Riding the ramps

[doctorj]

To drag it back on topic - are ramps tradable? Look at NWE this morning...

Does the volume of posts on a company act as a leading indicator for a break out? Do changes in the rate of posts do the same, or better? Do people follow less reputable posters at the other forum, hoping they get on and off early enough?

What are your experiences?

 

[gordon2007]

Well said doctor....these are the type of things I'm trying to figure out.

 

[bigt]

..it was me who initially mentioned YT's YML info. in this thread, not as an example of ramping, but as an example of how quickly a SP can move based on info. placed into forums such as these. In YT's case it was factual..tho my point was this type of information could also be non-factual ramping, by someone trying to influcence the SP...and those inexperience enough to not be able to read through the BS may jump in and set off a mini-SP rise.

Apologies if anyone thought I was insinuating YT's analysis as a ramp, not the case, and please keep up the excellent posts YT...I have been following your thoughtful insights for several months now and am extremely impressed, to say the least.

 

[Kauri]

A while ago whilst at an art exhibition opening I met a bloke who had imbibed rather freely of the complimentary red (as had I). He explained to me that he and a few of his mates searched for cheap speculative penny dreadfulls that were in a hot sector. Over a few days they bought up a position in the stock, then via a couple of (reputable) forums started pushing it. Punters check out the chart, see the gradual volume increase, and buy in, adding to the hype with their own posts and also the increased vol. Momentum traders and the fear of missing out traders get on, with the inevitable surge in price and vol. Job done, on to the next. He even told me the share involved and I watched it all unfold. It happens and more often than you think. And he reckoned that it was getting easier as he had reached Guru status on the forums involved.
Is it tradable.... yes.... but be aware of what is driving the price, if there is only hype treat it as a momentum trade. Don't be the one left holding the can at the end of the day.

 

[watsonc]

I have seen a particular person, whom of which I won't name, who has posted 3 identical messages on this forum and two others.

It was something along the lines of "YML will fly to $1.00, Buy, Buy, Buy!" "This will do exactly what GSE did!"

Shouldn't this be illegal or something?

Also I have noticed people copy and pasting Young Trader's research on on YML on other forums. A bit dodgy if you ask me.

 

[watsonc]

It's possible for someone to participate on 6 or 7 forums using a different name for each, and just talk s##t all day to ramp their stocks.
I've noticed most people use the same name for all the forums! Wouldn't it be better to have a different name for each forum - that way it would be harder to be detected as a blatant ramper.

 

[Deadcat]

Rampers are easy to spot. There is no susbstance to their posts and declarations of buy buy buy. I think it is great to have a forum like this to bring to your attention stocks that are performing, not performing etc and to have people speculate with their reasons explaining. I ignore sales tactics used by blatant rampers and would definately not trade their stocks.

 

[canny]

watsonc - I am one who has reposted YT's post (YML) onto another forum, with his name used as the credit - not taking the credit myself.
I have done this because I thought it was exceptional research which could be appreciated and shared by others. The figures were accurate and reflect the future potential of the stock. Is that ramping or sharing information?

I still believe the price will come back up to reflect the future value.
Seems to have been some fear in the trading today imo.

 

[YOUNG_TRADER]

Hey all,


Just had a good read of this thread,

I don't mind people copying my research and posting on other threads (as I can't really stop them), so long as ASF members get the benefit of at least 1 week to diggest it before anyone else does.

One thing I must stress though is I'm no guru

And everytime I find a good undervalued story, ie recently it was YML and also NWE I hope people do their own research and analysis (most do) and form their own opinion, I would never want someone to go, hey that guy reckons this ones a goer buy buy buy.

I hope my contributions are useful.

Cheers all

 

[constable]

A while ago whilst at an art exhibition opening I met a bloke who had imbibed rather freely of the complimentary red (as had I). He explained to me that he and a few of his mates searched for cheap speculative penny dreadfulls that were in a hot sector. Over a few days they bought up a position in the stock, then via a couple of (reputable) forums started pushing it. Punters check out the chart, see the gradual volume increase, and buy in, adding to the hype with their own posts and also the increased vol. Momentum traders and the fear of missing out traders get on, with the inevitable surge in price and vol. Job done, on to the next. He even told me the share involved and I watched it all unfold. It happens and more often than you think. And he reckoned that it was getting easier as he had reached Guru status on the forums involved.
Is it tradable.... yes.... but be aware of what is driving the price, if there is only hype treat it as a momentum trade. Don't be the one left holding the can at the end of the day.

I wonder if this guy has bought into SOM !!!
Also i bet this is the same guy that buys into aex every 3-5 weeks !
Didnt get his numba by any chance ! lol

 

[Kauri]

I wonder if this guy has bought into SOM !!!
Also i bet this is the same guy that buys into aex every 3-5 weeks !
Didnt get his numba by any chance ! lol

constable,
Funny that. Around the traps (art shows) I hear that it is hard to find any mining minnows that have not moved, apparently the bio tech/health minnows are next. Of course this is hearsay only. DYOR, or should I say go to your own art exhibitions!!

 

[kgee]

A while ago whilst at an art exhibition opening I met a bloke who had imbibed rather freely of the complimentary red (as had I). He explained to me that he and a few of his mates searched for cheap speculative penny dreadfulls that were in a hot sector. Over a few days they bought up a position in the stock, then via a couple of (reputable) forums started pushing it. Punters check out the chart, see the gradual volume increase, and buy in, adding to the hype with their own posts and also the increased vol. Momentum traders and the fear of missing out traders get on, with the inevitable surge in price and vol. Job done, on to the next. He even told me the share involved and I watched it all unfold. It happens and more often than you think. And he reckoned that it was getting easier as he had reached Guru status on the forums involved.
Is it tradable.... yes.... but be aware of what is driving the price, if there is only hype treat it as a momentum trade. Don't be the one left holding the can at the end of the day.

Not a bad idea maybe a bunch of us could get together and do the same thing...I'm always up for making some $$$ and I'm not sure it's breaking any laws???? And I think it says in the bible "a fool and his money are easy parted" so maybe we'd be doing gods work 2?

 

[canny]

There was someone on a couple of forums about 3 years back doing it - his nicname initials were s r.
Asked for people with large wallets - and I mean VERY large. Needed mega millions, and they said that can certainly alter the market quite easily.
Afraid I was nowhere near their money league and have to get there the hard way through research and running stock scans!!
Never mind!!

 

[gordon2007]

I still haven't seen anyone actually admit they buy shares based on someone else ramping it. Perhaps it's not as prevalent as I thought, or just that people who do it aren't too keen to admit to it.

 

[theasxgorilla]

I still haven't seen anyone actually admit they buy shares based on someone else ramping it. Perhaps it's not as prevalent as I thought, or just that people who do it aren't too keen to admit to it.

As a rule I don't go into threads on forums about stocks that my own analysis has not lead me to in the first place. It's the easiest way to avoid any influence that ramping might have.

 

[Snakey]

I still haven't seen anyone actually admit they buy shares based on someone else ramping it. Perhaps it's not as prevalent as I thought, or just that people who do it aren't too keen to admit to it.

Ok people I rode jms and made a very tidy profit ...then I saw it was recommended by Young Trader back in February last year. Nice work YT.
YT came up with another stock YML. Another jem YT and nice work again.
I kept an eye out for this new stock and sure enough as soon as YT recommended it ...it got a speeding ticket because the price raced up so
quickly. I was not going to buy over priced stock so I left them to settle for a bit before my entry. Well I got carried away with other stocks but noticed it climb again. Anyway I made the purchace at .23 250k then YT's findings were posted on HotCopper and the price went to .33..I held knowing ann due shortly. the price then dropped to .24 And I could not help myself and topped up at .25 50000. Then the ann came (not as good as I hoped for. Decided to take profit on ann because funds desperately needed else where. I had a tidy profit of $12500...So you can ride the wave of ramp but you must sell early to beat all the other holders(traders). Not an Ideal strategy but nice to have it under the belt for the occasion.
I do not consider YT a ramper...more so a respected analyst and the price moved on good analysis. But where theres movement theres money to be made. Thanks YT and canny. Cheques in the mail

 

[mrWoodo]

I still haven't seen anyone actually admit they buy shares based on someone else ramping it. Perhaps it's not as prevalent as I thought, or just that people who do it aren't too keen to admit to it.

OK, I'll put my hand up - EXT (you couldn't find a more ramped stock in the forums I reckon), CAZ and BMX were ones I bought - Pocketed very decent amts out of all three at the time. Now I wouldn't say it was my plan to buy them based on the ramping - More like I was a noob completely caught up in the fever pitched excitement I look back and realised how lucky I was to get out of them unscathed. Then along came EDE - Wow did that teach me a lesson

To answer the original q's :

Do people trade this way because of a lack of funds?
In my case funds are fine, I was just after crazy returns / shortcuts

A lack of understanding?
Definitely ! Being removed from any 'grapevine', for a while I thought the heavily ramped forums would be an alternative

Is it a shortcut?
In the long run, probably not - One mistake and you could be wiped out

Is it considered cheating?
More like dubious marketing - Insider trading would be cheating

Now am busy developing a system (I'm a programmer), this will keep me out of trouble and avoid weakness

 

[constable]

But where theres movement theres money to be made.

Too right!
It doesnt matter to me why the stock is going up, as long as it is when your trading it purely on price action.
Lets face it whether people intentially ramp or not they do alert us to some great stocks and can certainly snowball volumes. Ride the wave and get off.
At the end of the day you're in control no one else.
Plus do we give rampers to much credit for affecting sp ?! hmmm possibly

 

[canny]

All good - with the critical bit being to remember to take profits!!!

No use sitting on big gains only to see them disappear down the gurgler.

I'm sure if we truly self analyse honestly, we've probably bought stocks without doing any specific research - sometimes it might be a 'ramp' and sometimes we trust the poster. You win some you lose some, but ultimately, it's always our own decision.

I have a tendency not to read posts unless I'm interested in that particular stock. Posts with back up are always more valuable than one liners.

 

[gordon2007]

Ahhh finally some true answers. It's what I thought all along. Thanks. For some reason I just wanted confirmation and now I've got it.