Lot of rubbish on this thread lately about 'pump and dump'
1/Promotion. Don't confuse promotion with 'pump' . In business, all products and services need promotion and to do so you simply put you best foot forward. A job seeker does the same, as does someone selling a house, as does Big W selling toys. It's a normal part of business. Money (capital) does not grow on trees, so companies need to promote themselves, their projects, their people to capital markets to finance their operations. Existing holders, investors, staff would expect nothing less.
2/ Most promotion is done over weeks/months or years, through talks, presentation, meetings, news releases and so on. The idea that it done for a day trade is rubbish.
3/Yes, there are those that over promise and under deliver. There are projects and people of poorer quality and there are investors with notorious skill sets of amplifying poor performance on social media. But, here is the thing...........when you chart, YOU need to know what it is you are charting. It's up to YOU to learn about what you are putting your money into. Just as buyer beware applies for housing purchases, the same applies for trading. Understand what you are doing, describing price movements as pump and dumps is wrong. What you are observing is a whole lot of folk buying into something without full knowledge. The madness of markets. Learn who the people are that you should stay away from, and how to avoid poor projects. That's your job.
Learn how markets work, as describing things as 'pump and dump' is showing complete ignorance. And yes, there are plenty of psychology of a 'pump and dump' charts out there, but they also written by folk who have no idea of the true workings of markets.
4/ BHP, oil, the banks, yes you could probably use solely charting as you are not going to find out anything else as they are big enough that everyone should know all about them. Little more for you to find out.
5/ Little tin pot companies are full of people, early seed, early investors that specialise in that end of the market and are prone to selling at early stages. LEARN THAT. Also a trading halt could come at any time sending a price tumbling...........LEARN what the chances are of good news or bad news.
Describing things as a 'pump and dump' is exposing your ignorance of the markets.....how things really work. Much better to learn facts first.
.
Expand
(20min delay)