Detecting the Pump and Dump Can Make You Rich

Back to my Penny Stock Experiment again. As I told you all yesterday, I suspected that the rapid rise in the price of BPUR: NASDAQ was a pump and dump. I am glad that I sold when I did.

So what is a pump and dump? Well someone or some group somewhere promotes the stock, usually through the Internet, and then sells when all of the suckers buy in high. I just bought 4000 shares for $0.2580 per share. I will hold these in anticipation of some FDA approval for clinical trial news (which I am convinced is a no-brainer) or for the next pump and dump.

USA Only

Canada, UK, Australia

For your information, the pump and dump is easily detectable. For me, if the stock starts rising rapidly and there is no news at Google or Yahoo, then it is a pump and dump. I will sell when I think it is maxed out. With this stock, when I saw the price slide by more than 2 cents from its daily high then I sold. So far I have made over $1000 US Funds.

Just so you know…I do not let a computer monitor my this process. I manually watch it and manually execute the trade. To me it is worth a few hundred or perhaps a thousand dollars to take 3 or 4 hours to monitor the progress of the pump and dump.

To sell or not to sell is the big ‘if’ in this equation. But look at it this way. If you have made 40-60% on your investment why not cash out? If you sell before it does max, don’t fret…you still have made some good returns.

Anyway I am back in and this is round three of owning this stock. Whether I win or lose at this stage does not matter. I am now using my profits to play my little game.

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