Are we talking about WT here?
How Easy Are Low Float Stocks To Pump?
- Thread starter BearTrades
- Start date
I understand your point, but that's a popular misconception imho... cheap low float under-$10 stocks are notoriously difficult to trade because of their inconsistent pop-and-drop price action and small ranges. Plus you have to trade larger size which means more risk.
It's far smarter for small account traders to trade small size, eg <50 shares of $20-$30/share stocks with strong consistent breakouts, like JDST yesterday into the close, than hundreds or thousands of shares of sh|tty pump and dump dangerous under-$10 crappy inconsistent charts. #truth
Not referring to any particular site; there are many bs cheap stock trading rooms, the frontrunning low float cheap stock scam has unfortunately been around for many years, they have the same red flags in common. #boilerroom
Red flags:
focus on low volume <15k/minute cheap no-name stocks
operator never says where to enter ahead of time, only after the fact
makes big performance claims regularly of making thousands of dollars in wins regularly, without tax return proof
when traders can't duplicate the (phony) success of room operator, the magic answer is to buy overpriced courses or private coaching etc
I get lots of feedback from traders who have been bilked by cheap stock chatroom operators; avoid the cons.
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Yes, I follow him and MadAz. @KCalhoun has many valid points even though I don't agree with all. Just to be clear, I do not trade low floats at this time, but I am watching, learning, and sometimes SIM trading.
It definitely happens. Back in 2005 I was looking at a thinly-traded timber MLP called Pope Resources (POPE). One day in early February a popular newsletter writer (I think it was Steve Sjuggerud) wrote a bullish report on it. It had closed at $25 the previous day and opened at ~$35 the day after the report, trading as high as $56. I was so mad because I came to the same conclusions as the newsletter writer, but didn't pull the trigger. (I did end up buying it late last year (yes, 15 years later!) and through a supreme stroke of luck, timber REIT Rayonier announced that it was buying POPE 3 months later for a huge premium.
You can still see the spike on a long-term chart.
You can still see the spike on a long-term chart.
Title of thread didn't mention WT, so you are welcome to comment on any low float. TNDM, which was mentioned by someone went on, from $2.5 to $90. At the time it had 10 million shares outstanding.