So penny stocks. A land full of scammers and pump and dumps correct?
In fact, all these REAL stories of young guys turning like 15k into 500k in a couple years or whatever.. Essentially their "strategies" revolve around pump and dumps correct? Either they pump stocks (illegal and RARE.. because the people who do this kind of shady shit remain in the shadows and aren't going to be all over the news).
Im just seeing if my logic is correct here and I get the whole picture. So essentially making money off of pump and dumps, is a strategy in itself right? And a pretty good one it seems..? I mean theres nothing illegal about making money off a pump and dump unless YOU are pumping the stock.
Is all my information basically correct?
Beware: A lot of pumpers prey on people that are trying to "spot the pump and dump"
At the end of the day, the smart take from the stupid.
There is always someone smarter than you, no matter how smart you are.
Penny stocks is a stressful and dangerous (literally) business-
Average Joe that lost his life savings to your pump and dump sometimes decide they want to smack you in the head with a baseball bat and take their money back.
yep. funny you mention that because all these penny stock gurus like timothy sykes.. They do post all their trades and shit, and they DO make a lot of money.. but I bet they do some shady shit like preying on people who try and spot the dump.
So would you say theres MORE of people A , which include people making money off of preying on those trying to spot the dumps. Or more of people B people who just get really good at predicting and "catching" pumps.
Could you please give me a crude quick example of a scenario where a pumper would prey on those who are trying to spot the pump? Or is it just simply that they convince "spotters" that they are a spotter as well and that they really think that stock X will go up?
I know penny stocks is stressful and dangerous as hell, it's very risky BUT theres opportunity to make huge money, the way I see it is it's like the drug dealing world of stocks? Since in the chaotic world of dealing drugs you can get ridiculously high returns if you know what you are doing but you can also get fucked extremely hard AND it's risky as fuck all together to begin with.
I'm still a fucking noob though so maybe im talking out of my ass. I am completely aware that I have a lot to learn. but essentially I want to start fucking around with penny stocks after 5-6 months more of reseach.. just with a couple grand.. just for the fuck of it, just to see if who knows.. maybe pennystocks will be my niche and il learn it very nicely.
Am I just completely fucking fantasizing? Or is this actually in the realm of POSSIBLE it's just very very unlikely. I mean, these success stories of these young guys who went from 20k to 200k or whatever.. They didn't get "lucky" did they..? I mean almost all of them say that at one point they fucked up and lost a huge amount.
What are some characteristics of some of these young people who learned the art of pennystocks.. do you basically just have to know and spot all the bullshit.
You theoretically CAN.
In fact I saw an interesting report on this.
There was a group of spam-analysts who tracked spam emails promoting Pump and Dumps and analyzed the charts, stocks and dates they were being pumped. They parsed hundreds of thousands of emails to eventually be able to point out which group of actors were responsible for pumping which stocks.
Anyway I don't remember it all or their methodology but they found a way to be able to predict when a stock would be pumped and then sequentially dumped and were able to make up to a million or two from using this data, with a very high successrate.
Pretty interesting, i wish i remembered more details. I'll look it up later and try to find it, interesting topic. - anyway my point is that if you managed to do something like that you could certainly profit quite handsomely.
I used to work in a boiler room.
To be honest, it's not like it is in wolf of wall street.
Very few people get rich in the boiler room. Mostly, people make 1000% on their pumps- WOW. Huge profit right, 1000%?
The problem is, 1000% of $1,000 is only $10,000.
There's a lot more money than $10,000 out there to be made in the world.
Go get a job in a boiler room. You will learn. Hopefully, you go in, smell the desperation, the fear, the greed, and walk right out and peruse another line of work.
Anyways, back in the old days, most of what we made our money on was preying on plumbers, construction workers, that kind of thing.
Now, the penny stock pumpers pay on tech workers. Google employees. NEETs-
Penny stocks is dead. Crypto coins are the new penny stocks.
The same guys that worked with me in the boiler room are shilling ETH/BTC on bitcoin forum right now
These guys, they'll all die of heart attacks at age 60. I know the guys. Lots of cocaine. Lots of unhealthy food. Lots of diseased hookers.
Stay away from these guys. They're scum.
very interesting indeed.. but that is like HARDCORE professional predicting..
For example this kid
He basically says his strategy was that he would make money on the second bounce of pump and dumps? (My terminology in this field is shit im a noob forgive me)So hed find pump and dumps.. wait until the dump and basically theres a "recovery" where it will go back up 10-30% and thats where he would make his profit...
Idk, that sounds kinda easy to me? I mean.. obviously its not easy and will require a lot of focus and more importantly.. a LOT of failed attempts thus a lot of lost money while you are in the noob stage.
But i mean.. sounds like it wouldn't be THAT hard to get good at spotting pump and dumps? According to a lot of people (correct me please if this is bullshit) pump and dumps will ALWAYS be around, suckers will ALWAYS be around and thus the strategies for making money off pump and dumps will always be the same at the core.
>very interesting indeed.. but that is like HARDCORE professional predicting..
It's all backed by math and tons of concrete trends.
They had an incredible successrate and eventually put the pump n dumpers out of business because they would keep losing money while the spam-analysts made money.
Basically... You just need A LOT of data and to be smart enough to parse it and plot it all out accurately.
In their case they had access to months and 1,000,000's of spam emails about pump and dumps. Probably even more, I don't remember exactly.
Eventually you just plot it all out and notice when it's being pumped, when it's being dumped, what stocks it usually is, how they're targeting, etc.
im not talking about working in a boiler room i dont think i ever will
I am not trying to learn how to pump and dump... and you are wrong penny stocks is definitely not dead dude, how can it be when theres tons of people still making money with penny stocks?
I have no intention of doing what you said
Basically to do what you want to do you need to think BIG and think SMART.
Think above the game.
Instead of fucking around with small shit think how can I go big and earn money off these fuckers pump and dumping stocks.
Because when you do you're hitting two birds with one stone.
- you're taking money away from scumbag criminals who are robbing some idiotic people
and 2), you're earning yourself a hefty amount of money
I worked for an online broker and had a lady that had inherited $25k of some random penny stock. She tried selling it and her trade got blocked by our trade desk on behalf of trade manipulation. Lady had to fill out a number of forms to actually sell the penny stock.
Now I don't know if that was specific to my company or an actual procedure.
It doesn't even have anything to do with the question OP asked but figured it'd be interesting for you guys to hear.
Penny stocks are old news. The guys in boiler rooms go home after work and they pump cyrpto currency.
Cyrpto currency is the new penny stocks.
In 10 years, crypto will be dead, and there will be new penny stocks.
No one knows what it is yet. My personal opinion is that it will be moon real estate.
Buying and selling real estate on the moon.
There are people RIGHT NOW who think that Bitcoins is going to replace US dollars- these are the same people that will buy real estate on mars.
hmm I see.. Yeah, very true.
I can't explain why man, but I really think that stocks is for me.. I don't want to sound like an autist but I truly believe if I put my mind to it, I will do good with stocks. Pennystocks is just one of my fun test options, my goal is to get good enough at daytrading REAL stocks where im making at least 100 bucks a day. Pennystocks will be a test just for the fucks of it to see if I hit big. All while im investing long-term on the side. For example, if I had a lot of money right now.. I would for sure look into oil (I don't care what anyone says.. i do not believe oil is dead and it will go back up.. like always) I would look into marijuana since it WILL be legalized in canada in the next 4 years.. (marijuna is going to be fucking huge in the near future) and I would also see how I could exploit this whole refugee/syrian crisis stock wise which I'm sure a fuck load of kike billionaires behind the curtains are already doing.. ALSO this asian immune to all antibiotics-virus shit thats the big new craze is going to stir some action in the stock market. (right..?)
refugee crisis, and the virus.. these are all big catalysts
Penny stocks are still a viable investment option. Lots of legitimate companies don't want to deal with requirements needed to be listed on actual exchanges and just deal in the OTC market, nestle samsung nisan etc trade OTC
penny stocks is not fucking dead man, I KNOW people that went to my high school right now who make money with penny stocks. Pump and dumps still exist in penny stocks.. Cmon, I'm a fucking dumbass noob and even I know this. I don't know much but what I do know for sure is that penny stocks are NOT dead.. maybe not as big as 5-8 years ago.. but far from dead.
can you please explain this to me.. (clear my confusion of everything im about to say ) ,OTC (over the counter) is just slang for saying penny stocks? Stocks listed on pink sheets right.
Could you explain "pink sheets" please.
is pink sheets like how there is NASDAQ?
Pink sheets is just the "stock exchange" for penny stocks? Is there only one stock exchange for penny stocks.. called pink sheets?
Also.. remember how in wolf of wall street, when jordan went to that piece of shit "Investor center" And he was talking with his new "boss" The boss replied to jordan when jordan asked where are your robots, the boss said.. Oh we just trade right off the pink sheets.
This is where I am confused, when jordan talked with someone on the phone and made him buy 5000$ worth of shares of aerotyne or whatever.. How the fuck did the transaction even fucking work? Like, was the person on the phone saying YES to jordans offer of 5000$ worth of shares ENOUGH to confirm the trade..? HOW DOES IT EVEN WORK. For example you go to a store, you pick some shoes, u bring to the cashier.. cashier scans shoes u give money you get shoes.. ta da you just purchased shoes.. Now please explain how it happened with jordan on the phone with the guy who purchased 5000$ worth of aerotyne shares.
All the people pumping and dumping penny stocks quit when that stupid wolf of wall street movie came out.
That movie was a disaster- it really wizened up your average plumber.
I said it before and I'll say it again- crypto is the new penny stocks. I made more in a few years buying/selling cryptos than I did in a decade in the boiler room
Also.. when jordan shit his pants when the guy told him you keep 50% as commissions.. cause "thats the markup we charge for our services".
So "Investor Center" was just a shitty small firm that trades off the pinksheets.. and therefore "Investor Center" has the choice to chose what percentage commission they want.. Just how a store has the option to charge however much they would like for a pair of shoes.
So most professional firms like the one Jordan was working on in wall street charge like 1-2%, but since Investor Center dealt with pink sheets and thus a much much dumber clientel.. they can make their commissions 50% without anyone going "hey why is your commission so high"
Also I don't get how since Jordan sold 10k worth of the share, 5k went in his pocket. Like were the people they were talking on the phone fully AWARE of the 50% commission thing? So when the dude payed jordan 10k, was he aware that he really would only get HALF the shares he paid for since half of the money automatically has to go to jordans commission earnings? So the guy basically fucking paid jordan 5k JUST for jordans "labor" of getting the dude the shares
OK bro here it goes
OTC refers to over the counter, and can be any place where trades happen that are not actual exchanges.
Pink Sheets were listings where penny stocks were listed, but often times people refer to penny stocks as pink sheets.
Penny Stocks are low priced securities and their defenition changes depending on who you talk to. The SEC says it's any stock less than $5 dollars and trading in any OTC market. But keep in mind that different brokers have different rules for trading penny stocks, some require you to have a certain ammount of cash or account value to purchase and some even have their own defenition of what they consider a penny stock.
No idea on your wolf of walstreet question as I worked when there was computers and everything was prefunded. My guess is that the person made a commitment to buy the shares at a certain price and the broker provided them to him at that price once the money was received.
Stratigies I used for bitcoin?
Bought the shit for $250, sold it for $825.
Reinvested my money at $225, sold it for $350.
I bought a *lot* of ETH a few days ago. We will see if I make money or lose my shirt.
Using a stock simulator, I was able to make $4000 in a week and $3000 the second week using penny stocks.
I have no confidence I can replicate the success for real, but my question is...
How hard is it to sell when you need to? Sometimes there's only a window of a few minutes that you get and if the sell doesn't go through, you're fucked.