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Stock trading the blackhat way

Discussion in 'Business & Tax Advice' started by Roparadise, Jul 15, 2011.

  1. Roparadise

    Roparadise BANNED BANNED

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    Before I realized what people were doing I got burned several times by people using this method. What you do is that you find a penny stock is has some news coming up soon. Buy lots of shares in the company. Then you get onto yahoo message boards for that stock,and you promote it a lot under different accounts. So that people will think that it is going to shoot up. They will buy shares,causing it to go up. When it goes up so much sell the shares,and take your profit.

    A similar method is to create a website,and a robot that picks stocks.

    The tv hosts that give out stock advice use the principal of this method,but don't always promote stocks they own,so that they will keep their influence etc.
     
  2. CM Punk

    CM Punk Newbie

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    I have heard about people using this method to make money. You don't really have to go on the message boards to promote the stock, just pay attention to which penny stocks other people are promoting and try to get in on the ground floor. When enough people have bought it, sell.
     
  3. elcappy

    elcappy Junior Member

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    So let me get this straight. With a penny stock, let's say it costs $1 share. If i buy 500 shares and people buy start buying these shares too, the value let's say goes to $2. If I sell all my shares at $2/share. I get $1k back and profiting 500, minus fees and such?
     
  4. book1773

    book1773 Newbie

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    This method is commonly known as pump and dump. It's been used for
    years and considered illegal. If you send out any news release or posting on
    any forum to entice people to invest in a stock you need to disclose by law that you currently own shares in the company you are promoting and you plan to liquidate all your shares after the news release is sent out ect.

    Basically most penny stocks are engaged is some type of pump and dump scheme. Stocks that go up in price naturally based on real news and a real basis are rare with penny stocks.

    As long as the news or messages you post are factual information
    you are disclosing then that's fine. But if you post a message saying
    this gold company dug a hole and found 1000 tons of gold and it's worth
    xxxxxxx amount and they never dug a hole watch out..


    Usually the people promoting penny stocks have absolutely no knowledge of
    the market and they simply pick a stock they think is good and cheap then they buy x amount of shares then they blast out there message and they next day people react to the message buy shares then when it hits it's climax for the day they cash out.. Now if you get in early you might make a little profit but if you get in at the top your basically at a loss.. Because most penny stocks go up for a day then straight back down.. HYPE HYPE HYPE
     
  5. davids355

    davids355 Jr. VIP Jr. VIP Premium Member

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    This happens all day every day with stocks.

    Also most of the time, if you know news is due to come out about a stock, it will already be reflected in the price.

    Also, you need to reach alot off ppl to effect the price.
     
  6. Technolimo

    Technolimo Newbie

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    This is a very old scheme called pump-n-dump, a lot of people are doing it though. Think I will avoid that one , the SEC is an 800lb Gorilla that carries a pretty big stick.
     
  7. book1773

    book1773 Newbie

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    Very true.. If you noticed the top sellers on click bank under business and investing
    are two penny stock websites making bank. Basically all they are doing is putting you on a mailing list to pump and dump different stocks they own shares in and selling it as information. The sad part is it is not illegal as long as you disclose in your message you own shares of x amount and you plan on liquidating these shares. Now if they get caught sending out a message that has no factual basis to it then there is an issue..
     
  8. Roparadise

    Roparadise BANNED BANNED

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    And the good thing is that most people are too interested in making money that they fail to read the disclosure. Just like no one is going to read the user agreement with software.
     
  9. sashablack

    sashablack Elite Member

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    agreed with all, pump and dump!

    I actually use this guy, I subscribe to his picks! Made some good money with this guy! But its always a 50/50 so be prepared to loose or win!

    www.penny-stock-prophet.info

    By the way i currently own stock BLTA (Baltia Airline) Its a new airline, do your research maybe it can be profitable!

    (IN NO WAY DO I ENCOURAGE OR PRACTICE ANY PUMP AND DUMP)
     
  10. jkwak

    jkwak Regular Member

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    Checkout nqqod they're gonna get FDA approval on there cancer treatment drug!
    Just kidding lol!
    I've been on Wall St for 20 years and it's not just penny stocks that get manipulated my friend. It's widely known that the large houses like Merrill lynch and others basically recommend stocks to retail clients when their institutional client needs to get out of their positions. It's kinda like black hat I suppose.


     
  11. vrodriguez305

    vrodriguez305 Junior Member

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    Where do you guys trade at? I'd like to jump into it!
     
  12. Roparadise

    Roparadise BANNED BANNED

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    I used to trade at etrade,they are pretty good. Don't go to any of the major banks they rip you off with their prices. And they have terrible layouts. Before I switched to etrade I was at Chase bank,which charged me $50 for a complete buy and sell. etrade only costs $14 for a complete buy and sell.
     
  13. sashablack

    sashablack Elite Member

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    I personally use Zecco.com! Cheap and pretty easy to use!

    Have fun!
     
    • Thanks Thanks x 1
  14. Roparadise

    Roparadise BANNED BANNED

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    thanks for the advice,I'm going to use them when I get back into trading. Currently Im focused on building my websites up.
     
  15. book1773

    book1773 Newbie

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    jkwak Yes there is munipulation with all types of stocks but pump and dump with false information is illegal. Pink sheet stocks are less regulated then stocks on the nasdaq or the nyse.. Also you don't see well known companys going on up in price by 1000% in one day just to hit back down to were they started the next day...
     
  16. Roparadise

    Roparadise BANNED BANNED

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    I wasnt suggesting starting false news,but overhypping real news stories,so that people believe it is great news and not just ok new.
     
  17. Starcodes

    Starcodes Regular Member

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    Stock vs forex? Anyone?
     
  18. wantsuccess

    wantsuccess Registered Member

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    FOREX- not for the common man...the most money in any niche is made by the person selling the info on the niche not persons involved in the niche...

    ex: the only people making big buck in the forex niche arepeople selling courses or seminars 1-1 coaching etc...and the big investors who invest as a profession (wall street)

    same in the IM niche the people selling you push button softwares ,seo, traffic, product creation etc make all thier money from selling the info not from the actual niche itself...they don't use the stuff they sell.or very seldom you find a marketer whose actually actively using the methods he teaches...

    the monies in the info...

    thanx and i have an affiliate site that pays $1000 per sale...anybody wants it it's free but only if you go through my link...it's being sold for $27 elsewhere...include complete marketing strategy with a new twist enabling you to have little to no competition
     
  19. orbit

    orbit Regular Member

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    I wouldnt think yahoo boards would have such a huge impact
     
    Last edited: Jul 17, 2011
  20. fred7

    fred7 Regular Member

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    Do you think there are only 500 stock traders on the market? Lol it only work if you're Bernanke..

    Thanks for your idea anyway