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Pumping and dumping : How it works


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#1 Polly

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Posted 28 February 2019 - 07:38 PM

typical example of a pump today... where the pumper sees with one eye only..and wants to influence share price..

 

here is what he posted...no names mentioned..

 

 

Du Preez said the company anticipates providing an "overview of the report" prior to the publication of its audited 2017 and 2018 financial results, once it has reviewed the full document in detail.
 
"This overview will ensure that the legally privileged nature of the report is not undermined and its position in the various pending legal and other proceedings, including any recovery proceedings to be instituted by Steinhoff, is not jeopardised."
 
 
++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
 
 
Why only i eye....he makes a factual sensitive negative point by management into a positive for Steinhoff...and many more like that in the Steinhoff thread..
 
the true meaning of the management post should read as follows: 
 
 
Du Preez said the company anticipates providing an "overview of the report" prior to the publication of its audited 2017 and 2018 financial results, once it has reviewed the full document in detail.
 
"This overview will ensure that the legally privileged nature of the report is not undermined and its position in the various pending legal and other proceedings, including any recovery proceedings to be instituted by Steinhoff, is not jeopardised."
 
Management stating a fact that there are pending legal and other proceedings against it....
Then red is if any in my view which still has to instituted.
 
and then the pump on quarterly update where sales up 37%... This is only a turnover update and not bottom line. SALES CAN INCREASE 2000% WHICH STILL MEANS NOTHING AS COMPANY CAN BE SELLING  10 POUND GOODS FOR 1PENNY...extreme example i know.. Also more stores opened so the sales increase cannot be compared year on year or quarter on quarter..So a pumper or one already invested sees this with one eye only . second time this has happened which means poster is not familiar with a sales update compared to a 6 month trading update or merely pumping up his investment to hook in more catches.
 
 
Guys im just trying to bring this to you'll attention as every post is a pump post seeing the dumpers get castrated when they post there and are no more posting.
 
 
careful out there as what you read...

Edited by Polly, 28 February 2019 - 07:41 PM.

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#2 leo

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Posted 18 February 2019 - 11:32 AM

what you doing is not a pump....you trading...Pump is when you already hold shares with a higher cost and then talk up the share....to dump later!!


Right.....then def not that. My bad
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#3 Polly

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Posted 18 February 2019 - 11:31 AM

Only reason for me is in anticipation of q1 trading statement on the 28th feb. And it will be same old. Up and then slow poison again, ie short as there is no sold financial info.

Pwc report also going to hurt it when released. Ie, this is not a share that you want to hold on for a long term. Possible share suspension can't be ruled out as well.

what you doing is not a pump....you trading...Pump is when you already hold shares with a higher cost and then talk up the share....to dump later!!


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#4 leo

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Posted 18 February 2019 - 11:24 AM

Only reason for me is in anticipation of q1 trading statement on the 28th feb. And it will be same old. Up and then slow poison again, ie short as there is no sold financial info.

Pwc report also going to hurt it when released. Ie, this is not a share that you want to hold on for a long term. Possible share suspension can't be ruled out as well.
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#5 Polly

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Posted 18 February 2019 - 11:17 AM

I'm ready for a pump!

nothing for me....

 

just shorting reatilers on any bounce


Edited by Polly, 18 February 2019 - 11:18 AM.

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#6 leo

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Posted 18 February 2019 - 11:15 AM

I'm ready for a pump!
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#7 Polly

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Posted 18 February 2019 - 09:50 AM

typical example happening in Steinhoff thread.

 

Some gurus who dont want to show their trades obviously have a much higher average ( over R5.00 i say ) and see their reactions when anyone speaks bad about steinhoff

 

A slight up day Friday and comment of "inside info" taking price higher tells it all..carefull.....some already sucked in with those comments long.

 

Today red.....Friday all it did was went up because of fx...not inside info....

 

All they waiting for is price to go back to thier average to get off.... :)


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#8 Polly

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Posted 11 February 2019 - 10:56 AM

and forgot to add: dont look at directors buying to make any decision in these kind of stocks,,,more often than not this  misleads investors.............


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#9 Polly

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Posted 11 February 2019 - 10:25 AM

If you ever meet with these kind of stocks and disaster................

Please i beg you'll to  treat those two impostors just the same.
Then you’ll be a Man, my son!!!!!!!!!!!!!

Edited by Polly, 11 February 2019 - 10:25 AM.

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#10 Polly

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Posted 11 February 2019 - 10:20 AM

Key to recognize in pump and dump stocks..

 

As he said normally penny stocks.... Ill add to that to say lack of institutional support in buying these shares..Mostly punters and gamblers.

If institutions even own these shares , this is even more dangerous especially if they held for some time and no real profit made. Sooner or later they will start dumping. And if you on wrong side , you know what will happen to your catch the falling knife scenario.


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#11 Polly

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Posted 11 February 2019 - 10:15 AM

Thanks to :

 

http://pennystockstr...k-thats-pumped/

 

 

If you’re a penny stock trader like I am, you’re always looking to see if a stock is a pump before you trade it.

It’s just another way of practicing safety in the stock market.

Yes, you can trade penny stocks that are being pumped, but you have to know first whether or not they’re being pumped.

So many penny stock traders have this problem, or at least are always asking themselves this question. How do I spot the pump and dump stocks?

If you’re beginner I’d not advise you to start up by trading pumps and dumps. I had a very bad experience with them as a beginner.

 

I wish I was as fortunate as you to have someone advising me not to trade them. But it was not the case, I had to experience it myself and learned from my mistake.

I’ve done  ample amount of research before invested, but I did not find any written post telling me not to start with pumps and dumps.

My friends were making money trading them, so I figured why not? I thought it was a very easy and straight forward process.

Even my friends thought the same thing, fortunately for them they were just pure lucky.

From this post, I will share with you 5 key signs that I know on how to spot the penny stocks that are being pumped.

Hopefully they can help you to improve yourself on how you do your day-trading.

First of all, what’s a pump and dump stock?

It’s a stock that’s being promoted by either shareholders or by the company itself. Sometimes they would even have paid promoters promoting them to increase their price.

Why would they want to do this so called “pump and dump?”

It’s pretty simple!

They promote the stock which they currently own some shares from. Once the price has increased to where they would want it, then they sell all the shares.

Those who buy when the price has reached its peak think that they will make profits, but that’s when the price plummets on them, losing them their money.

Promoting the stock is the pump, selling them once the price reaches a reasonable high is the dump. So they call this process “Pump and dump scheme.”

Some traders actually take the advantage as those con artists are making their own profits. In order to do this you’d have to know what you’re doing.

That’s why I’d not advise beginners to take this path.

So, how do we spot pump and dump stocks

  • 1-Promise of big profits:

Anytime you’re being promised of big profits from a stock you should reconsider. It’s a big red flag because no one really knows when their big profits will come.

 

I do believe you’ve known that by now if you’ve been trading penny stock already, it’s not hard to see that.

  • 2- Pump and dump stocks are penny stocks

You will never find a stock in a pump and dump list which is not a penny stock. All the pump and dump stocks are penny stocks. This should be your number one rule.

Penny stocks are the ones that are prone to those sort of manipulations. Although it’s illegal and considered to be a crime. It still happens as of today, in order not to fall prey to them you have to conduct your own research.

Don’t rely on what you’re hearing, look for your own information. According to Penny Stock Expert, only a handful of stock traders stay true to themselves when it comes to researching before trading.

It’s almost impossible to be successful trading penny stocks if research are not being done.

  • 3- Reverse takeover

Most of the penny stocks that undergo a reverse takeover are usually being pumped somewhere along the way.

What’s a reverse takeover? It’s also known as a merger, you may’ve heard of it being called “Reverse merger” before. It’s a method used by private companies to become publicly traded.

They get this done by acquiring just enough shares to control a publicly traded company. And then those shares are used to exchange in the public company. Once this is done the private company has become a publicly traded one.

4- The flat liners

Some stocks are usually flat lined on their graphing figure. They’re stationed at one place and never make any move. All of a sudden the price start increasing out of nowhere.

Those stocks are the one you should be careful with because prices don’t just start increasing for no reason. Especially for a stock that never show any movement.

It’s considered to be a big red flag. Be very, very careful wit them!

5- Trading surge

Seeing share volume of a stock surges from 0 to over 1 million in one day should tell us something. Either they have some very good promoters out there, or they have a way to increase the volume themselves.

Don’t get fooled by them, their goal is to lose you money while they’re gaining money. They’re becoming rich at the expense of your hard earned money.

Conclusion

Pump and dump scheme is involved of artificially inflating a stock’s price to make lots of profit in return. Although it’s well recognized by now, many traders are still being preyed on by those con-artists.

From this blog, I highlighted some of the most seen signs that would signal you that a stock is being pumped.

Knowing how to spot the pump and dump stocks can save you a lot.

I know that there are so many other signals to recognize a pump and dump stock which are not listed here. Please take this time to complete this list in the comment section.

Also don’t forget to share this post with your pals on social media. It may be helpful to them too if it was helpful to you. Let’s help each other, sharing is caring!

As always, trade smart!

 
 

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