Manipulating the Market and Still Not Winning

August 17th, 2011

I can’t tell if this game is worthwhile

I get an email something like this every day: “Read This Entire Report Now, Timing is Critical Understand XXXX is completely different from ANY profile that I have done this ENTIRE year!! Why? Because, XXXX is a company that I will be profiling for weeks to come because I believe I have discovered the hottest China play that Wall Street has seen this year! Bold statement? – just read on and see why… I have to WARN YOU….. This stock has the potential to grab Wall Street by storm just like my NAZDAQ play handed investors 300% Gains in days!”

I follow up

I then look up the stock symbol to see its current value and then I look at the graph for the past months or the past year. The stock value is almost always below 50 cents, usually below 10 cents and my first thought is that I have to buy a huge quantity of shares in order to make a decent amount of money and then I wonder what the broker will say when he sees my order and then I drop all ideas of playing the game.

The game

The game is an easy one and it makes good sense. Someone, the initiator, picks a stock that has very little value and starts emailing the stock symbol with a note like that above, promising that the stock will rocket and a buyer can then sell and make a killing. The objective is to get thousands of people placing buying orders for millions of stocks thus pushing the price up. The initiator will be the first to sell, even at a small rise and before everyone else realizes that the price has stopped rising and that they should sell. The drop in price will instant and dramatic and the initiator and some other good thinkers will have made themselves hundreds and maybe thousands of dollars at the cost of a 2 phone calls and brokerage fees.

Supply and demand

It actually is a great game, based entirely on the theory of supply and demand and a long list of email addresses. If one were to play conservatively, say buying 5,000 shares and selling as soon as there is a 5 cent profit, it means you would be making $250 per game, about $1,000 per week, not bad for very little outlay. The risk is minimal. At worst, meaning you missed the “selling-moment”, you will be left holding 5,000 share which may even start breathing again one day in your lifetime.

Why don’t I?

I don’t know. It is very tempting. I get letters from a few different initiators and this morning, and what prompted this article, I even found one in my junk-mail box, meaning that someone has somehow acquired a mailing list and is zapping out emails as fast as he can. I’m sure that if he understands the game well he will make some money on his initiative. I think I’m going to try this…

This entry was posted on Wednesday, August 17th, 2011 at 4:07 am and is filed under Business, Economy, Finance, Money, Personal / Internet. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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