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October 21, 2013 @ 03:06 PM
AGUA

Post: 490

Join Date: Jun 2012

Location: Boston, MA

Has anyone else ever read about this? I came a across it a while ago and found it to be pretty interesting, especially the story of the kid in high school who flipped 5,000 to 50,000 in a few days using the technique. 

Anyone else interested in this stuff? It seems like the penalties aren't that severe and it can be easily undetectable using stocks that wouldn't or aren't targeted to be involved in things like this. 


For anyone who isn't aware:

"Pump and dump" is a form of micro-cap stock fraud that involves artificially inflating the price of an owned stock through false and misleading positive statements, in order to sell the cheaply purchased stock at a higher price. Once the operators of the scheme "dump" their overvalued shares, the price falls and investors lose their money. Stocks that are the subject of pump and dump schemes are sometimes called "chop stocks". 

IE - Purchase stocks, hit up message boards and spam info involving the stock, then sell it once others invest, and then the price collapses. 
October 21, 2013 @ 03:15 PM
REVS

moderator

Post: 3434

Join Date: Dec 2011

Location: Philadelphia, PA

I've also looked into it. And from some articles I've read, it really doesn't seem to have very harsh penalties if you were to be suspected or caught, for the most part. I think you would have to really search through different stocks, and find one that would fly easily under the radar.

It's crazy yet very sad that people will listen to something like this and actually invest. You could also choose to keep some of the actual chop-stock during the collapse, it would obviously look far more sketchy if you were to sell every stock you owned in it right before the actual collapse, if you kept a smaller portion of the stocks invested, it may look like less of a red flag.  

I prefer carcinogens to endorphins.

October 21, 2013 @ 03:22 PM
Pantic

Post: 3550

Join Date: Jan 2010

Location: cold north

I don't see this working without having lots of money to invest. You aren't gonna influence the stock value with 5k, and no one is gonna buy stocks because AUGA on hypebeast said it was smart unless they can see for themselves that it looks profitable
October 21, 2013 @ 05:06 PM
IveyAlumneye

Post: 198

Join Date: Apr 2008

Location: Цюрих, Швейцария

We could do this if we found something in an emerging market, had someone who could fluently speak the language, and infiltrated twitter and facebook, maybe a few financial forums, maybe even create a fake website. However, to return even close to 20% we would have to have about 50K for even the smallest securities acquisition. As previously mentioned 5K isn't going to make a small dent. You would be better off buying into BlackBerry in leu of its recent merger and acquisition, and just hope for the best.
October 21, 2013 @ 05:33 PM
SHARKlN

Post: 5135

Join Date: Apr 2012

What ever happened to predictability? The milk man, the paper boy, and evening tv? 
October 21, 2013 @ 05:59 PM
origins

Post: 1543

Join Date: Dec 2011

How about... do it the right way.

http://getsupreme.bigcartel.com/

October 21, 2013 @ 06:17 PM
trevxv3

Post: 1820

Join Date: May 2010

Location: SoCal

No what he did worked because he pumped up penny stocks and diversified the fuck out of his investments. Basically the dude had 5000 in start-up and just went through and put a couple hundred bucks in all of these super small businesses. Then when he went on the boards and yahoo finance and told everyone "hey look, this company had a huge jump (like a couple hundred percent increase in their dividends because of his investment) they are definitely worth a shot". So then all he needed was a couple people to invest a relatively small amount of money and then, bang, short-sale and cash in. It took a lot of small investments and only worked because the internet and the market back then was basically unregulated in small shares and what not. 

The emerging market idea is probably the only way this would work. I don't think hyping stocks would last very long, in the present circumstances, before you get shut down. 

SATIRE GANG OR MOW YOUR LAWN FOR FREE

October 21, 2013 @ 06:47 PM
Sentimental

Post: 1340

Join Date: Nov 2012

Location: L.A.

Im actually doing this for my econ class. Dropped 100k on mcdonald shares. McRibbs coming back yall

Fuck Off.

October 21, 2013 @ 07:27 PM
playboyxxx

Post: 909

Join Date: May 2011

Location: naw

has anyone here ever made real money off stocks? how much?

pink like hamilton

October 21, 2013 @ 08:40 PM
EEK A LURKER

Post: 1212

Join Date: Nov 2012

Auga lets buy stocks in hypebeast together

.wa do dem.

October 21, 2013 @ 08:45 PM
truuuchainz

Post: 593

Join Date: Jul 2012

making money from penny stocks usually involves putting over an insane amount of money into them and then lieing to people about potential earnings if they do invest

you wont get anyone to invest into a penny stock unless they just started investing last night or are retarded
October 21, 2013 @ 08:59 PM
Soul Rize

Post: 2003

Join Date: Dec 2010

Location: Houston

has anyone here ever made real money off stocks? how much?
i have its my only hope to make it to a millionare. but you gotta have a teacher or someone to guild you in the beggining for else your gonna fall face first in the beggining and maybe your whole career. you also gotta have this gut feelings thats RIGHT most of the time.
making money from penny stocks usually involves putting over an insane amount of money into them and then lieing to people about potential earnings if they do invest

you wont get anyone to invest into a penny stock unless they just started investing last night or are retarded
you can easily make money of penny stocks with small money like $500 to 1000 its the best way to increase your start in investing imo. i made it to 3k from 500 and now i can invest in mid cap and small cap stocks confortablly. no reason to go back once you made it thru tho its just no worth .

Cmon get down with a real nigga wussup

October 21, 2013 @ 10:47 PM
Homes

Post: 506

Join Date: Oct 2008

Location: Seattle

has anyone here ever made real money off stocks? how much?
i have its my only hope to make it to a millionare. but you gotta have a teacher or someone to guild you in the beggining for else your gonna fall face first in the beggining and maybe your whole career. you also gotta have this gut feelings thats RIGHT most of the time.
making money from penny stocks usually involves putting over an insane amount of money into them and then lieing to people about potential earnings if they do invest

you wont get anyone to invest into a penny stock unless they just started investing last night or are retarded
you can easily make money of penny stocks with small money like $500 to 1000 its the best way to increase your start in investing imo. i made it to 3k from 500 and now i can invest in mid cap and small cap stocks confortablly. no reason to go back once you made it thru tho its just no worth .
Just to make it clear to anyone thinking about getting into investing, you most definitely cannot "easily make money off penny stocks." They are extremely volatile and literally some of the sketchiest and most risky investments you can make. I would highly encourage you to invest in almost anything else.

Soul Rize, if you actually did make money off of penny stocks, understand that it was a fluke and you got lucky. If I had to guess, I'd say you made that money within the last year or so in a climbing market that has been reaching record highs. Everyone is making money, often with little fundamental reason backing their investments. I'd also encourage you to do some more learning if you think you can invest "comfortably" in any kind of stock with just $3k. That is not nearly enough to have a safely diversified portfolio, and you are going to be very sad when the inevitable market downturn hits.
October 21, 2013 @ 11:18 PM
REVS

moderator

Post: 3434

Join Date: Dec 2011

Location: Philadelphia, PA

making money from penny stocks usually involves putting over an insane amount of money into them and then lieing to people about potential earnings if they do invest

you wont get anyone to invest into a penny stock unless they just started investing last night or are retarded
I feel like there is always a margin of people who will get suckered into something like this, or else it wouldn't be occurring or an issue that is so present the Securities and Exchange Commission feels the need to keep an eye on it.  

I prefer carcinogens to endorphins.

October 21, 2013 @ 11:28 PM
IveyAlumneye

Post: 198

Join Date: Apr 2008

Location: Цюрих, Швейцария

I started with a pretend Google Finance portfolio in grade 9 after getting really interested in finance at a young age ( my father was a CFO for a rather large insurance company). I used my summer job income to buy almost my entire Google Portfolio in real shares. My portfolio on a good day is worth around 200K now in just over 10 years. I have beaten the S&P Index and NASDAQ by around 13% annually. All I can say is if you are serious in finance, get a degree, do a co-op for a good sized firm and be prepared to take loses when they come. Also read whenever you get the chance, and learn to speak another language. I had a bunch of Russian friends in university and their constant scheming behind my back sparked my interest in Russian so I took it throughout University and am now fluent, about 30% of my portfolio is in Russian stocks, which most people would probably tell you to avoid at all costs. You have to go with your gut, but also rely on math when needed.
October 21, 2013 @ 11:33 PM
Captain Al

Post: 1653

Join Date: Feb 2013

I started with a pretend Google Finance portfolio in grade 9 after getting really interested in finance at a young age ( my father was a CFO for a rather large insurance company). I used my summer job income to buy almost my entire Google Portfolio in real shares. My portfolio on a good day is worth around 200K now in just over 10 years. I have beaten the S&P Index and NASDAQ by around 13% annually. All I can say is if you are serious in finance, get a degree, do a co-op for a good sized firm and be prepared to take loses when they come. Also read whenever you get the chance, and learn to speak another language. I had a bunch of Russian friends in university and their constant scheming behind my back sparked my interest in Russian so I took it throughout University and am now fluent, about 30% of my portfolio is in Russian stocks, which most people would probably tell you to avoid at all costs. You have to go with your gut, but also rely on math when needed.
what kind of math would you suggest one to take?

tumblr: bankpaper.tumblr.com Instagram: @bankpaper

October 21, 2013 @ 11:36 PM
REVS

moderator

Post: 3434

Join Date: Dec 2011

Location: Philadelphia, PA

I started with a pretend Google Finance portfolio in grade 9 after getting really interested in finance at a young age ( my father was a CFO for a rather large insurance company). I used my summer job income to buy almost my entire Google Portfolio in real shares. My portfolio on a good day is worth around 200K now in just over 10 years. I have beaten the S&P Index and NASDAQ by around 13% annually. All I can say is if you are serious in finance, get a degree, do a co-op for a good sized firm and be prepared to take loses when they come. Also read whenever you get the chance, and learn to speak another language. I had a bunch of Russian friends in university and their constant scheming behind my back sparked my interest in Russian so I took it throughout University and am now fluent, about 30% of my portfolio is in Russian stocks, which most people would probably tell you to avoid at all costs. You have to go with your gut, but also rely on math when needed.
what kind of math would you suggest one to take?
College level - Algebra, Business/Non Business Calculus, and probably Micro/Maco Economics to start. 

I prefer carcinogens to endorphins.

October 22, 2013 @ 12:04 AM
IveyAlumneye

Post: 198

Join Date: Apr 2008

Location: Цюрих, Швейцария

In my opinion when I'm looking for new investment securities I almost ALWAYS use the Gordon Equation which is quite simple (I can honestly say I'm not the strongest math whiz around) the equation is : Return= Dividend Yield + Growth. Also when I look to manage financial risk, I always use Standard Deviation (SD) which seems like a complex calculus equation but it is really quite simple. Just constantly refresh your math knowledge, work on your times tables, just make math seem useful to yourself so when you see a complex financial statement you can easily do the basic addition/subtraction/multiplication/ division quickly. The worst thing you can do is read a financial statement and not know within the first 30 seconds whether or not the security is going to be a boom/bust.
October 22, 2013 @ 12:13 AM
TASK

Post: 659

Join Date: Mar 2011

Most people here aren't accounting for the massive spreads and poor liquidity found when trading OTC BB products. You're gonna get shitty fills trading penny stocks. IMO trading equities/ derivatives isnt the road to quick cash

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