What is a Penny Stock? Why Trade Penny Stocks ?? Can someone really get rich trading Penny Stocks? Listen in as Tim and Stephen review the 2015 Larry King interview with successful day trader Timothy Sykes.
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In our first episode, we discussed the difference between day trading and investing. Building upon those concepts, our second episode covers why you should target low priced stocks–AKA penny stocks. If you want to know what it takes to be a successful day trader, you won’t want to miss this episode!
In Episode Two, two stories are intertwined to create an informative and eye-opening introduction to trading penny stocks. Our goal is to demystify the process by answering common concerns, addressing frequently asked questions, and approaching penny stock trading from what will likely be a different point of view than you’ve seen before.
Two tales of penny stock trading
The episode begins with host Stephen Johnson’s story about how a failed attempt at being a professional poker player led him to a different, more reliable way of gambling: namely, day trading. Along with co-host Tim Bohen, this opens up an incredibly informative conversation about the world of trading penny stocks, and how it’s perhaps not as risky and dangerous as many might think once you begin to understand how trading works.
This conversation is interwoven with a 2015 interview between Tim Sykes and Larry King. In this interview, one of the world’s most famous penny stock traders shares more of his own story, including how his million-dollar injury led him to penny stock trading and why his goal has shifted away from making more money for himself and more to creating more millionaires by sharing his knowledge.
Through these two unfolding stories and conversations, you’ll discover a lot about penny stock trading and how to find success as a trader.
Why trade penny stocks?
Penny stocks are generally defined as stocks that trade for under $5 per share. Why such low prices? Often, these are companies are still in the developmental stages, or just offer one or two different products. Sometimes these companies turn into something big; for example, True Religion jeans was a penny stock at first. However, more frequently, these companies never turn into anything. Actually, as a trader, the latter situation can be a good thing, because it allows you to make a profit by short selling.
In a nutshell, short selling is the opposite of buying. Rather than buying a stock and hoping that it will increase and value and then you can sell it, you’re actually betting that the stock will depreciate in value and go lower. How does that work, exactly? In the course of the episode, both the co-hosts and the Tim Sykes interview reveal more about how this actually works, and how traders can make a profit by short selling.
Can you really make money selling penny stocks?
Truthfully, only the top 10 to 20 percent of traders make it big. Honestly, this is not because it’s hard to find success trading penny stocks. It’s more because few traders actually have the proper toolbox of skills and knowledge to effectively trade penny stocks. Put simply, if you haven’t put in the time and effort to build a strong foundation as a trader, you’re never going to be successful.
To find success as a penny stock trader, you have to take the time to learn the rules. Not only do you have to learn the basics of trading, but you have to learn how the market works. You must learn how to predict patterns, and how to create a plan and stick to it. A lot of hard work, practice, studying, and quite a bit of trial and error will be required of you. It’s not for the feint of heart, that’s for sure. But when you have a successful trade, there’s nothing like that feeling. As Stephen Johnson relays, it’s the closest thing he’s felt since the rush of playing competitive poker.
The trouble with penny stocks
If you Google Why Trade Penny Stocks , some of the first results you’ll see will involve trading penny stocks. While trading penny stocks is available and accessible to everyone, few actually know how to effectively pull it off without training. This means that many new traders will jump in without the proper knowledge, lose money, and write the whole enterprise off.
Of course, it doesn’t help that there are plenty of predators out there offering overpriced training courses that promise to make you a millionaire with penny stocks. Both the show’s hosts and Tim Sykes believe in transparency, and are creating a revolution by openly sharing their trades and techniques.
Are penny stocks right for you?
Ultimately, you can’t be fooled by the easy entry into trading penny stocks. It’s true that even if you have a few hundred dollars, a laptop, and an internet connection, you can start trading. However, that doesn’t guarantee success. Penny stocks require a lot of hard work. The only way you will find success is to establish a process, have a plan, and establish great methodology. It’s not about throwing something at the wall and hoping you make money. Believing in random trades and following self serving stock promoters doesn’t work.
So…are penny stocks right for you? By the time you finish listening to this episode, you’ll have a much better idea of the answer.
Win big!
To celebrate the first season of the Steady Trade Podcast, we’re offering some incredible giveaways. Check out the giveaway page here, and stay tuned for our next episode, where we will continue offering tips on how to become an incredible trad
Awesome improvements and feature added to the website!!!!!!!!!
Thanks Marcus!
Great Podcast! Good job guys!! Looking forward to the third episode!
Glad you are enjoying Endre!
Good job guys. Much better!
Were gonna just keep getting better every episode 🙂
Awesome episode to really give the listeners a good understanding of what penny stocks are, and what opportunities they can provide. Loving the variety of perspectives on this podcast. Also, great editing, it’s fun to listen to the podcast! Superb stuff guys!!! Looking forward to the third!
Great comments Maxim!! Thanks!
Editing is on point … Wait? Stephen is lost in a black hole …. Oh wait … That’s explains Tinder .. It all makes sense now … Get out of the stock black hole
hahaha ya lost in a black hole but when that happens hard work pulls you out 🙂 Not Tinder.
Bohen. The cheat code analogy rocks too …. Hence the Mario in the podcast … The question is why did Mario lose his plumbing job? .. Has Nintendo made him a trader yet?
Awesome Podcast. Love how candid Tim Bohen was about scaling and how it comes with risk. Giving both sides of the story is very important for learners not to get blind sided. Looking forward the next podcast!!! See you guys next week!
-Danillo Andrade
Love this input Danillo, thank you!!
great job guys love the structure love that we can come here every monday and incorporate this into our journeys as traders. see you next week !
Glad you are enjoying Jordan!
I like it,
I saw the interview with Tim S – Lerry King, but now I like the explanations of Tim B, and Stephen makes a fun atmosphere
That’s right baby! Just trying to live the dream every day!
this is awsome what you create guys and makes me better and better
Thanks constant improvement is our goal!!
Great podcast about trading. I am still trying to learn the patterns
Stay diligent, it will come!
Thank you for going over shorting. This is something I have been trying to learn.
Glad you found it helpful!
Great job guys. Keep that entertainment part in your podcast. Love it.
Love to hear this – cheers fella!
This is GOLD! This is very eye opening! Learned a lot again from tim b., stephen j. And tim s. 👏 Whew! I’m pumped! I can’t wait for the next podcast!
Awesome – love to hear this!
Trading is hard, I’ve recently gone back down to 100 share positions because I just need to get comfortable. I have to track my trades better. I have to write out my plan for EVERY trade NO EXCEPTIONS! I just really have to buckle down and get disciplined. Hearing about making millions of dollars gets people excited, but people need to understand that it’s going to take a lot of study, trial and error, persistence, and you may eventually have to risk a lot to win a lot… so small position sizes until you are comfortable with the strategies that fit your personality best. I appreciate this podcast for bringing to light some of the risks as well as the rewards of this niche! Thanks
nice..keep it up
Thanks Marino’s please keep listening!
Thanks Tim, you have helped a lot not only with steady trade but with stocks to trade. I look forward to meeting you one day!
Right back atcha!
Thank you for the podcast is very good way of connection with listeners.
Glad you feel that way! Thanks!
Really enjoying these episodes, Guys! Loving how you have sound bites/clips fade the music in & out & cut it up AND also how you spliced these 2 talks together to bring in core info in a super interesting way 🙂
Thanks we truly want to make it educational but fun and entertaining at the same time!
Great second podcast, very informative, great down and dirty breakdown of what shorting is. Also, gives some great background to Tim Sykes with a big name like Larry King. Also, great Nintendo clip!! Thanks guys!!
haha thanks!
Love the podcast guys!! It helps me continue my learning while I’m at home, work or traveling. Thanks!
Exactly, our hope is to help traders improve while doing other tasks, driving, working out etc. Thanks
Love it — Totally entertaining with tons of Educational TidBits that make sense – Not the typical technical jargon that takes a Master’s in Business Finance to understand… Material that is Truly set up for the average JOE to understand… Thanks GUYS – its a perfect way to start the week off – keep ’em coming…
Stephen Johnson is a hoot! 2 thumbs up.
As much as I like to give him a hard time, he is a great guy!
Another great episode guys! Learned a valuable lesson from this podcast’s topics. Of trading only the best stocks as a better means of focusing my trading and my watchlist every night. Thanks again for your hard work guys!
As the first episode, this is a success and I am grateful for explaining what penny stocks are (it’s never redundant to go over the basics) and the analogies made with both your personal experiences. I really do not want to be the drunk guy at the table that throws hard earned money away out of excitement (easier said). See you guys in Orlando and may the morale rise rapidly for those directly affected with the current events.
Nice podcast to listen to as I finish some homework. Very basic so far but it is a good review for someone like me who had just return to trading after 4-5 months of being on hiatus. Love the breakdown of Tim’s interview with and supplementing it with your own experiences (mainly Tim B.). Though would love to hear more from Tim. B and Stephen, I already hear from Tim S. a lot via video lessons and his chat rooms (no offense Tim S.) but hearing from others perspective definitely helps novice traders like myself. Stephen, same thing happened to me with Roland Wolf’s $TOPS trade but on a much smaller scale when I traded $NAKD back in February. Could of made $800 (which would of been my biggest profit) but only made $300ish after not locking them profits in. Overall, love the episode! Great ending background music too! From 8-mile movie? Lol.
Perfect comments, we will be bringing you sources of info from all kinds of diverse sources! Thanks!
Thank you for this education. I am truly blessed to have been introduced to this opportunity!
Great Podcast.Good to hear the background of both of you.Make trading fun when you study hard.
This is how it should be – hard work but fun
Great job guys. Really enjoying these podcasts. Especially like the idea of dissecting and expanding on Tim’s Larry King interview. I also like the way you bounce of each other to provide alternate perspectives. Keep up the good work. Cheers.
Thanks a lot Mike!
Thank you Tim and Stephen for this informative discussion. I have listed to Tim’s interview with Larry before. Now, having you two give more insight to Tim’s thoughts while going through the interview again gave it a more in depth perspective. Thank you both for putting this on and the insight you are providing. I’m paper trading with TOS right now being so new to all this. While building my watch lists, I do research and go through the SEC filing for them trying to pick out the necessary information. So, far I haven’t been to profitable in the demo account and seem to be missing the ones that run in the day, but will persist in my education. So again, thank you for this insight.
Great attitude Michael!
TimB. you are a great teacher! I love that you take the time to explain something that might so simple and trivial for you, but for others is something new. This makes you a great mentor. This episode, brings a lot of important topics, specially the psychology of having fulfilling activities in your life besides trading. Looking forward to hearing more ! PS I wanna be the lucky greedy bastard!
Thanks Pamela!!
I really enjoyed Steady Trade Podcast episode 2! Your delivery was so engaging that I lost track of time. :p
Tim, by any measure you’re a very effective speaker and educator. I found the Short Selling topic especially intriguing.
Stephen, “The best way to find out if you can trust somebody is to trust them”! And you did exactly that! You trusted Tim Sykes and I fully trust you! Furthermore, your talk always gives me a great boost! 🙂
Thanx to both of you for the enlightening and stimulating podcast!
Very nice comments Romina!! Thank you!
How awesome again. Views from 3 people. Learning how to see what it takes to be successful.
Thanks Adrian, we will be have regular guests in the future, so lots of different viewpoints!
2 for 2
Great show guys
Keep up the good work
Keep on guys doing great ,the way this is put together and presented is just great. Stephen have watched some of your videos on drofitly as a silver member for 9 months now, and want to thank you for your humor ,get a laugh every time TY Ned
Thank you very much Ned!
I am new the MMP and to stock trading. You two ‘broke down’ short selling which was very helpful as well as stressing the importance of reading SEC filings along with some red flags to look for. All very helpful information in developing a strategy/plan/process for a possible set-up.
You guys rock! Can’t wait for the 3rd episode!
Very cool you got some solid educational content out of the podcast!!
This second podcast was also awesome! Enjoyed the humor and soundtracks in between haha. Also the lessons in it are very usefull for me, Thanks!!!
Thanks a ton Coenraad!
Thank you Tim and Stephen for this discussion . I sure that i will be the next millioner Challenge becouseof of Timothy Sykes, Tim bohen, Stephen johnson and other. Lets work.
Great attitude Ravit!!
I like how you guys are giving more back stories to the traders that are up and coming like Roland Wolf. I didn’t know that he doubled his money in a day, to watch it go all the way back to break even. That’s the stuff I think us traders want to hear because we have all done stuff like this. It makes it more realistic
For sure, more coming soon Andrew! Thanks
Regardless of what is being taught it follows along the same path of the Tim Challenge and that is the REAL intention: teach others and those that follow to the water will have the BEST opportunity to drink. Thanx fellas!
Thanks to you Frank!
Even better this week! Look forward to each new episode and learning more each time!
We are going to strive to make every episode better than the last. Thanks!
great job guy@@
Like Stephen i love poker too
great job guy@@
The two of you are doing great. Thank you for helping us learn and achieve goals.
Really enjoyed the second podcast. I liked how you guys dived into the different segments from the Larry King interview. Keep up the good work.
This podcast is awsome, it helps alot of newby traders as myself, i need to scale down in my position sizes.
I blew up my account like 3 Times now🤤 but im going to keep grinding until i get it. Giving up is not an option… learning alot everyday.. NO DAYS OFF.
Awesome Job! Enjoyed this so much!
Loved the podcast this week!! Thanks for all your time and effort guys – it’s really appreciated!! Looking forward to #3 🙂
Wonderful podcast, you guys kept the show very interesting/entertaining through the whole episode. Listened 3x and each time was just as fun as the last. Stephen don’t go back to advertising you don’t suck, as a matter a fact, I have kept up with your year long journey because you proved otherwise. Tim B. Im loving your analogies from restaurants to teaching us to fish. Im happy to see you two are doing what you love to do, teach! Stay driven to keep us degenerates driven! Looking forward to the next episode.
Awesome comments Otto!! Thanks!! 🙂
I just changed my phone number and being the greedy bastard that I am, I still want to win the prizes! Tim, any advice to how I can apply that new phone number to my account?
Great podcast
Thanks
this is getting gradually more interesting
Good job guys
Dudes, U killed it on all levels. By trade I’m a diesel mechanic and a business owner , 30+ years. I was up 2x. Now down. So I know no one gives you anything. I will succeed again. I remember especially when I first became a mechanic. I would read, & reread, & reread, & reread troubleshooting . Well same goes for learning penny stocks. U gents will hear about my rise in this game. Both keep up the awesome job, dynomite… love it. Lost track of time. 😉
Enjoyed this podcast. Great job! Liked to hear Sykes answers about his motivation when questioned by Larry King. Your commentary was insightful as well. @Stephen Johnson – I spent time learning and practicing counting cards… aka mathematically beating the house edge in blackjack and found many similarities to day trading pennystocks as well.
Nice man!
great 2nd show. what was really good about it was it was concise. great tips to understand what is involved for doing homework re SEC filings. How short selling works due to long term shareholders not lending out their stocks, – never knew that!
Love it. Just like the podcast and website features are getting better, We as the students listening, are getting better educated 🙂 Thank you!
Thanks Guys
Great pod cast ! Thanks for going more into shorting .
I think you guys are doing a great job, and the both of you are truly authentic people and I am so glad I ran accross Tims Ad and have become part of this awesome group of people and traders!
This was by far one of my favorite because of how it breaks down words and the interview details. Thank you for bringing this to us free of charge!
Great Job Guys! Stephen appreciate the poker story! I love craps so I understand the gamblers mind! You both provide great insight. Tim B I love your webinars and teachings! You keep it so real and you tell it like it is! We all have different approaches to this journey, but we have to respect the rules! I am spending much more time watching and learning then I am trading! You guys keep entertaining us and we’ll keep listening and learning. Thanks
So…. there is no such a thing as a ‘typical trader’? 🙂 I love hearing all the different stories of how learning and dedication changed someone’s life for the better. Even though memorizing the patterns and repeating trading drill can be very mundane, the bigger goals are what can keep our focus and motivation alive.
The way you explained short-selling was awesome, made it even more clearer…
Great to hear Charles!!
Thank you for the podcast. I would just kindly ask to make it to the point with the info that helps people understand and learn how to trade… I know you’re trying to make it fun an entertaining but if you would keep it to the point with info that really helps it would cut this podcast time in half, i kept forwarding the cast because I only have so much extra time 🙂
Thank you again!
Don’t wear seat belts lest you drown in your own urine?