Penny Stock Fraud Info
How to be a winner in the penny stock market?
I have never owned a share of anything. In the early 90s, I was very broke and looked at the Ken Roberts options manuals. I realized that paper trading has little to do with real trading and I probably saved a lot of money putting the manuals in storage.
In the late 90s I had money to invest and I wanted to get into GOLD. I researched metals on the web and found that individual investors have a huge disadvantage. Not wanting to spend a lot of time researching and learning, I decided to enjoy camping and traveling rather than having to worry about my investments.
Since I sued numerous junk faxersa few months ago and thanks to Steve Kirsch’s incredible research Anatomy of a stock fraud I am now fascinated by the penny stock market, the scammers, spammers and investors.
I began to wonder if ALL Pink Sheets and OTCBB traded companies are scams. But then I remembered that I’ve been paying for XM radio for years and Sirius is a real company too.
Why did people buy stock in AHFI and CONTINUE to purchase even after the SEC had suspended trading?
The market is loaded with suckers.
Rather than go to the casino, thousands act on those “hot tips” faxed or spammed or distributed on the many websites and forums.
Based on what I learned so far, there are two ways to become a winner:
- You follow the promoters with a track record for pumping a stock *successfully*, buying before they start the promotions and selling while the stock is still high. Or shorting when the price is inflated. It’s pretty simple, theoretically.
Of course I recommend SELLING shares of companies engaging in illegal promotions, but that doesn’t mean they won’t be a winning stock.
- You invest in real companies after thorough research.
There are of course numerous penny stocks experts offering fee based recommendations and they proudly display their track records.
The only problem is that I have no way to verify whether it’s true.
I don’t believe what I can’t verify.
This is contrary to the mentality of most investors. They will only believe that a company is bad investment when they have proof of fraud.
I would want to have proof that the company is a real business and owns the assets it claims to own.
How can the market be manipulated?
From a public forum:
“Thu 30 Dec’04 - 15:00 - 17 of 26
good luck selling i have been trying all day”
I don’t know why some people can sell and others can’t. I have no understanding of the mechanics of the market. Almost a million AHFI shares sold that day, the price went up. Why couldn’t he sell?
Are major shareholders running a Ponzi scheme?
If I had money to blow, I’d buy a few shares just to see how it works. Since I don’t, I’ll appreciate some insights from people willing to share their knowledge and experiences.
I’ll follow at least some of the spammers and junk faxers here. I’m curious to see what happens and documenting those activities might come in handy if/when the SEC and lawyers take a look at them.
Comments:
A reader asked me for advice. I gave him this link. He then wrote back:
“… Luckily I have a few safer stocks in my portfolio as well, but these micro ones that keep doing Reverse Splits are a little stressfull, at what point is the right time to get out before they do the split?”
Does he really think I ought to start researching HIS investment?
I was hoping that people would start using their brains when they read how many ways there are to get scammed and how the market is manipulated with entirely fraudulent promotions.
My posting starts with:
“I have never owned a share of anything.”
WHY ask ME? WHY ask ANYONE?
Can’t people research their own investments?
Christine
