Saturday Q&A: How to find pump & dumps and how long does it take to learn to trade

1. Do you pay attention to the overall market and does that affect the stocks you trade?
2. How does the amount of shares a stock pumper is compensated relate to and affect the volume in a pumped stock?

Video #2:

1. How do you find pumped stocks and stock promoters?
2. What is the general learning curve for trading stocks as you do?

Disclosure: No positions in any stock mentioned. This blog has a terms of use that is incorporated by reference into this post; you can find all my disclaimers and disclosures there as well.

Watchlist for February 18th

PACR – Potential long.

UCTT – Potential long, some people in chat made money off of Preston’s call today (he beat me by 5 seconds or so in finding this breakout).

EGTK & BEAC – Pump. No clear play, but just watch these.

REED – Getting a pump, which is odd considering it is a Nasdaq stock.

AENY – ALFSS, but this pump refuses to die, which is why I’m not short.

Disclosure: No positions in any stock mentioned. This blog has a terms of use that is incorporated by reference into this post; you can find all my disclaimers and disclosures there as well.

The inevitable conclusion to any pump & dump: Charts of CNWI, CRWG, PEPR

CNWI – This pump only lasted a couple days and then had a huge gap down when further pumping failed to materialize.

cnwi

CRWG – A low-volume longer-term pump. Three big down days have eliminated most of its gains.

crwg

PEPR – Pumpers love new OTC listings and ticker changes. Again this only lasted a couple days. Most of the volume appeared ‘fake’ to me, occurring in huge block trades.

pepr

Disclosure: No positions in any stock mentioned. This blog has a terms of use that is incorporated by reference into this post; you can find all my disclaimers and disclosures there as well.

Trade recap for February 16th

Not much. I just bought one pump looking for a gap up … no matter what happens I will sell it near the open tomorrow.

Daily profit: $0.00

Disclosure: Long 17,000 ISPI. No positions in any other stock mentioned. This blog has a terms of use that is incorporated by reference into this post; you can find all my disclaimers and disclosures there as well.

Watchlist for February 16th

XCHO – Sketchy OTC BB company that is connected to NPHC. Up huge, but still only $0.48. No easy play on this.

xcho

PIR – Nice breakout at $6.00 with some volume. This is an historically choppy stock.

pir

RNN – Amex biotech hype play. I’m short-biased but it could have another good day.

rnn

SRTI – From no volume to 5.5m shares traded. I won’t buy because I hate buying Pink Sheets stocks, but this could be interesting if continued volume and a green hold.

srti

Disclosure: No positions in any stock mentioned. This blog has a terms of use that is incorporated by reference into this post; you can find all my disclaimers and disclosures there as well.