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Pump and Dump

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burglar

Joined
22 November 2010
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Pump and Dump!

I read this term here sometime!
I think I understand what it means, from the context in which it is used.

What are the symptoms and signs to watch out for?
 
burglar said:
Pump and Dump!

I read this term here sometime!
I think I understand what it means, from the context in which it is used.

What are the symptoms and signs to watch out for?
Click to expand...

Think of things you can pump: balloons, empty bags, rubber boat etc

What is common between these items?
 
They can be very hard to spot at times. Enron was probably the biggest P&D of the modern day, and caught out many astute investor.
 
skc said:
Think of things you can pump: balloons, empty bags, rubber boat etc

What is common between these items?
Click to expand...

Loud farty noises from large objects full of hot air!
Illuminating ...

Guess I deserved that.
I work so damned hard at being the light entertainment here!
 
burglar said:
Loud farty noises from large objects full of hot air!
Illuminating ...

Guess I deserved that.
I work so damned hard at being the light entertainment here!
Click to expand...

You are pretty much right. In order to be pumped something needs to be empty to start with...

That's why you need to research, question assumptions and provide margin of safety in your trading/investments.

Or you can just be technical and apply stop loss.

If you ever think that 'this could be my first house / retirement fund' then you are openning yourself to be had imo.

prawn_86 said:
Sounds like a good night out to me
Click to expand...

Does your partner know about this? Or was this how you guys met?
 

When I looked up EXR, FAR both have had speeding tickets
Both have a stellar spike or candle with long wick or pennant thingy, whatever !!

How does a newb get two of these in his portfolio?

I had none in 40 years of trading??!!
 
The Aussie stock market is dominated by prospectors and explorers (as in the number of stocks not so much by market cap) and these prospectors and explorers all pretty much share the same characteristics....they.

  • Have no cash flow
  • Don't make a profit
  • Don't have much money
  • Don't have a major resource

So they lend themselves to the possibility's of inflation by hot air....cos they are made of nothing, are empty and can often be profitable when filled with expectation and hope.
 
burglar said:
Pump and Dump!

I read this term here sometime!
I think I understand what it means, from the context in which it is used.

What are the symptoms and signs to watch out for?
Click to expand...

Hi burglar, I used this term in a post somewhere recently as pumping and dumping on the LSE:AIM market has been criticised as far as the USA and Canada. Many mining stocks are quoted in both domains and some in Australia and South Africa. Canada has very strict regulations on posting information but many websites in the UK virtually anything goes - one stock finished trading in Canada at 32 cents and on no news information opened at $1.46. Dumped in London it closed at 25 cents - such are the moves at times.

Many pumpers and dumpers move into a London stock on early news at 7am, often an increase in resources. Obviously they have links and email crossings and move in very fast. Trades on screen move through quickly and at times at 100s per minute.
As the UK has Market Makers (MMs) the gap between buying and selling widens and falls and the market often falls into auction when volume becomes overwhelming.

One stock LSE:REM was once involved in music and almost went bust. Changed its name to Rare Earth Minerals PLC, raised £650,000 and the market cap rose by £10 million from almost nothing. No announcement as to what is going on and there isn't a board member who knows anything about mining. Stocks like this are just gambling plays.

Once ASX:CCC gets an LSE:AIM quote the fun should start.

So basically it means lots of investors piling into a stock over one day or several and up it goes, at some point it seems as if a whistle is blown and everyone charges towards the exit. My policy is to get out well before the top and bank a few dollars, pounds I suppose.

This happens to a lesser degree on the ASX and most bulletin boards are more controlled. I could start a thread on one UK site called 'My advice on what to buy' and not an eyelid would be batted. There are lots of these. Many run threads that list their stocks being bought or sold or appear on very many threads (off-topic) ramping their favoured stock.
 
Alternatively:

Pump and Dump - An ASF forum member likes a stock, buys some, posts all sorts of exaggerated / hopeful claims regarding the companies prospects , generally talks it up for a while then sells mid stream leaving unsuspecting or relative newbies holding the baby.

Aka Musical chairs (dont get caught without a seat when the hype and rhetoric runs out of steam)

Tad harsh but some need a slap on the wrist at times.
 
The latest LSE:AIM stock in the pump and dump engine room is Sareum AIM:SAR. The stock finished up 126% on Friday and many expect a massive pump up on Monday morning in London.
This could end up the biggest pump and dump in history, so some say.
Sareum are in pre-clinical trials that have shown excellent results so far and cured cancer in 10 patients in the first trial.
http://www.sareum.co.uk
The closing price for Sareum was 2.35p - 2.40p (buy/sell spread for small trades)

NB: The above stock is in the madness zone of London's AIM market and Market Makers adjust prices to wide spreads at times and auctions are very regular, causing amazing wild swings. Currency movements can surprise at times as well. Market Makers may not offer prices whilst in Auction.

This post is not to be taken as advice in anyway whatsoever, nor is it a recommendation in any respect.
 

Nothing much came to pass: http://uk-analyst.com/shop/page-advice/action-advertorial.show/id-130010820

Link for information only. Read risk warnings above.
 
FMJ will be either a monster potash resource or once of the best pump & dumps I have seen for some time
 
The LSE have just instigated a traders Pump and Dump charter.
In Australia stocks usually go into trading halt pending an announcement through the ASX.
In the UK now not only is there no trading halt there is no need to put an announcement through the LSE anymore. Now the real fun starts as the pumpers and dumpers dream arrives.
 
It will be noticed that I rarely post on any stocks anymore.

Because I have found profit in following pump and dump posters.

Beware, I have been trading for many years and know it is very dangerous territory.

Technical analysis is the best recommendation I could make to anyone starting off. Best on ASF is Tech and overall Daryle Morely, day trader, Herald Sun. His pivot point system is excellent if you follow all the rules.
 
explod said:
Technical analysis is the best recommendation I could make to anyone starting off. Best on ASF is Tech and overall Daryle Morely, day trader, Herald Sun. His pivot point system is excellent if you follow all the rules.
Click to expand...

Is that an objective or subjective opinion... or perhaps fluidly subjective? :
 
wayneL said:
Is that an objective or subjective opinion... or perhaps fluidly subjective? :
Click to expand...

Absolutely objective.

Technical analysis is precise and very effective for the disciplined. Anyone can learn it but there is a fair bit to learn. But once you have it you soon recognise that it is basically following just the chart.
 
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