Background
Steven Dux turned $27,000 into over $12 million trading penny stocks, primarily through short-selling overextended small-cap runners. His track record is verified through Profit.ly and broker statements. Originally from China, Dux studied under Tim Sykes before developing his own more systematic approach focused on statistical patterns in penny stock behaviour.
Core Methodology
Dux's approach is primarily short-biased, targeting overextended penny stocks that have run 100-500%+ on hype, pump-and-dump activity, or unsustainable catalysts. He identifies 8 specific short patterns based on multi-day price action and volume behaviour. His edge is statistical: he has catalogued thousands of historical penny stock moves and identified repeating patterns in how they top and decline.
Key Trading Rules
- Primarily short-selling overextended penny stocks after multi-day runs of 100%+
- 8 specific short patterns including 'first red day' and 'stuffing' setups
- Wait for the 'blow-off top' — climactic volume with a long upper wick on the daily chart
- Size position based on the statistical edge of the specific pattern — larger size for higher win-rate patterns
- Cover (exit short) in stages: 1/3 at first target, 1/3 at second target, final 1/3 at pattern completion
- Hard stop above the high of day — if the stock makes a new high, the pattern is invalidated
Key Concepts
Books & Resources
Steven Dux Freedom Challenge ($1,200–$7,800). Profit.ly verified track record. Tim Sykes Millionaire Challenge (where Dux originally studied).