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Pump and Dump Strategy

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1 Pump and Dump Strategy on Thu Apr 30, 2015 8:16 am

This is very risky, so I don't want to recommend this, but something that I have done with some success is to try to identify pump and dump stocks, buy right at the beginning of the pump and sell at 20%-30% gains less than an hour later.

Strategy involves:

1. Recognize the pre-pump and dump pattern.
2. Best setups are NASDAQ or NYSE listed $1-$2 stocks. Avoid unlisted stocks.
3. Buy right at open of the pump.
4. Sell about 45 minutes later.
5. Sell half at 20% gains, Sell other half at 30% gains. Set tight stop loss (5%).

What I believe happens, is that companies that are at risk of being delisted due to low share price hire promotion companies to pump thier stocks so that they can remain listed.

I believe these stocks are garbage, but I do believe that a profitable strategy does exist.

Use at you own discretion. Comments?

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2 Re: Pump and Dump Strategy on Thu Apr 30, 2015 1:25 pm

Do you use scanners to find good pumps? Or just keep researching companies until you find ones that might eventually get pumped? I usually only ever notice good ones after people start going off about it on stocktwits.

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3 Re: Pump and Dump Strategy on Thu Apr 30, 2015 4:17 pm

I haven't really implemented into a scan yet (but might be worth a shot), but there is a definite pattern. I can't post links yet in the forum, but I will once available.

There are also a few websites that track pump and dumps and upcoming pump and dumps.

You can also try signing up for all the pump and dump newsletters such as superlativestocks, allstarstockpicks, etc. and get in right on the alerts and get out quickly.

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4 Re: Pump and Dump Strategy on Thu Apr 30, 2015 4:54 pm

I signed up for those. I'll check out the links too when you post them and update once I pull the trigger on something.

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5 Re: Pump and Dump Strategy on Thu Apr 30, 2015 4:57 pm

Later on today, I'll check my brokerage statements and post some examples where this was successful.

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6 Re: Pump and Dump Strategy on Thu Apr 30, 2015 6:38 pm

Ok, here are some examples from my account, some more profitable than others, but most were in a timeframe of around an hour or so:

1/9, bought AXLA, 2500 shares 2.27, sold 2.52 for $625 gain. This one was a little higher priced that the usual ones I've played.

2/6, bought EVRY, 3000 shares 1.25, sold 1.63 for $1,110 gain. Pretty much perfect for the small amount of money invested.

2/13, AMRS, this one didn't work out. Bought at 2.36, sold at 2.16. 1000 shares, $200 loss.

I do think there is a strategy for this out there, but need to be cautious obviously.

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7 Re: Pump and Dump Strategy on Mon May 11, 2015 9:40 am

Just took another shot this morning with a KOSS pump and dump alert from Superlative stocks (scam company, obvious pump and dumps, but as long as you know that, you can profit). Bought 2000 shares for 2.52, sold at 3.10, 4 minute hold time. $1056 profits.

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8 Re: Pump and Dump Strategy on Tue May 12, 2015 8:36 am

Maybe APPS for today. If you go for it, go small, get in and out.

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9 Re: Pump and Dump Strategy on Tue May 12, 2015 8:58 am

PMCB getting heavily pumped. I don't go for below $1/share though.

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10 Re: Pump and Dump Strategy on Tue May 12, 2015 9:08 am

Hmm, maybe too low volume on APPS. I'm gonna skip it. Good luck to any gamblers.

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11 Re: Pump and Dump Strategy on Tue May 12, 2015 7:40 pm

To spell out one pump and dump strategy as best as a can without being too vague, here is one thing to try:

1. Open your brokerage account at 9:25AM and get to the order screen. Fill everything out except the ticker symbol and the quantity.
2. Go to this link http://www.investorsstockalert.com/ and keep refreshing it until the pump and dump stock pick finally arrives right at 9:30AM. Note, this site does not have a pick every day, but seems like ever 2-3 days.
3. As soon as the stock pick arrives, throw the ticker in the order screen of your brokerage. If it is NASDAQ or NYSE listed and between $1 and $3, buy as much as you are willing depending on how much you want to risk (try $1000 if you are doing this the first time just for the experience, then move up to $2000 the next time and finally $5K after you are more comfortable and working with house money). If it is under $1 or not NASDAQ/NYSE listed, pass - DO NOT BUY.
4. Now the exciting part. Watch it rise (or fall if the pump and dump is not working) and sell it at 20-40% profits. I usually sell half at 20% and let the rest ride to 30%-40% with a 10% safety stop. It usually only takes a few minutes to a half hour.

If you are interested, go ahead and backtest a bunch of the picks from the link shown above in step 2. Like I said earlier, this is not for the risk adverse personality. But I have had very good success with it.

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12 Re: Pump and Dump Strategy on Tue May 12, 2015 7:51 pm

To be clear, only 1 or 2 of these NASDAQ/NYSE picks is made each month, so they aren't an every day thing. You just need to be ready as if they are going to be the good pick at 9:30.

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13 Re: Pump and Dump Strategy on Tue May 12, 2015 7:54 pm

The last NASDAQ pick was COOL on April 20th before the new one KOSS described above. I missed that one since we were at a doctor's appointment for one of the twins.

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14 Re: Pump and Dump Strategy on Wed May 13, 2015 2:49 pm

Be ready tomorrow morning.

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15 Re: Pump and Dump Strategy on Thu May 14, 2015 12:42 pm

Today's pick was below $1 so I passed. MNGA. It appears it didn't rally.

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16 Re: Pump and Dump Strategy on Thu May 21, 2015 3:00 pm

I'm getting in on the pick for tomorrow (given it meets the needed criteria).

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17 Re: Pump and Dump Strategy on Thu May 21, 2015 4:30 pm

Yep, locked and loaded and ready right before 9:30 tomorrow morning.

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18 Re: Pump and Dump Strategy on Fri May 22, 2015 9:32 am

Damn. I was all hyped up for this too.

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19 Re: Pump and Dump Strategy on Fri May 22, 2015 10:31 am

Extreme micro cap.

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20 Re: Pump and Dump Strategy on Fri Jun 12, 2015 10:04 am

Would have been a good one today, but I didn't play since I stay away from the sub dollar picks.  INPH was the pick.  Rediculous 80-90% 10 minutes gains though if you were willing to take the risk.

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21 Re: Pump and Dump Strategy on Fri Jun 12, 2015 11:06 am

Damn I didn't see the email last night. I would've held off too though.

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