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Could this potentially make big money for all of us...

Discussion in 'Making Money' started by jthomas086121, Mar 3, 2009.

  1. jthomas086121

    jthomas086121 Newbie

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    First off, I'm gonna put myself out there on a half crazy idea. So if it's shit, at least give me credit in the innovation department. The framework is still sketchy, but tell me what you think of my logic.

    All of us on here have one very common skill. We know how to get internet users to take action and we know how to do it in masses with very unique ways.

    That being said I had the idea of what if a bunch of us did that on the stock market? What if a bunch of us used each of unique ways to spread the word to buy one particular stock?

    The idea came to me yesterday when I was thinking about AIG which is selling for around fifty cents. Basically anyone who is buying it is buying it off of emotion and in hopes of getting rich if the company's stock skyrockets. Who better to capitalize off of a potentials buyers hopes and dreams than affiliate marketers.

    Basically if say a bunch of us used e-mail submits, a few of us throw up believable blogs about why the stock will rise to 15 billion dollars per share, a few of us hit AC and share "insider" secrets about AIG, and a few of us use offline techniques to direct toward these websites, it could be possible to start a buying frenzy.

    I would imagine the effect would be similar to a video going viral.

    The money would be made, by affiliate marketers getting in before the campaign and cashing out when we think it's peaked.

    Now AIG is terrible target because the trading volume is waaay too high to impact price movement. On the other hand a stock with low trading volume is a much easier target to drive price up. But AIG would have the price range of what type of stock would make a likely candidate as it is easy to make big money and doesn't require too much money to get into. It'd also be important to find a stock with an upward trend as it will help convince would be investors that the stock is a good buy.

    Obviously to pull this off, it takes a few people who are good at affiliate marketing. More importantly it takes people who will really take action.

    Thoughts???
     
  2. hotwicked

    hotwicked Regular Member

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    Other than that being illegal. That is stock manipulation. While it happens all the time, so do charges against people doing it.
     
  3. jammie

    jammie Power Member

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    I like the idea, but you'd need millions, possibly 100's of millions to move any stock any decent amount, so it would be very, very hard to pull off (read impossible)

    Although, if you spread the word and promoted your stock broker aff link, i'm sure you could be onto a winner ;)

    Some stock brokers pay *big* specially ones where you get like % of there deposits. Hit someone who deposits a very large sum and you're golden.
     
  4. bobbylove321

    bobbylove321 BANNED BANNED

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    Yes, it's "supposedly" illegal, but I find it rather "odd" how ALL of the people who've made millions and billions (warren buffet) have had some insider info. There's NO way that you can become VERY rich by making "sound" decisions. It doesn't happen.

    The corrupt people at the top cheat their way their, well most do.
     
  5. jthomas086121

    jthomas086121 Newbie

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    Stock ticker DOD has an average daily trading volume of 4000 (only 400 today). And there are many more like this one. So I don't think it's a long shot.

    Stock manipulation, hmmm. How about if nobody outright said to buy the stock but rather supplied "favorable" information about the stock and left the decision up to the potential investor. I mean Kiplinger, Money Magazine, and many other investors on TV always go and say buy this stock, sell this stock. Certainly these guys are profiting from their own advice.

    What's the difference with my proposal?
     
  6. hotwicked

    hotwicked Regular Member

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    Many people have gotten the idea of buying stock, and then promoting the company on the internet to pump up the prices. It happens with penny stocks all the time.

    However, many times if the SEC suspects anything and investigates they will trace back most of the "posts" and "favorable sites" that are promoting the stock. Many times people get caught doing it, and then again many do not.

    Those magazines do not own the stock they give good buys for and such. Anytime they are owned by any of the companies or own stock in any of them they have to have full disclosure of the fact.
     
  7. FreeTheTV

    FreeTheTV BANNED BANNED

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    Horrible idea. Stock brokers will catch the drift as will the Fed. Count me out.
     
  8. Hippieinablackhat

    Hippieinablackhat Newbie

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    This is known as a Pump and Dump scheme its is illegal and IMHO unethical.

    I have seen this happen mostly with penny stocks, Bunch of folks get together and hype a particular stock to get it as high as they can or to some predetermined point that everyone involved in the scheme is aware of, Then while they are telling everyone to buy more because "this things gonna go to the moon!!!!" They are in the back round selling of there shares and many poor somebody's get left holding the bag because they were no in on the scheme.

    Just g**gle penny stock message boards, Go to these boards and you will see this method in action.

    I'm not saying you are unethical, I just think this method is because you are basically stealing folks money that are not aware of scams like these.

    Then again, If one is to invest in the stock market it is there responsibility to do there own due diligence so....

    I still don think its right though.

    Now if you want my twist on this method,

    Go to these OTC, Pink Sheets or Penny stock message boards, Learn to spot these scams while they are happening, Then jump in make some quick profits and jump out. This is the same as day trading and if you don't participate in the hype then you didn't scam anyone.

    PEACE
     
  9. kouxx

    kouxx Junior Member

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  10. jthomas086121

    jthomas086121 Newbie

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    damn...i was so happy about this idea. thanks to the pearls of wisdom.

    i will pitch this though while we are on ethics. obviously trading AIG or Citibank would take a huge viral effect to become effective. if this idea was done with a Citi or AIG, the situation could be win-win. since so much US taxpayer money is tied up in the firms, a raise in their stocks would bolster their equity meaning they could pay back some of the taxpayer money they have. of course that's under the assumption they have any intention on paying it back which i have doubts about.

    but then again if you invested in the stock you'd at least make up some of the money they stole in taxes.

    in this case the cause wouldn't be unethical and actually could do a lot of good while make a lot of money for people who get in on the bottom.

    the only obstacle now would be the trading volume. these companies trade hundreds of millions of shares a day. of course the way to pitch the argument to buy the shares is to use the argument i just gave- mitigate the losses you are realizing in increased future taxes for funding the bank bailouts by driving the stock shares of the company up with frenzy buying.

    thoughts on this idea?
     
  11. Hippieinablackhat

    Hippieinablackhat Newbie

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    I'm not 100% on this, I am not a broker and have not traded in a long time but I think that company's only really benefit from longer term share holders.

    What you are talking about is hyping up particular stocks and then selling them off quickly as the people you are hyping are buying, I believe the selling done by the hypers would offset the buying and once the Pump and dump is over the stock is left at the same or lower value then when you started.

    I do not believe this type of trading is beneficial to anyone other then those involved in the pump and dump.

    I also think that Pump and Dumps work best with the penny stocks, again I could be wrong.

    Either way I do not think this is a good idea.
     
  12. oldenstylehats

    oldenstylehats Elite Member Premium Member

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    Both of those companies have entire departments working on changing their public appearance through channels that have a lot more pull than online blogs or forums. You're also trying to justify a scam by grossly oversimplifying the economics of massive, government bailouts.

    That said, you can apply similar techniques WITHOUT getting an SEC knock by avoiding stocks entirely and bolstering the public image of other products, companies, and services i.e. affiliate marketing.
     
  13. omgitsmogo

    omgitsmogo Junior Member

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    But doesn't free speech allow you to post your opinions online? If you truly believe a stock will go up then sure, go ahead and blog about it.

    Just a theory; i know that it goes a lot deeper than that (because there is obviously a large group of people and conspiring going on)
     
  14. stvmn

    stvmn Newbie

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    It's also a different market. You mentioned a common skill of getting people to act. For the most part that is referring to internet noobs filling out CPA offers, visiting sites, clicking on ADs, buying ebooks, etc. Whole different audience when you're talking about investors buying stock.
     
  15. hotwicked

    hotwicked Regular Member

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    Not when you are doing a pump and dump. Your INTENT will be shown and that's where charges will come from on that matter.

    Let's also mention the profit margins doing AM is infinitely higher than what you could make with the stock market. Imagine all the money you are risking versus the low end risk and high profit of AM.

    I was once in on the big stock bubble around 1998-2001 and made good money. Since, I have made decent money, but made a lot more from AM and SEO my sites than I would have ever made on the stock market. Unless you have millions, your margins aren't gonna be all that great. Your risk right now would be very high.
     
  16. qqbot

    qqbot Newbie

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    the SEC will take your money and throw you in jail, if you get caught that is.

    i actually read an article on this a while ago, an old and extremely negative news article about a large company got dug up and a bunch of automated news feeds thought it was recent, people went crazy and it actually ended up in a major newspaper or on yahoo or something (again). i don't remember exactly what happened with the article and the media, but the end result was the stock tanked. It was a major airline if i remember correctly. I thought about doing it, but i do not have the technical knowledge to pull it off, and since it has already happened accidentally (or so everyone thought ;) ) and had serious ramifications, im guessing that something was done to make it more difficult/impossible.

    I almost feel stupid telling you people about it, because im sure there are several people here capable of causing it to happen again without any help from me, and if you did it you could make millions, lol.