Revered penny stocks trader Timothy Sykes is not afraid of calling a spade a spade and more so after his recent escapades with crypto that left him more than convinced that things could get even uglier.
Expect the worst in 2022
Although Tim has not been deeply involved in trading cryptocurrencies directly, more often preferring to take on penny stocks linked to companies offering those cryptocurrencies, he recently disclosed an even more glaring plan about something he says he feels bad about but has to do.
“I haven’t shorted ANYTHING in 2 years now as it’s been very risky/stressful to be a short seller in this DIA, SPY $, BTC ETH bubble & as someone who prioritizes students over profits, I want to set a good example too…but I’ll likely short some in 2022 as this bubble pops!”.
Generally, cryptocurrencies have not been a cup of tea for the Kamaragwa Charity founder. Whereas he has undoubtedly bagged some good profit from Ethereum and Bitcoin after holding for over two years as he avers, he has previously criticized cryptocurrencies sharply owing to their unbacked philosophies and promoter tendencies.
Beware Of Promoters
Tim is worried that most traders will just grab onto the hottest story and hope it’s the right one without taking their time to do sufficient research. For instance, in late October, the pundit brought to the attention of his followers Robinhood’s Q3 report. According to him, the fact that Robinhood was underperforming was a red flag to Bitcoin tipping despite promoters calling for its mooning.
In late November, Tim also warned that Bitcoin was going to crash, a situation that unfolded last week.
According to him, “Anything that goes parabolic, especially in times of excessive liquidity, eventually comes down. So much of the buying was stimulus check or dumb money buying.”
Despite other variants affecting the derivatives markets including the Omicron, Tim warns that cryptocurrencies are as prone to promoters as stock markets. He says that the fact that Bitcoin and other cryptocurrencies have risen parabolically in the last year should not fool traders into thinking that a 90% crash cannot unfold.
“People are asking if I think Bitcoin will crash 90%. I don’t know. I doubt it will go that far down. One smart thing crypto promoters have done is to control the supply. But it could go down more.” he adds.
“Cut Loses Quickly, Lock In Gains”
Tim advises traders to abstain from being too attached to any trade or asset. “Your job as a trader is to profit from volatility,” he says, “A trade is not profitable until you lock in your profits & getting emotional can muddy the waters. Similarly, it’s difficult to cut losses fast if you become too emotionally involved.”