OK PB, let's clear up some of the rubbish posted here.
Pump and Dump is just another unexamined cliche, thrown around by talking heads and other un-informed commentators.
Let's examine it..........
I presume it means to 'increase the price of a share' to 'pump' Although, technically speaking you can use a pump to raise/lower, move sideways, or simply circulate any material..at least in engineering terms.
But back to shares.
1/ If you believe in the fairy tale of a "pump", what you are really referring to is some sort of positive/favourable information on a particular stock. It could be a broker upgrade, annual report, a view from your favourite poster, or wild speculation on social media. I think if we tried we could come up with a list of 40/50 types of positive information that could have a positive effect on the share price. An oil shock in the Mid-east could be another one.
BUT, here's the thing. It's YOU, yes you, that needs to examine that info and decide if it really is good. Your responsibility.
2/ Ok, so you think the info is good. Well the next thing YOU need to do is examine the source of that info. Who communicated that info to you. Is it reliable, or is it fake. That is your responsibility.
3/ Next, you need to evaluate the market conditions. I think VMM is a good example now, in that positive info keeps getting sold into because the raw material price has collapsed. You don't want to buy if market conditions are no good. It's up to YOU to examine market conditions.
4/ But here is the BIG one. If you believe it is a 'pump' YOU are denying yourself the time and ability to conduct proper market analysis as I've shown above (amongst others, as the post would be too long). You deny yourself knowledge. And the next thing...........YOU will blaming the 'pumpers'. You will be behind, and you increase the chances of failing, or, the chance to maximise your results.
I never refer to a stock as a 'pump' I ALWAYS look at proper market analysis to make a decision and LEARN.
And learn I do. That's the NUMBER ONE edge we give ourselves.
the presentation of favourable info is common in society. If someone sells a house they will 'promote' the good features whilst downplaying, or hide the poor. A politicion seeking re-election will always answer questions favourably whilst downplaying the unfavourable.....and right through to our Justice system whereby you are presumed innocent (the good) until shown otherwise.
But why, WHY is the good always highlighted and the bad (or poor news hidden)
It's because of who we are. Each and everyone of us tends to brag/highlight/display what is good about us while hiding our mistakes (the bad).
So, trading is really about people. Understand that, and you go along way to understanding how markets work. To refer to a 'pump and dump' is displaying complete ignorance as to what REALLY is driving price movements. Next thing you will be saying their is collusion, insiders, closed groups and so on...........all unexamined cliches in themselves.
(20min delay)