manipulation has techniques and forms of "art
" that every investor should be aware of so as not to be fooled into playing the game that spinners do. Here are some of the most widely used methods of manipulating stocks
. The first technique is the “High Close
” thing or making the closing price higher.
📌This is done with stocks
that are not very liquid where the maker will knock on the stock
at the close of the market every day or almost every day continuously to make the price continue to rise, which creates the image that the stock
is increasing steadily, where the person who does it does not spend much money but makes the stock
price go up high, at some point he may sell and make a profit
Otherwise, the operator may want the stock
to rise as a reference price base in various cases, for example, he may borrow money with the stock
as collateral. If the stock
has a low price, he may be called more margin, etc.
📌The second kind of stock
manipulation is “Wash Trading
”. And sell orders from another broker through a nominee account to avoid being caught. The more nominees and the number of brokers used, the safer it is. Importantly, this does not require investing money into stocks
. But the commission, which is not much loss because he is an investor with a large trading volume, which allows him to negotiate with brokers, such as losing a contract, trading the same amount as agreed, etc.
📌Probably the most caught in stock
manipulation. Because it can verify the financial path of stock
trading legally, so if doing it alone, it may be difficult. But if doing it together as a group and each person already has investment money to play stocks
It can be difficult to detect this kind of manipulation.
📌The third type is called “Pump & Dump
”. "Push stocks
high and smash" by means of dragging stocks
is to spread fake news or news that is too good to be true to the wide range of investors, especially small investors who like to speculate.
📌At the same time, they buy stocks
very quickly and a lot, which will cause the stock
price to go up sharply. This is coupled with the good news that came out. Causing stock
players, especially small ones to flock to buy stocks
, pushing prices to run even higher At one point, the cyclist saw that the buying power was almost exhausted. He sold all of his shares. Make huge profits
in a short time. And the same goes for any other stock
that can do that must have a not very high Free Float, which will be able to push the stock
up without spending much money. The fourth type is "Bear Raiding
" or "Bear Hunting
". This is the opposite method. With Pump & Dump
, the person who does it usually sells the stock Short Sale
, then releases bad news, followed by a massive crash or sell, causing the stock
to plummet, which allows him to buy the stock
back at a low price and make a substantial profit
on the Short Sale
📢 The last form I'm going to talk about is "Market Cornering
" or "Cornering
". Abandoned to make huge profits
The reason is because when stocks
are bought to the point that few are left in the hands of investors, or "cornered", price control is effective.
prices are set to move in the direction the cyclist wants, that is, rising, rising, and rising every time there is "good news
", which may or may not be true. On the contrary, when there is bad news and the stock
falls. The fall would be much less than it actually was because he could accept the small number of shares to be sold.
📢 After the stock
was spun to "unbelievable
" heights as the entire market already believed in the quality and growth of the stock
and were buying and not selling. The cyclist will start to “let go
”, that is, gradually sell all of the stocks
. Make huge profits
from spinning with the art of persuading people.
📢 There are many techniques and methods of manipulating stocks
, but they are all based on the psychology of people investing in the market
, especially speculators who want to make quick money in the stock market
manipulators need to be able to understand these psychology.
📢 They also need to understand stock market
and industry conditions and have access to management. major shareholders or owners and know what they think and how ready they are to "cooperate
" in "spinning
" or "monitoring
" the share price. The reason is because if the owner "Don't play with
", there will be a risk that when the stock
goes up, it will be smashed and those who want to spin tend to be unable to buy the stock
📢 A collective arrangement in which there is a formal agreement to manipulate that stock
. Sometimes or often it's not necessary and it's probably not a good idea. Doing something different, but consistent and in line with the executives or owners who have to participate in the operation, especially in terms of promoting and issuing press releases for the business and stock
, should be more effective and It is safe to be caught by the people or government employees involved. That, in fact, is a very outstanding stock
📢 Often able to unconsciously draw people who are not involved in cycling and have inexperienced support. These people include stock
analysts and other well-established people in the investment industry. Part of the reason for this is the remarkable and consistent rally in stock
prices and trading volume, which makes everyone feel good and profitable. But that all dissipates as stocks
collapse and the truth begins to surface.
🧩 What is Pump And Dump, Pump Crypto?
🧩Pump and Dump
is to drag the price (Pump
) up as high as possible. In this process, buying pressure must be greater than selling pressure. At the point where the retail buyers are exhausted and then dump
the price to make the price continue to fall, then the whale will collect the cheap stuff to manipulate the new price.
- Pumping and Dumping is illegal.
- Because it manipulates the price of assets by using false information, fake news, and creating credibility.
- To attract the mind of retail buyers to buy assets.
- Causing the price of the asset to rise continuously for a long time
- The operator then sells a large amount of the assets he holds.
- Make huge profits from spreading fake news.
- If a Pump and Dump user owns shares of a particular company, this is illegal.
- If Pump and Dump Users in the Crypto Industry This action cannot condone anyone.
- Because using the system Decentralized therefore unable to find the mastermind But it is an act that is considered fraudulent.
🚀 Pump and Dump Process
The Pump and Dump
process does not only happen in the crypto
world. Also happens to many trading circles. Covering almost every trade such as stocks
, gold, spotted bananas, tulips, etc.
Just as an asset people have confidence that the price will continue. And there is a dealer with high buying power to control the price as needed. To generate profits
, there will be a process which is divided into 2 major steps as follows:Pump
- Traders buy Altcoins and store them in large quantities. Then gradually release the price to go up Attracts small investors' interest.
- Creating a trend to spin the Altcoin price soaring.
- When retail investors are interested and want to buy Because the trend that the price will continue is widely discussed. Then go to the next process.
- That trader sells to retailers. Retailers buy until they run out of buying power and expect the price to continue. But the price doesn't run anywhere. And the price plummeted in the end
- As a result, small investors are "stuck in the mountain" or if they sell, they will lose, so they don't sell.
- That trader earns a huge profit by selling the cheap stuff to the retail investors who buy it when the price is expensive.
- When the price had gone down He came back to buy that asset, accumulated to chase the price up and sell again.
🚀 What is Pump Crypto?
🚀 Pump Crypto
is to smash the price of crypto
coins. Causing the price to fall rapidly within a short time The vast majority of cryptocurrency crashes occur with altcoins
or alternatives. This is because the coin has low value and low liquidity.
- New or less popular Altcoins.
- Create a trend to manipulate prices, collect cheap items.
- Low-cost alternative Altcoins are therefore a good option as they cost less to collect.
- Create a trend to spin the price soaring high.
- When the price reaches the desired point will sell Altcoins.
- When the sell-off caused the price to fall rapidly. To real value.
strategy focuses on using news to generate Altcoin
flow. Build credibility popularize so that retail investors want to buy The higher the demand for retail purchases The higher the price, the more who's sell, the more profitable the they are.
🚀 How to spot Pump Coins
with pump behavior,
- Less known Altcoin.
- Altcoin prices are not that high on days when people don't care.
- Prices skyrocket or trend up quickly and for no reason.
- There are so many talks in the online world that people who don't know about it must have heard it.
🚨Less known Altcoin
The first process of pumping
the prices of big investors is to choose less well-known Altcoins
. It could be any coin on the market. Retail investors should study the details of the coin carefully before investing in the purchase of that Altcoin
, especially small Altcoin
🚨Altcoin price is not high.
The second process of pumping
is to choose a coin that is not very high in price. The reason is that it takes a small amount of capital to buy a large amount of Altcoins
. When investors buy large quantities, the price of Altcoins
increases according to the volume of purchase.
🚨The price jumped quickly.
The third process of pumping
prices is to buy in large quantities regularly. Gradually increase the price, making it attractive to investors. This process may include multiple process whales. You don't have to be a lone whale.
🚨Talking about online
When the price rises, it releases various news to keep the coin in trend. As mentioned Analysts and news are coming out in a good direction. Because the graph rises to a bull market Greed insulation point forcing small investors to buy Altcoins
at high prices.
🚨At the end of these processes
, all participating traders will gradually sell their Altcoins
at the price they are satisfied with. Some traders may set a price range. Or may sell until the price plummets rapidly.🚨
💡💡Manual trading causes traders to lose enormous benefits when Pump and Dump signals
occur. At present, there is a development of an automated trading system that can filter and trace Pump and Dump signals
to provide a service called That Trading robots that will help you in trading to make you profit easily when such Pump and Dump signals
occur without you having to do anything for you to choose from our services which StockSharp is available today. S#.PumpDetector