pump and dump process?

M

mute9003

what is the full pump and dumpp play on penny stocks?
when i look at them i noticed that almost all pump and dump penny stocks follow same routine.

the RS is announced sometime in the past burried in documents that noobs never bother to read. not announced in any news
then about a week or two before planned split the stock suddenly shows up on top ten most active and gets alot of action.
alot of them seem to have high volume but tight sideways movement after initial pop
then there is some good news announcement and the main pump starts and dies out the same day.
and usually afternoon or after hours the RS is announced
and after the split they announce offering to finish off those hodlers that didnt exit yet.
 

I'd call it as
up and down process


It comes in various shapes/sizes:

up a lot down a lot
up a lot down a little
up a little down a lot
up a little down a little
.....

Pump and dump stocks are the traders' dream,
and investors' nightmare.


If the stock is manipulated, then you will be very
happy because it provides trading opportunities.

 
Last edited:
Overnight said:
Penny-stock talk is not allowed here, in a specific sense.

Do you know why?

Because voices carry.

More...
Not sure what you mean.
Im not promoting a stock just trying to understand how markets work and whether my observation is correct or not.
 
maxinger said:
I'd call it as
up and down process


It comes in various shapes/sizes:

up a lot down a lot
up a lot down a little
up a little down a lot
up a little down a little
.....

Pump and dump stocks are the traders' dream,
and investors' nightmare.


If the stock is manipulated, then you will be very
happy because it provides trading opportunities.
More...

Im talking about current
Every year the pump and dump strategies seem to change slightly.
Im assuming its because those who run them have data to show the most effective way to do it.
I mean after 4 years i did notice that the most important skill in trading is adapting to changing market.
And i see the changes in the way market behaves
But i have gaps in my knowledge because i dont have a mentor that can look at something and tell me whether im right or wrong in my understanding.
I came here to ask alot of questions.
 
mute9003 said:
Im talking about current
Every year the pump and dump strategies seem to change slightly.
Im assuming its because those who run them have data to show the most effective way to do it.
I mean after 4 years i did notice that the most important skill in trading is adapting to changing market.
And i see the changes in the way market behaves
But i have gaps in my knowledge because i dont have a mentor that can look at something and tell me whether im right or wrong in my understanding.
I came here to ask alot of questions.
More...

That's why I said it comes in various shapes and sizes.

Personally, I don't like the phrase 'pump and dump'.
There are thousands of words coined by investors that are harmful to the
traders.

As traders, our minds should be free from words like pump and dump.
Our minds should be :
uptrend - press BUY first
downtrend - press SELL first

Your mindset is not the trader type.
 
mute9003 said:
Im talking about current
Every year the pump and dump strategies seem to change slightly.
Im assuming its because those who run them have data to show the most effective way to do it.
I mean after 4 years i did notice that the most important skill in trading is adapting to changing market.
And i see the changes in the way market behaves
But i have gaps in my knowledge because i dont have a mentor that can look at something and tell me whether im right or wrong in my understanding.
I came here to ask alot of questions.
More...
I have focused on pumps a few decades, if anything has changed is the movements are more logical and pronounced. Example, I don’t know what SHIM, NAAS or IVT do but their movements yesterday were perfect. I thought NAAS would tank after the big spike, it falls to $5.5 and headed to $8.70($9.20 AH) and now it’s $9.20. New tactics by manipulating parties I agree. The Reverse Split pump, I don’t remember this strategy in the early 2000s because traders looked for real companies.
 
maxinger said:
That's why I said it comes in various shapes and sizes.

Personally, I don't like the phrase 'pump and dump'.
There are thousands of words coined by investors that are harmful to the
traders.

As traders, our minds should be free from words like pump and dump.
Our minds should be :
uptrend - press BUY first
downtrend - press SELL first

Your mindset is not the trader type.
More...

I never said i dont trade them. they are my biggest winners. in the past and now.
except sometimes i fail and not exit.
But that is becoming less and less of a problem.
 
i was actually sweating more when trading non penny stocks
penny stocks seem to be more predictable than 5-15 dollar range

because for the most part penny stocks are driven by someone who controls the flow whether its the scammy penny stock owner or pumpers and the rest of traders are reacting NPCs.

but when trading the meaty stocks its where almost 90% of retail traders live. this is where i feel like getting dropped into the sweat lobby in fortnite.
every trader follows almost same principles and trades almost same pattern. so the moves are massive. because all scalpers press button at the same time and you blink one extra time and you are down 20%.
but also the up moves are jut as fast and big. so basically that entire grid is musical chairs with almost every trader out there.
everyone pretends they have a secret strategy but realistically almost everyone plays off the same triggers on the chart creating fast moves up adn down.
 
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