Don't fall victim to a penny stock scam | Investing in penny stocks: avoid pump and dump

I once bought a stock for a major loss and didn't understand what happened until later, when I realized I was the victim of a pump and dump penny stock scam. Here's how penny stock scams work: A person who has gained your trust sends out an email or writes a blog hyping a particular stock/company as being the "next big thing". They might give facts or even logical arguments as to why the stock will succeed, then they'll urge you to get in on the ground floor and buy as much as possible. After all, this stock is going to blow! Once the stock price goes up even a few dollars, the initial person praising the stock sells all his shares, and everyone else is left holding the bag, from which all the air quickly deflates and all the people who came in late lose a lot of money. When investing, think long-term value, or understand the cycles of the market before making a big trade. Check the earnings, price/earnings ration P/E, and always be on the lookout for a quick pump and dump easy buck. Also read "The Intelligent Investor" (co-written by Warren Buffett). Click here: http://patrick-warren.com/the-intelligent-investor

Comments

1. Don't fall victim of scammers like: http://www.timothysykes.com/ this guy teaches how to make money, but he is not a good trader, what he does is, he has a feed that sends these "amazing" penny stocks that will make you money (he already bought them and will sell them to his students), then all the stupid students buy (the first ones to buy make some money and the last ones lose their money). He gets testimonials from the winners, and the losers stay quiet since they fell stupid for losing...
2. it seems like a lot of fun but with this kind of light you'd appreciate For signals look here twitter.com/TerranceGutier7
3. i believe what you are saying is mostly true. and if this is the case wouldn't it be a great idea to short most of these bogus companies?
4. Not all penny stocks are scams. do your research.
5. No disrespect intended to the man in the video. He is both completely right and wrong at the same time. LOL. He was correct when he described the "pump and dump" that goes on in the Penny Stock trading game. All the free newsletters etc that promote penny stocks do exactly as he described. They either 1.) Find a company as he described that is practically worthless but trading publicly and they purchase a truck load of shares - "pump" up the stock in a newsletter, drive up the price and then they are the first to "dump" their shares moments before the inevitable crash. Alternatively some of these worthless companies will pay a newsletter service to "pump" their stocks so they can do as he described by selling all their shares moments before the planned and inevitable crash.
   
   Now, here's where he was somewhat mistaken. It was wrong to classify ALL penny stocks as pump and dump scams. There are some really solid and healthy companies out there who's stock is so undervalued at the moment as to be considered penny stocks. All a penny stock is by definition - is one that trades under $5.00 a share, some as low as actual "pennies". Again, there are some very stable and well managed companies out there trading stocks at 25 cents a share that will double in the next 6 weeks/months or even days. New investors will profit from this move.
   
   However, again, he was correct about all the penny stock newsletters. Avoid them - especially the free ones. There are a small handful of newsletters that all charge a fee but actually identify worthwhile stocks they will recommend. falconstocks.com is one of those services. Yes there is a fee and "no" I do not work for them or derive benefit from recommending them. Seriously. That being said, I have made money following their recommendations. They will make a single recommendation once a week on Tuesday. They do NOT recommend OTC or Pink Sheet stocks at all. Everything is AMEX, NASDAQ etc. They do not promise overnight millionaire status on a single trade. But almost all of their recommendations increase by 20%-50% in 4 - 6 weeks.
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7. Penny stocks aren't a scam. You just have to know a little about the company, the value trends over a week, a month, a year, five years, or max. If your a day trader, you go by the day. If your a long term trader, then you have to know a little more about the company than pegging everything to hope. Hopes 50/50. Sometimes you win, sometimes you loose. The most important thing is, pay attention! Look at what the stock has done in the past, look for news releases or company announcements that might influence the stock price. Day traders do the same thing. They just do it on a tighter time schedule. Penny stocks can be very lucrative if you can do simple math.
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9. Thats not a scam, if you come late to the party then you lose money... if you follow the hyper in real time you can earn money, just quit before cliff falls
10. Stay away from penny stocks if you dont know what you're doing
11. ALL STOCKS ARE SCAMS! THERES NO FREE MONEY
12. Your truth is right wavx wave system just after over 20 years of leading people down the path of promises , never performed and lead many out of good money. There promise was they had the only true security system to protect cyberprotection They told every one that all these major companies were jumping onboard. everyone would get excited. They went on for many years. These people the sprauge family was part of the corp founders and used peoples money to live high off the Hog. Then the last 3 yrs hired 3 military men to run the company, will they disappeared . It was said the company was taken over by the Government , and now the govt is working with Microsoft and windows 10 . The stockholders of many years out now lost of their money, Some lost 100,000 plus and even more. A book could be written.
13. I totally agree and regulators hide to protect the CEO of these scams who sell at the top and resign and do it over and over again with new fake stocks. Even large cap stocks are under total control now by the mega banker scum.
14. i am a single mother with 3 kids who was scammed through the internet and had to loose my whole fortune ,life became hard for i and my family with nothing left on us as feeding and personal welfare became a problem for me ,Not until i came in contact with the cyber crime agency that helped me in getting back all i lost even in double! if you have similar case just like me or you know someone that has been involved in any scam/fraud related issue do feel free to write me on traceyelswood@gmail.com so i can guide anyone on protocols i underwent.
15. Fuck I love it when a Dude Pumps and Dumps me 8===D (o)
16. This sums up wwe stock
17. YOUR AN IDIOT
18. I have something that does work  Go to my site usarocksme.com and learn a new way to make cash legally in the USA.  Thanks for posting.  KC
19. Some penny stocks are actual companies that have fallen on hard times. I bought GLW (Corning Glass) at $2.00 years ago. Sirius/XM radio was at .06 cents a few years ago and their device is in almost every new car sold. Opportunities are out there, and the level of your  own dilligence and preparation is a direct correlation to  your success. 
20. Oh hello! Have you heard the what people say about Palicox Amazing Penny Stocks (should be on google)? Ive heard lots of super things about it and my bestie saw great money following it.