”How does the pump and dump merchant manage to convince independent brokers and media to issue positive guidance for a stock. Do they pay them?”
In some cases yes. It was happening when I first started my career on the old trading floor in Bond St. Still happening now trust me. I spent much of my working life in high frequency trading firms too. It’s now pretty rife especially in the US where there are teams working around the clock on these type of forums. They’re after small moves in the price so you’ll notice they’re focused on the day to trade moves. Ever wonder why they get so excited about days like yesterday when nothing has changed but the price popped up.
Generally they’ll post everything they can get their hands on such as reports from obscure research houses that mention anything slightly positive. Or it could be a slight increase in price overnight in the US. They will make sure everyone knows about it. When someone tries to call them out they have their attack dogs come in with the abuse to try and deter them from speaking up. Sound familiar? It’s a high stakes game these days and incredibly profitable for the HFT firms. Just a shame the small investors are usually the ones who eventually lose out.
TLX Price at posting:
$26.74 Sentiment: Sell Disclosure: Held
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