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Stock Robot Scams - How I took advantage of it

Discussion in 'BlackHat Lounge' started by BlackSeng, Oct 26, 2009.

  1. BlackSeng

    BlackSeng Jr. VIP Jr. VIP

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    Hey, do you all know those "Stock Robot" uses a despicable technique called "Pump and Dump"?

    Few months back, I was promoting this Clickbank product by the name "Day Trading Robot". Somehow, I found a way to secretly subscribe to their mailing list which informs subscribers their potential stock pick.


    Here's my Case Study That ACTUALLY happened:
    On 18 May 2009, a few hours before the stock market opened, the author e-mailed every subscribers that he has analyzed UOMO penny stock will rise to new highs.

    I remember the closing price of the stock was $0.30 or lesser.
    As soon as the stock market opened on monday, the price soared till $0.52 and closed at $0.81 at that very day! The next day, it rocketed to $0.90. Then the next day, it fell to $0.72 and took a dive down to $0.20 or lesser.

    So I went to investigate this matter and here's what I found out:
    In the e-mail that the author sent to all the subscribers, there was a disclaimer written. It states that they are actually being PAID by UOMO company for this "plan". It also further states that the author owns at least hundreds of thousands of stocks of UOMO.

    With basic knowledge in stock market, Penny Stock prices will soar easily if a huge demand happens. I assume the author's huge buyout caused the price to jumpstart. And with the subscribers following the author's advice to buy the stock, it further soar the stock's price to $0.90.

    Now at this point, 2 things might have happened:

    1. The Author was smart enough to sell msot of the stock to get the profits.
    2. The investors sold a huge number of stocks at one time.
    When the price took a small dive, all the investors panicked and sold theirs... therefore, the stock price fell even lower.


    That is apparently a "Pump and Dump" scheme. And it's definitely illegal. But I wonder why the S.E.C did not arrest them or something.


    But guess what? I took advantage of this discovery and made a killing selling this product. I told people that they can make a guaranteed earnings since the author will no doubt buy huge number of stocks to jumpstart the stock price. And the buyers can exit a.s.a.p to get the profits.

    I remember I made at least a few hundred a day selling this product with this information I found.

    UNFORTUNATELY, Clickbank removed the product.... so the good o' days are gone.
     
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  2. BlackSeng

    BlackSeng Jr. VIP Jr. VIP

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    FYI, this information is not applicable to new stock robots. So if you're promoting Stock Assault 2.0, this information will not help you.
    But I did some research on Stock Assault 2.0 and found out that they gather their stock picks from a FREE stock pick website.


    So here's a lesson to you all: Take advantage. Be open-minded and learn as much as you can. Knowledge is indeed Power.

    If I do not know anything about the stock market, I would not have took advantage of this.
     
    Last edited: Oct 26, 2009
  3. dating101

    dating101 Regular Member

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    There is a way to profit from pump and dump schemes without having to get involved with the "pump"
     
  4. nipit007

    nipit007 Junior Member

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    If there is a way...Why not tell us? Or pm me if you will...
     
  5. BlackSeng

    BlackSeng Jr. VIP Jr. VIP

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    I'm investigating on Forex robots now. I think there's a ...secret
     
  6. BlackSeng

    BlackSeng Jr. VIP Jr. VIP

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    Dude, I didn't say anything about pump and dump on currency.
    I just said I will be investigating - period.
     
  7. j0b0123

    j0b0123 Regular Member

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    I can assure all here that almost EVERY "stock" robot is a 100% scam, the people know literally nothing about the market. It has nothing to do with any knowledge at all. Most of the programs just have an internal list of names that they randomly pick to promote, or they get paid to promote.

    Any robot that trades penny stocks 10000% falls into this category. What most people do not know is almost every pink sheet stock (there are a few exceptions for bigger foreign companies who are on there because they do not report according to US standards) goes to 0.

    What happens next is it becomes a "shell company", and then someone else comes along and reverse merges into it (basically buys the name and stock listing), changes the name, files to change the symbol - and its off to the races again with another scheme of pump and dump.

    There are a few decent stock bots out there, but stay far far far away from anything that trades stocks that are not on a major exchange (Nasdaq or NYSE). That does not mean the program is not crappy, but it probably means its not a total scam like the penny pumpers.
     
  8. j0b0123

    j0b0123 Regular Member

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    Uh, sure you can. Forex is very unregulated. There are many factors that can be used to "scam" your money.

    1. Artificially inflating the bid ask spread, then the firm trades against your order without your knowledge.

    Example:

    EUR/USD currency pair:

    quote 1.4825 x 1.4833

    Actual REAL spread 1.4828x 1.4830

    If you enter an order to buy, the firm will buy it at 1.4830 and sell it to you immediately for 1.4833 making risk free profit all day long. If you put a limit in they will not fill it until the offer trades down below your bid.

    2. Firm has a trading desk that takes the other side of your orders betting that you suck. This is reality. They have software that analyzes your trading and identifies "opportunities" where they will take the other side of your trade.

    There are more, but these are the 2 big ones in FX trading that most people do not even think about or know exists.
     
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  9. sugateddy

    sugateddy Newbie

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    I have penny stock ebook that I got from JF Straw, it wasn't that bad of a product.
     
  10. glasstron

    glasstron Newbie

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    I kind of stopped reading after the second paragraph.
     
  11. cashcow

    cashcow Junior Member

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    Mind sharing the url of those free stock pick sites?
     
  12. BlackSeng

    BlackSeng Jr. VIP Jr. VIP

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    Go Google it.

    I'm lazy to find those stock pick websites now.
    Just type any terms like "Stock Assault Scam", you will only get affiliate links.

    Those genuine sites that reveals their scam is now deep inside Google's SERP.


    Good luck.
     
  13. angelas111

    angelas111 Jr. VIP Jr. VIP Premium Member

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    i am on their email list too and remember seeing this one. i think they just did another one. i never promoted them though. i think i looked into it a couple of years ago when i first got into im.
     
  14. Jekashi

    Jekashi Regular Member

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    Forgive me if I sound totally inept here, but isn't what the author was doing considered insider trading?