It’s called a pump and dump. He calls up his pals privately and says what stock? They decide on X, then they buy as much as they can. THEN he starts talking about his tariffs on whoever, makes it a deal, telegraphs the day it’s happening. The day comes, the stocks crash, he tells the rubes ‘‘buy now’’ the rubes are buying it up, he pauses the tariff, the rubes drive the price back up fast, they see it going up in real time and FOMO into a buying frenzy (PUMP), the club members then DUMP the stock. Selling all their shares while it looks to be going up. Then it crashes again, because they sold significant amounts. The rubes value gets wiped out. The end.
Can we figure out how to profit from this? Not really. If there’s one fact in stocks it’s that once it’s news your two steps behind. The methodology of these scams is being in on it before it happens. And the next problem is, if you ‘buy the dip’’ and wait till it’s peaking again to sell, at what point does your stock broker service actually sell? Because they have A LOT of latitude, and many have been accused of not even buying the stocks ordered and just wait for the sell order, then buy and wait for the value to exceed what you’re owed and then selling.
It’s called a pump and dump. He calls up his pals privately and says what stock? They decide on X, then they buy as much as they can. THEN he starts talking about his tariffs on whoever, makes it a deal, telegraphs the day it’s happening. The day comes, the stocks crash, he tells the rubes ‘‘buy now’’ the rubes are buying it up, he pauses the tariff, the rubes drive the price back up fast, they see it going up in real time and FOMO into a buying frenzy (PUMP), the club members then DUMP the stock. Selling all their shares while it looks to be going up. Then it crashes again, because they sold significant amounts. The rubes value gets wiped out. The end.
Can we figure out how to profit from this? Not really. If there’s one fact in stocks it’s that once it’s news your two steps behind. The methodology of these scams is being in on it before it happens. And the next problem is, if you ‘buy the dip’’ and wait till it’s peaking again to sell, at what point does your stock broker service actually sell? Because they have A LOT of latitude, and many have been accused of not even buying the stocks ordered and just wait for the sell order, then buy and wait for the value to exceed what you’re owed and then selling.