Dress me up and call me Sally

As Ive sat here all week watching  certain unsuccessful stock promoters pump stocks endlessly and run the price up with their own 100 share buys, I thought about the poor investors who are just looking to have continual sustained long term growth in their portfolio and the actual companies who are having their stocks trashed by these promoters. You see most stock promotions are not run by the actual company but by third parties who have large positions in that stock looking to do one thing....... SELL

A vast majority of scams in the stock world are penny stocks. Alot of those stocks are just shell companies with no employees or products and absolutely no revenues at all. Promoters will dress up the presentation of those companies and try to lure you in on the promise of steady future growth when 

actually after the days promotion the promoter will be long gone and you will be stuck in a stock worth 

far less than you paid for it. 

I think the best example I can give is from my own mistake I once made when I was young in my trading life. A promotional newsletter came out on a particular penny stock. I had a hot $1000 dollars burning a hole in my trading pocket and I wanted to trade it. So as I was getting pretty good at reading stockcharts I looked at the chart on the stock. Little did I know that the promoters had been "painting" the chart to make it look pretty for me as it called my name out. 

On the day of the big promotion I woke excited as heck and already counting my extra thousands I was going to make as I had a hot tip newsletter that promised me fresh new news that was gonna make this sucker run. You see I made 3 very grave errors in my decision to trade this stock. First I believed the surface glitz they placed on the stock and didnt dig more on my own. Second I didnt have a position in it before the big "news" came out. Thirdly and probably most important is I was trading on emotion.

The stock traded hot and heavy for a hot 15 minutes and I had a hard time getting in because it gapped up . Once I finally got in, the stock fizzled and the downward spiral began. My 1000 dollars turned into 

34 dollars as I was trapped in hoping for the readjustment bounce that never came. Eventually I was in so deep I just had to stay and refused to get out. 

I have now filed that loss in the part of my education in stock trading file. Dont fall prey to the glam and glitz that got me. Do the work and reap the benefits of your hard work. Use the promoters alerts and newsletters only as a tool and not as your only decision maker in determining your investments. 

My blog is my opinion and personal experiences only. Never EVER invest money you cant entirely afford to lose. As Always do your own due diligence