Originally Posted by InfiniteBaskets
I can't tell if you're serious but if you are indeed still living at home with your parents and sister then you need to stop listening to any get rich quick schemes, which include Sykes.
Sykes' main method is nothing ground-breaking. Look up stocks have been rapidly rising in the past few days, go search their 10Ks and look for keywords that scream "PUMP" and look to short the stock. There's nothing wrong with that method inherently, but there's a ton of frictional costs he doesn't mention at all.
In order to short the type of stocks that can actually be pumped you're looking at micro cap stocks which are usually not traded on large exchanges. So you've first got to activate margin trading, which can cost you something at your broker. Then because these stocks are so small, they aren't extremely liquid or high in volume. That's why you'll see Sykes only shorting 3k worth of stocks at a time on his youtube videos, because he has to cover his short. With little volume = little supply and you'll end up buying on what's called a dead-cat bounce (all the shorters covering their initial shorts).
Lastly, there's only a few exchanges that will even offer you the ability to short microstocks, and most of those will charge you much more per transaction than your typical $7 per trade on Scott-trade.
If you want to get into high frequency trading or even swing trading you will most likely be coming up in the red compared to buying a basic index fund. For every Sykes student that makes 100k, there's 10 that lose 1 million.
OP, if you actually want to get into investing in stocks, first invest in a personal finance book at the minimum. You can also sign up for free personal investing lessons on cousera.
Going on youtube and looking up moving average crossover methods or Sykes' get rich methods are a sure shot way of getting yourself into trouble.
Let me ask you a question. I am definitely not a seasoned investor, but i have been messing around with it for about a year on and off with some F.U. Money i had....and honestly i hate reading the generic advice EVERY financial advisor gives which is all the same based around huge amounts of money with low, safe returns...because i read that everywhere.
How do you make high returns with low capital? I understand there is going to be risk....wouldn't it be with penny stocks? What other possible way in the stock market can you make high returns with low capital? understanding they're high risk....
i mean i've turned a decent amount of money doing it, and i'd swear by it due to the way penny stocks bounce. its like a side hobby i do every once in awhile, or sometimes i'll get into the kick of it....I don't know about that guy you guys are talking about, i never heard of him, but i would probably never pay someone else for advice. Its just like those gambling hot lines i don't trust them.
there is just no way you can realistically do anything with $500 in the real market. You can however double your money, especially if you're good at min/maxin'g with penny stocks. I know you can but thats why i am puzzled at what you're saying like they aren't a viable way to make a lot of money, or rather high returns with low investment. As far as i know thats the only way to make high returns with low capital.
and before someone says "they might as well gamble it away then"....gambling is the worst way to lose your money. When you lose in stocks you don't really lose everything. You may lose 20%, 40%, 60%, even 80% of your investment the longer you wait while it drops, but rarely or never will something just drop to 0. You'll always have time to recover partial amounts of your initial investment, which is why stocks are far better than people who gamble their money away. Again assuming you're doing high risk investments which is more akin to gambling....as opposed to safe investing with low returns which isn't so much gambling.