Of late there have been a hive of activity of stock tips groups (paid and foc) using the Facebook, Whatsapp, Wechat and Telegram social media app. I say (most) of these groups are usually not more than a front for a stock pump and dump scam. Remember how this works ....
- The pumper buy up a stock in advance, usually choosing a cheap “penny stock.”
- The pumper start spreading the word about the “promising” stock, aiming to “pump” up the stock and get people excited about potential gains.
- Investors start pouring money into the investment and the price starts to rise.
- The pumper start the next round of “pumping” the stock—and point to the rising price and trading volumes as evidence of its strong performance, which inflates the price even more.
- The pumper keep it up until eventually “dumping” their shares for a huge profit and leaving investors scrambling to get rid of dropping stock as the price plummets.
Some stock tips groups charge a fee to be a premium member, which let's paid members know ahead which stocks the pumper is pumping in advance ...I think it is a great idea ... ...the premium members get to make some great profits ....and the stock pumper get a pool of motivated buyers of the stock he is dumping ...plus an extra monthly and/or yearly fees as well ...
And they are getting super professional too ....they are coming up with beautiful technical analysis, fundamental analysis and take profit, cut loss etc on the stock ....
This article is not to judge whether this is right or wrong as I believe all of us are adults able to think properly but just a friendly reminder on what you are getting yourself into .....Adios.
Hiu Chee Keong
That's why one need to check the recommended stock first b4 buying, check from different sources. but if you want to ride the bandwagon, then prepare to take the risk, cannot blame others :).
2016-04-17 12:25