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My Interview with Timothy Sykes

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December 23, 2010 – Comments (2)

Ryan Mallory:  Here with Timothy Sykes, founder of TimothySykes.comInvestimonials,Profit.ly, and you are author of “An American Hedge Fund”. I think I got that all in, right?

Timothy Sykes: That’s it! So far.

Ryan Mallory:  And I’m sure you got more stuff on the horizon.

Timothy Sykes:  Working on another book and two other websites

Ryan Mallory: So, real quick, just for my readers if they don’t know much about your background, how did you get your start?

Timothy Sykes:  Basically, I turned $12,000 into $2,000,000 while I was in high school and college.

Some friends and family wanted to invest in my behalf so I started a hedge fund senior year of college, not the brightest idea. I was too young and cocky and just naïve. And I was the number one ranked short-bias fund but that’s just the biggest most shorts ever to lose money. I didn’t lose money but I made a measly 2% per year over four years. I was up 20% per year over three years but the last year I got came in the part where I was young and naïve because I invested in a penny stock. I didn’t know any better. I wanted to go for a big win and turned out to be a big loss. So my fund lost 35%. Overall, we finished up 2% per year, so, pretty bad for a hedge fund. Not disaster but then I was fortunate enough to be in a TV show Wall Street Warriors. I started getting 300 emails a day from people who’d seen the show. They said, “I wanna learn your strategy.” My hedge fund wasn’t doing anything so I started blogging and just taking it one step at a time and wrote a book, created a blog, created one DVD, created nine more DVDs, created a subscription newsletter, and now Investimonials and Profitly. So I just take it, you know, I evolve, I adapt just like traders.

Ryan Mallory:  And you have a unique type of trading so explain that a little bit in detail cause it’s definitely not your run-of-the-mill trading approach.

Timothy Sykes:  So I would not have chosen this strategy, I would not wish it on anybody because it’s full of little obstacles. It’s hard but, that said, it made me a millionaire at age 22 so I don’t hate it that much.

I basically look at the worst companies, they’re the ones that you get emails about that say “buy this stock ‘cause it’s gonna go up a 1,000%” and I short the living hell out of them when they rise because I consider—statistics prove me right that 99.9 % of these companies will go bankrupt or fail or their stock will get crushed. So the only time to really trade them is either A) you could buy them before they get promoted, which sometimes happens, or B) which happens every time, when they get spiked, afterwards you short into the run-up because you know they’re gonna fail some time or another.

Ryan Mallory:  Now you talked about, just briefly there, your stock that really hampered your hedge fund. Was that your biggest loser or your worst trade that you think you’ve ever made or…?

Here's the rest of the interview

2 Comments – Post Your Own

#1) On December 23, 2010 at 6:04 PM, Bays (30.14) wrote:

He definitely has some skills, but trying to replicate his strategy would be very difficult for the average investor.  The behavioral science behind a strategy like that is more important than any technical or investing knowledge. 

Like he said, discipline is what's important.  The average person could not pull that off, and at least I'm smart enough to know I couldn't!

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#2) On December 24, 2010 at 2:59 AM, Option1307 (29.74) wrote:

Holy geez that is actually kinda intersting, Everydayinvestor used to swear by Timmoy Sykes, I think if I remember correctly. See his stuff here and here or whatevs

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