Penny Stocks: Five Wicked Schemes To Avoid

Whenever there is the possibility of making a lot of money, you can bet that there will also be scammers who will try to deceive people. The trade of penny stocks can give very important returns in a very short period of time. However, you should be careful to do so, because the penny stocks are much more vulnerable to scammers, because they are not regulated by the SEC (the Securities Commission is the federal agency that regulates the shares), and the price is much more Easy to manipulate than others. stock

Here are 5 of the most common fraudulent actions: 

Penny Stock Scam Spam 

This is a general variant of the “pump and discharge” scheme. Scammers buy a lot of shares, usually in a company with little activity, where there is very little publicly available information, and then cheat (“inflate”) through unsolicited emails to people whose email they receive from the list (s), this exaggeration creates a wave of exchanges, which quickly increases the price and then sells it with a big gain (“dump”). Believe it or not, you get an answer to the return of 6%! Never NEVER buy actions based on unsolicited emails. This is definitely a scam, no matter how ingenious it seems. 

People who request privileged information in the forum.

Be very careful with this. Sometimes this is a scammer in the classic “pump and dump”, but there are also well paid consultants hired by companies to announce their actions in the forums. They are professionals, and they KNOW what they do. They know how to make a credible story with false press releases, etc. They also understand that subtle “faults” (pretending to be random) in the forum can be more effective than frank action promotion.

Short circuit and distortion.

Here is another “variation of pumps and dumps” quite common. The scammer sells short stocks at the beginning. Then, instead of inflating it, he reads it badly to get people to throw him into a crowd and artificially control the price so he can make a package.

Bad messages – wrong numbers, leaving “hot tips”,

The SEC says that this is the last “pumping and unloading” scheme. Here you get a message from someone you do not know, who leaves a review of a friend’s action: it makes it look like they were accidentally typed and accidentally left a message, BUT IT IS NOT RANDOM. Be careful with any information you receive in this way, and, probably, tomorrow there will be another variation of this “accident”. 

Penny Stock Free Picks

Anyone who is really well versed in penny stocks will not give you their best options, even the good ones, for free. Collecting pennies is a very specialized skill that few people can do, and it takes a lot of time. Finding a really good tool for collecting coins is like finding a rare diamond, and they will not provide this information for free. Free samples are very often “pumps and dumps”. Beware of anything “free” in the world of a penny. This can very easily end up costing you most of your investment. 

Now, the easiest way to obtain substantial gains with penny stocks.

Find a coin collector with an incredible ability to collect pennies. Let them send you their options without delay and then follow exactly what they are doing. This type of service will not be free, but if you choose the right service, you can easily get your money back many times. I used this method from davenport laroche to obtain a very significant benefit.