What are the tell-tale signs that a penny stock is a pump and dump?
Hi everyone,
I've been making investments since I started receiving a paycheck. Nothing too risky - just buy and hold reputable stocks. I'm that average dull guy with most of his savings poured into ETFs and S&P500 - always choosing the safe path.
As you understand, penny stocks weren't among my investing preferences, but I met an old pal some time ago. We hadn't seen each other since college, and I was impressed by the progress he made in only five years. He said that most of his money comes from penny stocks and scalping, and despite his complaints of stress and insane risks, his story made me think that I should try it out.
I don't plan to do any scalping or everyday trading. I have a day job that I love. But I don't mind finding a few companies with a high chance of quickly growing into something bigger. Also, I don't expect to discover the new Apple or Google. My goal is to find something I could invest in for a short term, say a month or two, and get a small profit.
I've been experimenting with trading simulators like https://stockmarketgame.net/ for several months, and I feel confident enough to start risking my money. I plan to spend only the amount I'd leave in a casino, and I'm not the most avid gambler.
What I doubt is my ability to make the right choice. I know how important it is to conduct proper analysis and check companies' backgrounds, but I also know that pumps and dumps are very good at building the right impression - there are a lot of "awesome" projects in my mailbox.
How would you tell that a company is a fraud? Is there any sure way to know that it's pump and dump? I'd really appreciate it if you could share any penny stocks' red flags that keep you from getting scammed.
Thanks in advance for your help.
Submitted July 07, 2023 at 04:11AM by Sensualbuffalo39 https://ift.tt/j7sYQE9
