They are paid dearly to pursue and they take pride in the art. They take no survivors!!! I have seen where they keep documents for months and it's sad how they will stop at nothing to make a buck off of a Newbie.
Here is what it looks like in the early stages of a Pump & Dump.
Stage 1: A group or groups of shorter's monitor spikes in volumes on stocks with no rumors to be found anywhere. They do their own due diligence long before a play starts.
Stage 2: Shorts will Flag stocks that run up; then sit back and wait patiently for their time.
Stage 3: The shorter's DD the company and develop their distortion of the rumors to be used later. And believe me, they do it well, so Master it yourself!
Stage 4: The shorts step in selling on every possible up tick. This is the Reverse of front loading. Preparations are made to attack the guy who had earlier written positively about the company and take out, discredit, any new long-term messengers.
Stage 5: The shorts step in and increase selling on every possible up tick. Just as with the pump, newsletters, e-mail, PR firms against Pump & dumps, etc. are simulated. Expertise in the field is recruited for credibility. Any possible twist using POS (Purposely Omitted Syntax) & PAS (Purposely Added Syntax) is o so conveniently used on every possible angle. If the POS/PAS is discovered then they attack the messenger.
First and foremost they control the message boards, chat rooms, newsletters, etc.
The group clutters the message boards so no positive information can be readily found. Justification is the Value of the Company in the market. Projections of $0.00 worth and loss projections of 100%. They will even go as far as pushing the bad stuff down so it is buried. Read deep...
ALWAYS REMEMBER: The market manipulator will do everything in his/her power to keep buyers OUT OF THE STOCK. Cut your losses is touted to stimulate fear. You bought higher but now they need you to sell lower.
Stage 6: The shorts have taken it too far. The volume is increasing and the price is not effectively dropping. A stalemate occurs. The chart is painted sometimes too. Personal attacks increase. Threats of legal action, SEC involvement, and yes even death threats increase. It's sad to watch...Increased secret IDs are employed to increase the cluttering, personal attacks & the distortion. So begins a streak of lies that run for as long as one's stomach can take it. Desperately playing on the "you have been had" scenario. Any new news will be hit it hard by shorters to kill any interest.
Watch the volume not the share price. A market manipulator will have various brokers buying & selling the stock to give the appearance of SMOKE & MIRRORS of increasing volume but the price goes down. Thus stimulating the story the company is selling or an off shore reg S or other convenient scenario. Watch for large blocks that show up but have a MARKET MAKER special code, cross overs, etc. Some use codes like 777 when you are watching the Level 2.
Stage 7: Without warning the buying pressure is too much and the short begins to cover. Short covering combined with new investors buying into the stock causes the stock to go up. Often the whole thing starts again & again & again. Just a vicious cycle sometimes.
Don't get me wrong, Newbies have made money but more times than not, bag holders are made. Pathetic really and It is my mission to keep exposing the pump & dumps for what they really are... SCAMS!!!
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