5 Things {YOU NEED TO} {FIND OUT ABOUT} Penny Stock Promoters

Ahhh, penny stock promoters.

If you’ve been {going out} {with this} blog {for some time}, you’ve probably seen {a few of} my past take-downs of penny stock promoters.

{Such as this} latest stock pump, or this career criminal, or this female Wolf of Wall Street.

I call out bullshit when I {view it}, {nonetheless it} might surprise {one to} {understand that} I don’t actually hate penny stock promoters.

{After all}, I hate it when their games cause unsuspecting, uneducated {visitors to} {lose cash}. And {I must say i} hate it when celebrities leverage their fame and fortune {to create a|to produce a} quick buck off {a cent} stock scheme.

{Need to know|Wish to know} about penny stock promoters? Then {just click here}

But I don’t hate penny stock promoters themselves – {I take advantage of} them for predictable profits {therefore} {in the event you}.

I’ve been trading {a lot more than} fifteen years now, and {for the reason that} time, I’ve learned {how exactly to} predict stock moves {because of} the manipulation {developed by} penny stock promoters {and obtain} {before} their games.

My first millionaire trading challenge student just made $25,000 {last week} shorting {a vintage} penny stock promoter pump & dump

{You need to} read this free penny stock guide {to understand} what {we realize} about profiting {from} promoters’ tactics, but first, {there are some} things you {have to know} {about how exactly} they operate.

Table of Contents

{That are} stock promoters?

Penny stock promoters aren’t some mythical puppet-masters pulling strings behind the scenes, {plus they} aren’t Darth Vader level evil (well, {many of them|a lot of them} aren’t…).

Stock promoters {are simply just} individuals or companies {which are} hired {to greatly help} raise money and media buzz to artificially inflate {a cent} stock’s price {to ensure that} insiders to liquidate or insiders to enrich themselves by raising capital at artificially inflated prices. They’re paid in either cash or company stock {and so are} typically compensated {predicated on} how successful their efforts are.

What do stock promoters do?

Stock promoters achieve their goal of raising money or mentions for {an organization} using a {amount of} different techniques.

{For instance}, {they could} pay {to put} an ad in {market} newspaper or magazine touting a stock as “{another} big thing.” {They could} {distribute} mailers saying {a similar thing}, hoping to catch {individuals who} want {trading} success to be as simple as {functioning on} the “hot tips” they find.

{They could} take {a lot more} unscrupulous actions, like leaking fake {pr announcements} or hyping some BS new product to the media or trolling {trading} forums, hoping to ignite viral {fascination with} a stock that wouldn’t otherwise deserve it {alone} merits.

Basically, what they’re {attempting to} achieve {would be to} create an artificial runup on {confirmed} company’s stock – {and they’ll} pay five, six and sometimes seven figures on the promotion {given that they} have {an incredible number of} shares {they would like to} unload at higher prices.

The pump and dump

{Among the} strategies stock promoters use {is named} the “pump and dump.” Here’s what happens…

Let’s say that I run {a little} biotech company and I’m {having difficulty} {obtaining a} loan {from the} traditional bank. Hell, {because of this} example, I’m {likely to} be generous and say that I’m a legit company that’s actually {attempting to} bring {something} {to advertise} ({despite the fact that} most {very cheap stocks} traded on the pink/grey sheets and the OTCBB don’t have real products at all, {the only real} product they’re {thinking about} truly selling is their stock).

You, a stock promoter, {arrived at} me and say, “Tim, {I understand} you’re {having difficulty} {obtaining a} loan. I’m {likely to} {offer you} $25 million in cash now {in trade} for 25% {of one’s} company’s floated stock at a discounted rate.”

I’m thrilled, {and are also} you. You {venture out} and start {owning a} major ad campaign {discussing} how my company is poised {release a} revolutionary technology – that it {appears like} my company {may be the} next Microsoft.

Predictably, amateur traders see your ads and {pr announcements} {plus they} act. They buy, {in line with the} “hot tip” that you published. You {relax}, watch the stock {rise} {and} cash out once my stock {appears to have} hit its peak.

Everybody wins – {aside from} the retail traders that got totally screwed {once the} stock collapsed {once you} pulled out and made millions.

That’s a simplistic explanation of {how are you affected} behind the scenes, and it’s {only 1} {kind of} strategy penny stock promoters use to profit.

You don’t {have to know} {all their} strategies by heart. {For the present time}, {what you should|what you ought to} know is that {this kind of} manipulation happens {at all times|constantly|on a regular basis|continuously}. {The work} of a stock promoter isn’t {to provide you with} sound investment advice – it’s {to create} money for themselves and for {the firms} {they enhance} and that’s why ALL penny stock promoters “newsletters” are free, they burn {individuals} who don’t pay them anything {plus they} enrich {those that} do pay them.

That’s why I’m SO {pleased with} my educational newsletters {that} cost {just a little} $, {nevertheless, you} know who I’m loyal to, my students first {most of all}, because {easily} burn my subscribers, they cancel, {exactly like} they do with penny stock promoters galore, and {the reason why} I have {probably the most} # of PAYING subscribers {is basically because} I work my butt off 17 hours/day educating them with watch lists, commentary, trade alerts {and today} 3,000+ video lessons!

{Having said that}, that doesn’t {imply that} penny stock promoters can’t be {beneficial to} you…

Promoters aren’t trustworthy, {however they} {are of help}

That sample “pump and dump” scheme I described above? It’s fraud – {basically}. But it’s fraud {that occurs} every day {in the wonderful world of} {very cheap stocks}.

I’m not {letting you know} {all this} to scare you, although {I am aware} if that {sort of} description {enables you to} {desire to} run as {a long way away} from {trading} as possible. {In the end}, {how will you} even {commence to} {contend with} promoters {which are} {on the market}, intentionally manipulating the markets {for his or her|because of their} own game?

{The truth is}, I don’t want {one to} try to {compete keenly against} them.

{Consider} stock promoters {just like the} sharks of the ocean. They’re {on the market}, swimming around and {searching for} their next meal. {In the event that you} swim {to their} path, you’re {likely to} get eaten. But {what goes on} {in the event that you} swim {using them}, {rather than} against them?

Penny stock promoters are {on the market}, {and you also} can’t fight them. {Nevertheless, you} can {figure out how to} {use} them {through the use of} them {to identify} patterns.

Use promoters {to identify} patterns

Here’s how I – Tim Sykes – work in the “pump and dump” scenario described above…

{I understand} {the majority of the} stock promoters operating today, and I’ve studied how {all of them} does business.

I follow different {resources of} investment information, {this means} I {start to see the} signs of a potential stock manipulation {decreasing} {the street}.

And {I understand} {just what a} penny stock’s chart {appears like} {whenever a} promoter’s scheme hits {when i} outline {in a number of} live penny stock trades HERE because I’ve watched as these promotions {have already been} carried out {previously|during the past} and learned from the hundreds upon {a huge selection of} examples I’ve {observed in} action.

So {prior to the} first mailer hits {the initial} unsuspecting retail investor, I’ve already spotted the pump and dump in the making.

I sometimes {have a} long position with {the entire} understanding and expectation that {the purchase price} will crash or halt {at some time}, hence why when {I really do} buy it’s only VERY early in {a cent} stock promotion, NOT late. I’ve already set my mental stop point {in my own} head {in order that} {I understand} when {to obtain} out {to be able to} maintain my preferred risk-reward ratio. This prevents me from getting {swept up} in the stock’s upward price momentum, {securing} longer than {I will} and getting squeezed {consequently|because of this}.

{Moreover}, I’m also {searching for} opportunities to {have a} short position {because the} pump and dump plays out. Unlike {the majority of the} amateurs {getting back in} on the action, {I understand} this stock {will|will probably} crash and burn {at some time} and the crashes are brutal, 30%, 50%, sometimes 70-90% all {per day} or two…please watch these key penny {trading} videos {to raised} understand.

{In order} long {when i} {will get} the shares to short, I’m {likely} {to create} bank {once the} penny stock pump crashes. Most retail investors {are likely to} {lose cash} on the stock {since they} don’t realize the manipulation nor do they realize {they are able to} profit {once the} stock crashes, but I’ve set myself {around} make money {over and over} on {almost every} penny stock pump that spikes enough (although sometimes I can’t find shares to short {and much more} often lately many penny stock pumps fail entirely from the {start} and there’s no play {for me personally}).

And that, my friends, is {the method that you|the way you} {make the most of|benefit from} stock promoters.

{Learn to|Figure out how to|Discover ways to} spot stock promoters’ schemes

If you’re {starting} out, {I wish to|I would like to} issue you a word of caution. The scenario above {may appear} straight-forward, but it’s {a very important factor} {to learn} about stock promoter schemes – it’s {a completely} different thing to execute {in it} in {true to life}.

Suppose {you’ve got a} sense {a} certain stock {has been} promoted, {nevertheless, you} don’t know when {to obtain} in, when {to obtain} out or when to {have a} short position. {In the event that you} don’t recognize the patterns – {due to the fact} you’re {not used to} {the overall game} – {you may} hold on {too much time}, leaving you in {exactly the same} boat {because the} retail traders who fell for the promoter’s “hot tip.”

{Realizing that|Understanding that} manipulation {is happening} and {having the ability to} {benefit from} it are two {various things} entirely.

{Just what exactly} {is it possible to} do? Like I said earlier, I don’t want this to scare you off. {Because the} {amount of} millionaire students I’ve {had the opportunity} {to generate} shows, {anyone can} {learn to|figure out how to|discover ways to} recognize these schemes and {make the most of|benefit from} them.

{However the} key phrase {there’s} “learn.”

penny stock checklist

When I was {a} trader, I made mistake after mistake after mistake, all because I didn’t have somebody {to instruct} me. I didn’t have somebody {showing} me the ropes and help me avoid falling {in to the} traps these trading scenarios {can make}.

Obviously, I learned {what realy works} and what doesn’t, but {I’d} {have already been} successful much {previously} {easily} hadn’t had to count so many losses among my wins.

{I wish to|I would like to} {function as} teacher who {can help you} {learn to|figure out how to|discover ways to} navigate penny stock promoter manipulation.

You don’t {need to} take nearly {as much} losses {when i} did early {in my own} trading career. {I could} cut your learning curve {in two} by sharing with you my hard-won knowledge that lets me recognize {whenever a} scheme {is happening} and {know very well what} plays {to create} to come {from} top.

{Desire to} pick my brain? {Observe how} I handle {just how} penny stock promoters manipulate {the marketplace}? It’s all {obtainable in} my millionaire trader challenge. If you’re {prepared to} {learn to|figure out how to|discover ways to} ride the waves promoters create, {just click here} {to become listed on} me {inside}.

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