of plastic water bottles, which is cool. I’ll post the link below if you wanna get it. The profits from this all go to charities working to save our oceans and marine life. So I not only teach, I not only trade, I not only build schools and libraries, but I’m also trying to save the planet. Some people ask why do I do all this? Because I do believe that other people can get rich, and I want there to be a planet for you to have fun on. If you get rich and everyone’s dead, what’s the point? And you’ve just studied and worked your butt off, and you finally got to the point where you can spend money and really enjoy it and then the world falls apart. That’s not good. So literally I’m trying to save the world so that you can enjoy it. It’s my pleasure and it’s also my honor, and it’s also my obsession. And that’s what it really takes. In order to make a lot of money in penny stocks or anything, you must be obsessed. You can’t listen to generalities. You can’t listen to the TV. People will say, “Oh, penny stocks are all scams, “you can’t make money.” Well then why did my top student, Tim Grittani, turn $1,500 now into over $9 million? How is that possible? How have I documented from $12,000 now to over five million trade by trade with my average gain being under $2,000 per trade. Tim Grittani’s average trade is like $3,000 per trade. So it’s not just like we’re investing in Tesla and growing our money exponentially. Tesla has been a fantastic performer, at least as of the date of this video. It’s pretty choppy. With penny stocks though, the reason why so many people hate on them, the reason why there’s so much doubt is because most people believe in these penny stocks. They believe in the technologies, they believe in the CEO’s promises and the press releases, and they believe in promoter’s emails saying this is the next great cancer fighting company, oh this has a new product that’s gonna change the oil industry. And they’re mostly just lies, whether they’re doing it illegally, or maybe they’re just blind or naive. No matter what, almost every single penny stock that you learn about, every single technology that you hear about will likely fail. I was invested in a company called Cygnus eTransactions. I lost over $500,000 personally. My hedge fund lost roughly a million. I lost all my credibility, and they basically invented print-at-home ticketing. And I was right about the technology. I was right that print-at-home ticketing was gonna be huge. But they had a lot of debts, and they frankly went bankrupt before they could take off. And then the CEO, not my best friend’s dad who I basically invested, I was a little too emotional, my best friend’s dad was the CEO initially. He got thrown out. The new CEO said, “Don’t worry Tim, everything’s fine.” And then he plunged the company into bankruptcy and bought it for himself later selling it for roughly $50 million. So I was actually right about the technology. I was actually right about the company. But I still lost money because I wasn’t right on the timing. And that’s best case scenario, right? Or near best case scenario. Obviously best case scenario would be me making millions of dollars. But the key to making millions with penny stocks is not getting lucky, not having an exception to the rule, which is what Cygnus actually turned out to be. Instead, it’s learning how to make 1,000, 2,000, 3,000, dollars per trade on average. Sometimes you’re gonna have losses too. But if you can make 1,000, lose 100, make 2,000, lose 200, make 1,500, lose 200. You keep your losses small and your gains big, and your account grows over time. All my top students and I, none of us win 100% of the time or 90% or even 80% or even 70%. We all win roughly 50, 60, 65, some of us win 70% of the time but that’s in a hot market. If you can win 50 to 60% of the time with your average gain being 1,000 or 2,000, and your average loss being 100 to 200, that’s a good ratio to think about. So now, how do you actually make $1,000? Well, if you’re starting off with 1,000 or 2,000, you’re not gonna make $1,000 on a trade. I don’t like going all in. I don’t like using leverage. If you have let’s say a $2,000 account, what I would do, first of all I would study a lot. You have access to over 1,000 free YouTube videos. Click that little button, subscribe in the corner there. You should be watching every single one of these videos. They’re free, they’re free! And they’re actually very useful. So first of all study, okay? Because you need to learn the pass. This game has been going on for decades without you. You’re playing a game of catch-up. So you need to learn how these stocks move, what are the intricacies. Read the book “The Complete Penny Stock Course,” by my student, Jamil. I’ll post the link just below this video. He summarized basically all my video lessons, DVDs, webinars. He put it all into a nice book which I think is very useful.
So study first. Then, or maybe as you’re studying, you can also trade with a small account.If you wanna trade with a 20 or a 50 or $100,000 account, and you think that it’s gonna be easier ’cause you’re starting bigger, you’re wrong. I would encourage you to start small because even Tim Grittani, who’s turned 1,500 now into over nine million, he made nothing his first nearly year. His first nine months really, nothing. So expect that. If the best penny stock trader in the world arguably, makes nothing his first nine months in a hot market, you probably won’t make much either in your first nine or 12 months. But that doesn’t mean that they’re all gonna go to waste. A lot of people make fun of my students when they’re first starting like, “Oh, it’s been six months, you’re studying, “and you’ve made nothing.” Sometimes it takes a little time. And sometimes you need a hot market, you need some plays. Not all nine to 12 month time spans are created equal. But the cool thing is, there’s always another hot stock, there’s always another hot sector. There’s always something moving eventually. And when there’s not anything moving, be grateful because now that gives you extra time to study. So first study, learn the patterns. A lot of the lessons are very subtle. There’s a lot of nuances. But it’s all the same general patterns. This isn’t rocket science. After you study, let’s say you have $1,000 or $2,000, I would not use more than 50% on any one trade. So if I have a $2,000 account, I would not put in more than $1,000. And if I am gonna use 50% of my account, that’s a big percentage, right? Even though it’s just $1,000, you have to trade very scared. Rule number one for me is cut losses quickly. Too many people just let their money go free in the wind. Would you go to Vegas, go put $10,000 or even $1,000 on a table and be like, “Hey guys, watch my money, I’m gonna go to the bathroom?” No, you wouldn’t. But a lot of people do that in trading, right? If you’re putting $1,000 or $2,000 on a trade, you really have to be careful. Your whole goal would be to make $100 or $200, that’s it. So if you put in $1,000, if you can find a pattern, whether it’s a morning panic or a first green day on OTCs. I’ll post links to those two videos ’cause I’ve done videos on morning panics and first green days, which I think are good patterns for you starting out to learn. If you put in $1,000 into one trade, your goal should be to make $100 or $200. On a morning dip buy, you might make $100 or $200 inside of an hour or two max. If you’re holding first green day, you buy it basically at 3:30, 3:45 p.m. eastern, you sell it the next morning, you don’t even use a day trade. But if you can try to make $100 or $200, and then if you’re wrong, you cut your losses. And because your gains are so much smaller at first, you should not lose more than 20 or 50 bucks. So you have to be very very careful with your losses because if you’re starting with a small account, you don’t have much to lose. Tim Grittani actually lost his first 1,500, he had to re-up. He blew up his first account before he had my rules. Rule number one, cut losses quickly. Also, trade scared. You don’t just have to wait for a loss to happen, okay? Sometimes I take small gains, I make 50 bucks, I make a hundred bucks but the stock isn’t breaking out the way I want. Maybe if I’m dip buying in morning panic, it’s not balancing the way I want, guess what? It’s okay. If you make bigger gains than losses, and it adds up over time, your account can grow exponentially. Trade for trade for trade for trade. It’s not gonna happen overnight. So I want you to have patience and learn. Utilize the resources that I talked about. Dip buy morning panics, buy first green days on OTC former runners, ideally with news and catalysts. I know it’s a lot to take in. Please click the links below so that you can understand what I’m talking about. And trust me, you can grow an account exponentially, you just have to do it step-by-step. Leave a comment underneath if you have any more questions.