We’ve had numerous requests for a review on Timothy Sykes’ course, so here it is.
Sykes has various different courses and plans – and upon initially navigating his site we found it hard to differentiate between subscriptions, courses and alert services. We decided to purchase and review his highest level of membership, and enrolled in the Timothy Sykes Trading Challenge.
One of our initial challenges was figuring out how to get through all the material. There are more than 1400 video lessons to watch, along with a huge library of DVDs outlining the strategy and the methods Tim uses to find the companies he trades, watch the price action, and make a move that is calculated to give him the best reward/risk. There is a large overload of information and the learning path is not exactly clear. Students are encouraged to dive in and continue watching and reading until it becomes clearer in the long run. As far as the presentation of the course, we think Sykes would benefit greatly from simplifying his material and giving more direct recommendations. Although some of the videos were very informative, we couldn’t help but feel as though navigating the course was similar to searching the internet in an attempt to learn to trade – a wealth of conflicting and unorganised information.
If you’ve seen any marketing from Sykes you’ll know he’s not shy, which tends to generate a large amount of hype and controversy around his strategies. The in-course marketing is no exception. Although it provides great motivation, you’ll need to be prepared to receive numerous emails each day containing course content and up-sell information. Although it’s not an issue, these are all automated emails and don’t help you to feel very well supported through the course.
Although we certainly can’t say the package lacks content or excitement, we also wouldn’t recommend it for those who are new to trading, or feel like they’d require a mentor or other tool to simplify the learning process. Below is an example of one of his free video lessons.
Sykes initially started out trading penny stocks and he is known for being one of the first prominent penny stock short sellers. As many people know, the penny stock markets can be very sketchy. The OTC markets are tarnished with shady companies who engage in paid promotion schemes, dilute their share structure, and don’t provide full transparency. Tim focuses on short selling a lot of these stocks after they experience and irrational spike or after a paid promotion scheme.
Penny stock markets are cyclical; sometimes they are a hot sector and other times they are completely dead. Accordingly, Tim has expanded his style to take advantage of other types of stocks, such as earnings winners.
Tim’s style is rooted heavily in technical analysis. Simply put, he uses stock charts to make most of his trading decisions. He also focuses on other elements such as paid promotions, earnings, and news catalysts. Tim’s approach to the markets could be described as “common sense” trading backed by technical analysis. For example, if a stock runs simply due to a paid promotion, Tim may conclude that the company is garbage and the share prices will drop right after the promotion is over.
Tim uses the profit.ly chat room as his support service. He alerts students of his traders via phone, email and the chat room. This approach has positives and negatives. It teaches students to rely on copying his trades and doesn’t teach them to develop their own style or do their own analysis. It is also time sensitive so if you’re unable to act on the alert immediately the opportunity is missed. Some students enjoy the trade alerts and if they’re able to be online majority of the day they are able to act on them and benefit from Tim’s style, however timing is key and should be noted.