Penny Stock Conspiracy Program by Timothy Sykes An American Hedge Fund How I Made $2 Millio n as a Stock Operator & Created a Hedge Fund Timothy Sykes Have What It Takes To Be My Next Success Story? Up-to-date I have helped more than a dozen students make solid six-figure profits. I have also helped thousands of students learn how to become self-sufficient traders. The Greatest Risk Is Doing Nothing! Now is the time to immerse yourself into my world of trading penny stocks using my niche strategy; both on the long and short side. I've been consistently profitable during this market volatility; and now it’s your turn! You don't have to be a trading professional to work with me. Truth is, I don't really care what your experience level is or how much you have in your trading account. I just need someone who is willing to be teachable and follow my instructions line upon line. Why Am I Doing This Now? You've seen the news. High unemployment, recessions, downsizing, and foreclosures are a daily topic. Right now is the best time to invest in a trading education and I will prove it by helping you make big money in this market. Because I get so many requests daily (over 2,500 emails per day...no joke), not everyone will qualify. I'm going to select a handful of lucky people who are serious, motivated, and ready to work. Disclaimer This book was not designed to provide more than anecdotal information on stock trading and hedge funds. It is sold with the understanding that the publisher and author are not engaged in rendering legal, accounting, professional or investment advice of any kind. If legal or other expert assistance is required, the reader should see the services of a competent professional. It is not the purpose of this material to reprint the investment information that is otherwise available to traders, fund managers and the public but instead to relay one individual’s experiences in the finance industry. You are urged to read all available material, learn as much as possible about stock trading and fund managing, and tailor the information to your individual needs with the assistance of trained professionals as may be necessary. Trading and, more specifically, hedge funds are not “get-rich-quick” schemes. Serious pursuit of the activities described in this book requires a great deal of time and energy in order to learn the intricacies of the marketplace. Even then, there are no guarantees of success, as many hardworking people involved in these activities still lose money. Every effort has been made to make this book as complete and accurate as possible. However, there may be typographical and/or factual errors and omissions. Therefore, this text should be used only for entertainment purposes and not as a reference for trading and hedge fund information. Furthermore, this book contains trading and hedge fund information that is current only up to the first printing date. The purpose of this book is to entertain. The author and BullShip Press, LLC shall not be held liable for any loss or damage caused or alleged to have been caused, directly or indirectly to any person and/or entity, by the information contained in this book. Any mischaracterizations or misrepresentations of people, places or organizations are done unintentionally and without malice. If you do not wish to be bound by the above, the author and BullShip Press, LLC kindly request that you please stop reading this book now. Contents Acknowledgements Introduction Prologue: A View from the Top 1. Start Me Up 2. Bitten by the Bug 3. Showtime 4. The Freshman 107,000 5. Happy New Year! 6. Once in a Lifetime 7. When the Levees Broke 8. Margin of Safety 9. There’s No Business like Hedge Business 10. 2004: A Hedge Fund Odyssey 11. The Year that Cygnus Built 12. I Love New York! 13. Pink to Red Ink 14. I am a Warrior 15. Lessons Learned The Numbers Acknowledgements I would like to thank the thousands of inept corporate management teams, shady brokers, boiler rooms, pump and dumpers, stock promoters, market manipulators, wannabe traders, newsletter writers and Internet message board posters—for your endless scheming and undying greed, without which my fortune would never have been possible. Thank you to the third-party marketers, accredited investors, hedge fund databases, TV producers, journalists, bloggers, CNBC and, of course, the SEC, for without you my story would probably never have been told. Most importantly, I have to thank the people who gave me money for my bar mitzvah, for unwittingly being my first investors, and my parents, for willfully investing in me and supporting me in all my endeavors. Hedge Fund • A mutual fund organized as a limited partnership and using high-risk, speculative methods to obtain large profits. —Dictionary.com • An investment company that uses high-risk techniques—such as borrowing money and selling short—in an effort to make extraordinary capital gains. —American Heritage Dictionary • A flexible investment company for a small number of large investors (usually requiring a minimum investment of $1 million); can use high-risk techniques (not allowed for mutual funds) such as short selling and heavy leveraging. —WordNet, Princeton University • An investing group usually in the form of a limited partnership that employs speculative techniques in the hope of obtaining large capital gains. —Merriam-Webster’s Collegiate Dictionary 14 Introduction I have no extraordinary talents and yet I was a millionaire by the age of 22. I was raised to believe in America and in all of our nation’s most sacred principles, including freedom, justice and success through hard work. I created my wealth by repeatedly betting much of what I had in the belief that I could predict the future of certain stocks’ prices. I was right often enough to become wealthy within a few years. Most people are reluctant to talk about how much they earn, while my profession is defined by it. Most people mismanage money; my wealth is built on the backs of other people’s financial mismanagement. I take from the middle and upper classes and give to myself. I get paid only if I can correctly predict how a stock will act over the next few minutes, hours and days. I am a stock trader and I earn a living from trading the smallest, most volatile publicly-traded companies in America. There is no salary, no pension, no health insurance, not even any coworkers, but the independence of it all is exhilarating. On several occasions, I have lost and gained hundreds of thousands of dollars, all within a few minutes or hours. It is gambling, but it is researched gambling. The digital world has created a new frontier where it’s every man for himself—and there are few rules. You either make money or you don’t. It’s the American dream on steroids. I made huge amounts of money for years and then tried to expand my operation by becoming a hedge fund manager. Yes, I became part of the vaulted high-stakes end of the investment business that has recently become the center of much debate. I had no idea what I was getting myself into. This was a whole new ballgame and I was about to 15