Pump and Dump

[wayneL]

Absolutely objective.

I reckon that's a subjective assessment.

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.

errrr... You're preaching to the converted there old bean , but not sure I'd categorize it at precise, even if very effective.

 

[explod]

I reckon that's a subjective assessment.


errrr... You're preaching to the converted there old bean , but not sure I'd categorize it at precise, even if very effective.

A fixed entry criteria (which is a lot of things) and a fixed percentage trailing stop loss?

And I know you all know, just trying to give to the newbies from someone ancient and frail.

Maybe I need to learn about the meaning of objectivity.

 

[wayneL]

A fixed entry criteria (which is a lot of things) and a fixed percentage trailing stop loss?

All subjectively decided.

The point I'm trying to get to plod is that it is dangerous to label someone as the best without knowing every detail AND without knowing about those who are a bit quieter for comparison.

Tech's contribution contribution is certainly valuable but I'm sure even tech himself would shy away from "the best" tag.

 

[explod]

T/a is only part of my overall strategies now, but is one of the important components of learning to trade. (the most important initial one IMHO). I was addressing the question of pump and dump initially and then to discuss safe and unsafe ground.

Sorry to have interupted at all.

 

[explod]

All subjectively decided.

The point I'm trying to get to plod is that it is dangerous to label someone as the best without knowing every detail AND without knowing about those who are a bit quieter for comparison.

Tech's contribution contribution is certainly valuable but I'm sure even tech himself would shy away from "the best" tag.

Know a lad who works for an independant trading company in Holland and they computer trade, sometimes in an out in seconds, all to very fixed and set criteria.

From a book by Michael Covel "Trend Following" I worked out a fixed systen which would identify stocks who had moved sideway for about 6 months and on an uptick of 10% would enter the trade with a fixed stop loss of 5%. I made 60% for the financial year of that system. About 6 trades in 10 failed but the winners made the money.

I believe that learners should as part of the process to trade by very fixed rules/criteria system in the beginning.

Could not rest without tailing my thoughts off on this Waynel. cheers mon ami

 

[wayneL]

Know a lad who works for an independant trading company in Holland and they computer trade, sometimes in an out in seconds, all to very fixed and set criteria.

From a book by Michael Covel "Trend Following" I worked out a fixed systen which would identify stocks who had moved sideway for about 6 months and on an uptick of 10% would enter the trade with a fixed stop loss of 5%. I made 60% for the financial year of that system. About 6 trades in 10 failed but the winners made the money.

I believe that learners should as part of the process to trade by very fixed rules/criteria system in the beginning.

Could not rest without tailing my thoughts off on this Waynel. cheers mon ami

Cheers, and a fine and robust system that most likely is. But fixed and set criteria can be set quantitatively/statistically as well... even fundamentally.

Personally, I'm holus bolus on technical analysis like you, but it is not the only way.

 

[noirua]

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.

I tend to invest in Australian stocks and am a Trader in UK AIM market stocks. As time has gone on I'm getting better at it. I use T20 trades very often and attempt to close out within 18 trading days. If I do it right the broker sends me money after the T20 completes and this way no money leaves my account.

As a trader I look out for announcements and try to work out if it is favorable and at a certain moment, I've worked out with experience, I move in and buy at the early stages of a pump up. Profits have got a lot better as I time the dump better. [Aussie markets keep having 'trading halts' and for a pumper and dumper that makes it a real no no]

Women are far better traders than men and fortunately there aren't that many interested. Men have a macho problem that stops them quickly admitting a mistake - I made two heavy losses due to my macho trading problem but have overcome it now, errrr maybe.
Men tend to follow their team more so than women. The idea they should chop and change teams a lot is very difficult for a man. A woman tends to change her mind, they're allowed to, so selling losing stocks comes easily.

I could continue on for pages but I'll stop now - good fortune my friends.

 

[burglar]

... - good fortune my friends.

Hi noirua! Is that a tautology?!

 

[burglar]

Help needed!

If a company has been pumped and dumped,
how do you know if it's current price is above or below intrinsic value?

I think I'm asking for a simple formula?!

 

[craft]

Help needed!

If a company has been pumped and dumped,
how do you know if it's current price is above or below intrinsic value?

I think I'm asking for a simple formula?!

There is NO simple formula – the very existence of stock markets is evidence of that.

 

[greggles]

Interesting article I found on trading Pump and Dump stocks. Worthwhile reading if the topic interests you.

https://tradinglab.tech/en/trader/trading-strategy-pump-and-dump.html

 

[frugal.rock]

Nice reading there Greggles.
Cheers.

 

[KevinBB]

In this Australian Financial Review article earlier today, ASIC is quoted as saying in a Telegram post:
“We can see all trades and have access to trader identities. We’re monitoring this platform and we may be investigating you. You run the risk of a criminal record, including fines of more than $1M and prison time by being involved.”

The article goes on to say that the posting has been confirmed by ASIC. Hopefully this will be the start of a reduction in much of this pump and dump madnesss, at least in Australia, letting stocks in the the small cap area of the market return to some kind of normality.

KH

 

[Sean K]

In this Australian Financial Review article earlier today, ASIC is quoted as saying in a Telegram post:
“We can see all trades and have access to trader identities. We’re monitoring this platform and we may be investigating you. You run the risk of a criminal record, including fines of more than $1M and prison time by being involved.”

The article goes on to say that the posting has been confirmed by ASIC. Hopefully this will be the start of a reduction in much of this pump and dump madnesss, at least in Australia, letting stocks in the the small cap area of the market return to some kind of normality.

KH

Kev, Telegram is the messenger app? Sounds interesting. Can you cut and paste the text in from the Fin as it's paywalled. Or a screen shot? Tks, kennas

 

[KevinBB]

Yes. The app. I am hoping ASIC is finally getting serious about what they do.

KH

 

[Dona Ferentes]

Kev, Telegram is the messenger app? Sounds interesting. Can you cut and paste the text in from the Fin as it's paywalled. Or a screen shot? Tks, kennas

the text is as stated by @KevinBB . Short and sharp

The ASIC post was on Monday at 9.32am on a newly formed chat group called “Pump and Dump Organization”, an account named ASIC posted that “coordinated pumping of shares can be illegal”.

The post was not taken seriously. One user said the post was sent by someone “from another telegram group trying to spook people here. ASIC don’t send messages like this”. Another said it was, “fake ASIC”.

But an ASIC spokesman confirmed the post was genuine.....

Undeterred, the group pressed on. At 9.54am, the group was told the stock the group going to pump was YPB, which has a market capitalisation of $14 million.

“USE THE MARKET ORDER AND SEND IT TO THE SKY!!” the moderator post said just before markets opened for trading.

The ASIC post was later removed from the feed. The regulator confirmed it did not remove the post or ask for it to be removed.

............ The ASX Pump Organization group had 299 members of which 59 were online as of 11.40 AEST. However, posting activity ground to a halt. The pinned message read “Time to wipe 0.005 on YPB. ”

 

[explod]

Know a lad who works for an independant trading company in Holland and they computer trade, sometimes in an out in seconds, all to very fixed and set criteria.

From a book by Michael Covel "Trend Following" I worked out a fixed systen which would identify stocks who had moved sideway for about 6 months and on an uptick of 10% would enter the trade with a fixed stop loss of 5%. I made 60% for the financial year of that system. About 6 trades in 10 failed but the winners made the money.

I believe that learners should as part of the process to trade by very fixed rules/criteria system in the beginning.

Could not rest without tailing my thoughts off on this Waynel. cheers mon ami

Interesting that you both ticked this after all the years.

The lad married a Swedish lass, he and another set up their own trading business in Sydney and became millionaire's. He moved back to Mt Martha where he and his wife have two lovely children and they are in heaven. Still interact with them now, his father deceased and I used to love a whisky together

 

[KevinBB]

From a book by Michael Covel "Trend Following" I worked out a fixed systen which would identify stocks who had moved sideway for about 6 months and on an uptick of 10% would enter the trade with a fixed stop loss of 5%. I made 60% for the financial year of that system. About 6 trades in 10 failed but the winners made the money.

Interesting. I'm part way through the book. Not yet at the stage where Michael, and the other writers, talk about systems.
KH

 

[KevinBB]

ASIC are at it again, warning users in an online forum (not ASF) channel that they are watching their pump and dump efforts. Still wondering if they will follow through with all this talk.

Link to article from AFR online version

KH

 

[basilio]

ASIC are at it again, warning users in an online forum (not ASF) channel that they are watching their pump and dump efforts. Still wondering if they will follow through with all this talk.

Link to article from AFR online version

KH

About bloody time. There is nothing subtle about pump and dump schemes, They are simply criminal market manipulations . Absolutely no different to rigging a horse race, defrauding the tax office, or dropping millions in Government grants to friendly companies or electorates your trying to impress...

Interesting situation though where ASIC is in fact tipping people off that they are watching. Have they ever had enough evidence to convict peoplein chat rooms for being part of pump and dump scheme? Who is liable ? The promotors sure. But are people who get in and out with a buck but didn't actually start the deal also in the frame ?