Wednesday, 8 January 2014

How to Find Pump and Dump Stocks

            Alright, let’s say you don’t want to invest your money into the DVDs or video lessons that I’ve bought. It’s ok. I’m a big fan of giving away information that I know, on a limited scale of course. You can’t know everything I know. That being said, every day I go on Yahoo Finance’s website and find the biggest percentage movers. I’ll even give you a freebie right here: this is the link. Bookmark it, put it on your homepage, do whatever you want as long as its embedded somewhere in your trading.
            Once I visit that page, I can see all of the companies in the United States market who have made big moves in that day. What I’m looking at is stocks under 10 dollars, but more specifically though, I’m very interested in NYSE and Nasdaq penny stocks. It’s surprising when a company moves in extreme double digits, but in the penny stocking world, that is not necessarily so. These things work on hype and a newsletter is what gets them going so quickly because people dream of something worth less than a dollar jumping into double digits and making them rich.
            This dream is not much of a reality and these stocks will eventually crash and burn. So when you find these stocks on Yahoo Finance, go through the news, look up the businesses, do as much research as you can. There are stupid amounts of companies that are said to be the next big thing but hype is hype, but it doesn’t last, and that is where a short seller can make his bread and butter. Not every small company will fail so this isn’t a strategy I am creating for you and this is not something for you to follow just because I’m telling you some of the things that I do. Anything you do is at your own will.

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