Pump and Dump Info:
================= Pump/Dump? How it Really Happens ==============
From the BHUB Board:
Posted by: Charlatan
Date:3/28/2007 7:46:59 PM
Post # 10726
Message Board Pump and Dumps??
Want the real story how these plays unfold ?? It's simple realy and there is no scam involved. Since Seabreeze continues to PM me telling me what a horible "pumper" I am I thought I would tell you exactly how this works.
1. An indivual discovers something of intrest. He PM's his buddy and his buddy PM's his buddy. Here on Ihub alot goes on behind the scenes people don't see. Alot of folks here on Ihub are also involved in daytrading chat rooms or yahoo instant messenger groups. This intial speculation and buying will cause the stock to get the notice of the T/A traders. Then the momo picks up as people start telling thier friends. Message boards are created, all that DD is then made public. Everyone and there brother wants a peice.
2. The second wave of buying is what normaly runs the stock. Momentum groups, day trading rooms etc.. Because those few folks found something they felt was promising they of course loaded the boat before telling anyone... we all would do the same thing. That dries up the shares so that day traders a momo traders can run the stock up. Daytraders and Momo traders need positive volume to continue making profits.. as long as the momo is there.. they will keep coming back for more each pullback from a rally. That contant support on the lows is what drives the run... not some pump or what is being said on a message board.
3. At some point the stock tops out, the money flow cannot keep u with the demand to sell the shares. Folks who bought low and held long have enormous gains. The stock finds itself loosing first support, the momentum slow and folks start taking profit. At this point is where things go bad... So lets think about that...
You just discovered something about a stock that made you feel it would go to the moon. You buy a ton at super cheap prices. Say you buy $10,000 at .0001. Now the same thing you discovered is found by others... they also load up. Becuase you find yourself posting about the same stocks you form a consensus. You create a board. Momentum builds as momo groups and daytraders jump in on the frenzy. Now your $10,000 investment is worth $230,000 dollars. I'm sorry... I don't care who you are.. if you didn't dump your stock at that point you have to be a MORON !! So Joe Snuffy dumps his 100M shares at the bid... how do you think $230K in volume hitting the market is going to go ?
NOBODY... I REPEAT NOBODY that's not best friends with someone tells anyone they are selling out. Maybe they mention after the fact but even in daytrading rooms nobody talks about when they sell. Now there nothing wrong telling your MB buds your buying.. infact thats whats so much fun about daytrading rooms. To conclude... Pinklawyer didn't do anything anyone of the rest of you wouldnt have done. If you were believing the story and falling in love that was your mistake. You trade the "hype" not the company. If the Hype starts loosing momo.. it's time to get out. Thats what happened to BHUB.. the hype died when folks staring at a 10 bagger couldn't resist taking the money.. hell who woudlnt.
....z
Do NOT view my Profile!! (i.e. click on zardiw)
