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?
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?