Riding the ramps

[gordon2007]

I'm a fairly new poster here. What I find interesting though is the amount of baseless ramping (in between some very usefull and helpful posts) that is in a fair bit of threads on here.

But then I think to myself...is this a valid way to trade? Ride all the waves from ramps and quickly take your profits? When I say valid I mean...is that a strategy that people actually use and make a consistent profit from?

It seems to me that it is a way for people with small capital to trade, risky but could be very profitable with a few good hits in a row?

How many do this? I'd think that you could only trade so long successfully this way? Am I wrong? Would love to hear from someone who actually trades this way and find out what the nuances are, the pros and cons. Do people trade this way because of a lack of funds? A lack of understanding? Is it a shortcut? Is it considered cheating?

What's everyone's thoughts on this?

 

[Bobby]

I'm a fairly new poster here. What I find interesting though is the amount of baseless ramping (in between some very usefull and helpful posts) that is in a fair bit of threads on here.

But then I think to myself...is this a valid way to trade? Ride all the waves from ramps and quickly take your profits? When I say valid I mean...is that a strategy that people actually use and make a consistent profit from?

It seems to me that it is a way for people with small capital to trade, risky but could be very profitable with a few good hits in a row?

How many do this? I'd think that you could only trade so long successfully this way? Am I wrong? Would love to hear from someone who actually trades this way and find out what the nuances are, the pros and cons. Do people trade this way because of a lack of funds? A lack of understanding? Is it a shortcut? Is it considered cheating?

What's everyone's thoughts on this?

Hello Gordon,

No mate its not like that, think about the volume & price that happens first, thats real.
Only dopes buy ramps

Bob.

 

[GreatPig]

Typically the most heavily ramped stocks are the ones that are going nowhere or falling. After all, if a share is skyrocketing, why would you need to waste time ramping it?

GP

 

[gordon2007]

Hello Gordon,

No mate its not like that, think about the volume & price that happens first, thats real.
Only dopes buy ramps

Bob.

I'm just not sure that is entirely correct. Let's say you're reading posts that are a blatant ramp from various different forums. Let's say you buy 20,000 shares of a .15 cent share and then sell it 30 minutes at .175. OK that's a $500 profit, minus your your fees and such. Say it's a actual profit of $400. after all your fees. Yes that's called day trading but it's different in that you're not using fundamental information. You're buying based on a herd mentality, essentially taking advantage of the herd.

Now $400 may not seem much to some, but to others it's a windfall.

To me, I see it as a version of day trading, but just using all the wrong reasons to buy it.

 

[dj_420]

Typically the most heavily ramped stocks are the ones that are going nowhere or falling. After all, if a share is skyrocketing, why would you need to waste time ramping it?

GP

i agree with gp, if a stock is heading nowhere ppl will try to encourage movement by ramping, such as "buy now ann coming", "next paladin", "ive spoken to director buy now".

usually you can just buy into a good company on fundamentals and it will take care of itself.

 

[bigt]

...check what happened to YML after a the informative fundamental analysis by YT on ASF...not ramping, but information expressed on a forum that promted a very quick rise on low volume to the YML SP...some say this was driven purely by the ASF traders! Maybe not in its entireity, but I'm sure it pushed it up nicely.

I'm also sure a well constructed ramp would have the potential to fool some inexperienced investors into similar action.

 

[gordon2007]

Yes I agree people do that. But that's not my point at all. My point is, with enough people ramping a share the price does indeed go up, if just for a day. Ultimately the sp will correct after a ramp. And yes people get burned buying on this basis. I'm not advocating it nor would I buy a share based on ramps. But people do. And people make a profit from it.

My query is, are there people here who use ramps as their strategy? Because if you can get the timing done right then one can be profitable.

 

[gordon2007]

Forgot a few more questions.

And if buying on ramps is your strategy, what are the nuances of it. Take small profits and run? Instead of waiting for a big payday just keep taking small profits of 5-6 hundred and get out? What's the success rate of this?

Again that won't be my style of trading but surely it is for some. I'm just curious what kind of person is attracted to this.

 

[dj_420]

...check what happened to YML after a the informative fundamental analysis by YT on ASF...not ramping, but information expressed on a forum that promted a very quick rise on low volume to the YML SP...some say this was driven purely by the ASF traders! Maybe not in its entireity, but I'm sure it pushed it up nicely.

I'm also sure a well constructed ramp would have the potential to fool some inexperienced investors into similar action.

this was also caused by the fact that YML is such a thinly traded stock, second day after young traders posts sp ran from 17 to 24 cents, a few weeks later it ran from 20 cents to 33 cents then fell back just as quickly.

this is because it is so thinly traded a few big $ either way causes large price fluctuations. if the stock was more heavily traded then yt's posts may not have had such a great effect on sp.

in the instance of YML there is one seller of 1 million shares, he could not sell these shares without dramatically affecting sp. he could take out every buy order all the way down to 0 cents!

just look at avg volumes for YML until lately.

 

[Sean K]

Guys I'm not sure if this is the type of thread Joe would be happy with.

Can you hold off on this until he gets out of bed and checks it.

Cheers.

 

[gordon2007]

https://www.aussiestockforums.com/forums/showpost.php?p=110678&postcount=53

I was encouraged by a moderator to open a thread.

 

[Joe Blow]

Thread is okay with me... and particularly timely considering ASF will shortly be having a major crackdown on ramping and rampers.

 

[gordon2007]

Thread is okay with me... and particularly timely considering ASF will shortly be having a major crackdown on ramping and rampers.

Really...can you post some links for that Joe? Would love to read up on it.

 

[Joe Blow]

Really...can you post some links for that Joe? Would love to read up on it.

ASF = Aussie Stock Forums.

Very soon the mods and I will be taking a particularly hardline stance against ramping. We will be deleting any post considered a ramp and suspending the accounts of those who cannot break the habit.

 

[SevenFX]

ASF = Aussie Stock Forums.

Very soon the mods and I will be taking a particularly hardline stance against ramping. We will be deleting any post considered a ramp and suspending the accounts of those who cannot break the habit.

Joe didn't you like the suggestion I made with reguards to ammending the post with a standard ramp removal stamp type of thing....????

This way other learn from it. otherwise there's just missing posts...so the next guy doesn't see or learn anything...

Cheers
SevenFX

 

[nioka]

YT's info on YML has been spot on. Today's announcement proves it. His info certainly influenced the market but that is what good info does. It is for this type of info that I follow this forum. I have done well with info gained here. Examples are AGM ( where there was suggestions of ramping ) ADI ( ditto), AOE, etc
Ramping ? People should do their own research.

 

[Joe Blow]

This way other learn from it. otherwise there's just missing posts...so the next guy doesn't see or learn anything...

If there is something useful in the post, besides the ramp then that's a possibility. But if the post is simply a ramp it will be removed without notice.

 

[SevenFX]

Yes Agreed Joe, remove all the ramp content, and subsitute with RAMP STAMP (perhaps in RED) along with any valuable content..

And tis makes a great visual reminder for all to contain excitement, which over time this less will be required.

Just a royality free suggestion
SevenFX

 

[gordon2007]

YT's info on YML has been spot on. Today's announcement proves it. His info certainly influenced the market but that is what good info does. It is for this type of info that I follow this forum. I have done well with info gained here. Examples are AGM ( where there was suggestions of ramping ) ADI ( ditto), AOE, etc
Ramping ? People should do their own research.

Nobody (well at least I haven't) had been saying YT ramps. If anyone has misunderstand my posts and thought I was inferring that than I do apologise. I only used the YML thread because someone had mentioned in one of the posts to stop the ramping in it. I'll find the post if anyone wants.

I think a lot of this has been misunderstand. Let me try to clear it up. I was never saying anyone ramps. I've not accusing anyone of ramping. But it's a fact that ramps do happen and I wonder if people (not the people doing the ramping) use that as a rule to buy into a share and get out quickly.

Meaning lets say I read a thread and feel that it's being baselessly ramped up, even though I haven't typed a word about it, would I buy it just based on assumption that it'll go up because someone else is ramping it and hoping to sell quickly thus making a small profit.

 

[theasxgorilla]

But then I think to myself...is this a valid way to trade? Ride all the waves from ramps and quickly take your profits? When I say valid I mean...is that a strategy that people actually use and make a consistent profit from?

As this is not a ramp in an of itself but a contemplation of ramping it's probably okay to discuss, right?

Rene Rivkin is no longer with us, but those of us who remember his newsletter in it's earlier days will also most likely remember the trouble he got into when he was found selling shares with one hand that with the other he was recommending to his subscribers as a buy.

Even with the economy of scale that his subscriber base afforded him he could only ramp micro-cap shares. Of course he only needed to ramp micro-cap shares as their low liquidity meant that he could move the market as he tried to exit.

I expect that if a ramp on ASF actually works then the share is either ultra-micro-cap or being ramped elsewhere and the ASF post is a re-iteration of this ramping. If you want to ramp something bigger you've got to be a big brokerage house or have mainstream media connections, right?

Maybe other people's experience has been different to this?