Pump and Dump or Stock Promotion?

One thing I want to say about pump and dumps and promotions is be VERY careful. It is very easy to get wrapped up in the hype of a promotion and then YOU are left holding the bag. I like to use http://newsletter.hotstocked.com/stocks to find out when a stock has been promoted and who has promoted it and what was the performance of the promotion. A promotion becomes a pump and dump when the promoter pumps it while others with a position sell off their stake. This is where my due diligence becomes my best tool. Questions I ask myself are, "How long was this stock promoted?, "what was the performance of the stock during the promotion?" " did the stock hold any gains or did it have its 15 minutes of fame before bottoming out again?" Using a promotion can be a tool if I am trying to get out of a position but be very careful and dont hold too long. I advise against using a promotion to get into a position, as the stocks being promoted tend to be very unstable and uncertain and it is easy to get wrapped up in the emotions of making a quick buck. Knowing your due diligence of a company can help you to decipher whether a newsletter or alert you get on a stock is good news or just polishing a turd to get you to buy in. Dont get caught holding the bag!! Do your homework!! Third party promotions are often designed to get them out and you in. Tomorrow we will look at some stock charts so we can actually see past performances on stocks and how they can help us get in on a bottom and out with our profits.