Resolved: Profit Ly - Timothy Sykes / Profit.ly Tim Sykes Got ripped off for $400 on a membership and poorly made online-only DVD
I got into trading stocks in July of this year. I found Tim Sykes shortly after I started to learn from a few websites.
I initially felt like he was selling snake oil and didn't believe his strategy would work.
I traded on my own for a few months and had a little success. I wanted more so I revisited Tim Sykes at profit.ly and videos on youtube and got sucked in this time.
I bought a membership for his "Pennystocking Silver" plan that would give me a daily watch list, chat room access, and access to a video library. This cost me $99.
I also decided to buy his "How to make millions" DVD for $297 that was on sale. This video was really long and didn't teach much. A basic power point presentation with lots of bragging. I honestly learned nothing new on the DVD. What really made me mad was that the DVD is streaming only so I had to be connected to the internet to watch it and because it was so long, it was difficult to watch in segments. I deleted my profit.ly account and no longer have access to the video that I paid for and he doesn't give refunds. Luckily I used a credit card and will file a dispute.
I was a Pennystocking Silver member for about 1 month and found out some truth about Tim Sykes. I bought into a few of his alerts and noticed he always made money on these alerts, yet I would lose every time along with the majority of his students. This had me thinking, how could this be. Well, Tim is obviously buying into low volume, low float stocks earlier than he is alerting. When he sends his alert, the 1000+ subscribers follow like sheep driving the price up letting him exit for a small profit. I lost a few hundred dollars with a few of his picks.
His strategy involves long and short positions. Being that he is short biased, most of his students follow the lead and try to short every penny stock that moves up. Students are blowing up accounts because of all the fees involved for short selling. The majority of students have smaller accounts like me and don't realize that the commissions, hard to borrow fees, and margin interest add up and take away from profits. When he does take a long position, he is essentially scalping like every other guru. This means taking a large position for a small percentage gain. If you look at the profit.ly trades for Tim Sykes or any other guru, you will see that he is taking usually less than 5% gains the majority of the time, but preaching on his DVDs to take 20-200% gains with pennystocks. Most people see that Tim Sykes is making $1k+ profits on a single trade, but they don't realize that he is using a $15k-20k position to make $1k.
If you look at the profit.ly website where Tim preaches transparency with the trading community, it is a flawed system.
You can manually enter trades or import trades from your broker. This sounds legit, until you actually do it. You have the option to not import or add bad trades giving others the illusion that you are a better trader than you actually are. I believe profit.ly is a snake pit for other cons in the stock market trading community. Everyone is trying to sell something for an inflated price.
I am writing this because I started trading in the stock market with a few thousand dollars that I saved up. I work as a musician and have limited income. It was bad enough to pay market tuition learning the ropes, but to waste $400 on Tim Skyes showing basic techiniques like support and resistance, bragging about being rich, and pitching sales to his other videos and other gurus really made me upset. This guy is a marketing machine and not much of a trader.
I am glad I saw the truth after a short period of time with Tim Sykes. Some of his students are completely brainwashed. They are longtime subscribers that keep spending money on his instructional DVDS and are still not making any profits.
He brags about his millionaire students Tim Grittani and Michael Goode. Do a little research into these two traders. Tim Grittani has been involved with a few chat rooms, including Investors Live, and has said in interviews that his strategy is closer to Nathan Michauds than Tim Sykes. Michael Goode was a succesful trader that bashed Tim Sykes before he got involved with him. These gurus are getting paid by Tim Sykes to use their name for advertising purposes.
Heads up, he owns Investimonials.com and screens negative reviews. So if you decide to investigate Tim Sykes for reviews on the web, you will see fake websites that he made trying to sell videos or web content and only positive reviews on Investimonials.
I have filed comlaints with the FTC and SEC regarding this guy and I urge anyone to stay clear of profit.ly and Tim Sykes. I am in the process of looking for other outlets to share this post since he has a tendency to have negative posts removed to hide the truth.
** Also beware of Nathan Michaud, Cameron Fous, and other trading Gurus. These gurus were once involved with profit.ly and Tim Sykes and are taking money from innocent people all over the world. It is really a shame that the trading community is full of cons and manipulation. **
There are plenty of books and free websites to learn. Learn candlestick charts, patterns, and risk management. There is lots of free information at stockcharts.com and swing-trade-stocks.com. Chat rooms are good for gurus to pump stocks for their benefit.
Reason of review: Scam.
Monetary Loss: $400.
Preferred solution: Full refund.
Store Location: Pretoria, Gauteng