10 Signs Your Stock is Being ManipulatedFeb 11 Written By David StoneDisclaimer: This post does not constitute financial advice. Author has a long position in Gilead. Do your own due diligence before making an investment.Modern day investing (at least in the short term) has become totally distorted by Wall Street manipulators
.You can spend weeks analyzing financials, company management, and growth prospects, determine a business is fantastic, only to watch it slowly disintegrate.Your stock just keeps dropping.And dropping.And eventually you sell.A year later you check in on the stock and see that it’s doubled, tripled, or gone parabolic.This isn’t bad luck. Wall Street manipulated your stock and stole your shares. They know you check the price every day. They know you get angry when you see it dropping for no reason.It’s all part of their psychological manipulation toolkit. This has become much easier with the invention of the internet and social media. Decades ago, manipulators had to publish hit pieces in the newspaper. Now all they have to do post a few comments on a stock message board. Decades ago, they had to come up with elaborate lies worthy of being published in a reputable newspaper that investors would take seriously. Now all they have to is make an account like SuperBullishInvestor, and post a comment like, “This stock is poop. Glad I sold it.”The only way to protect yourself against this manipulation is to learn how to spot it. Here are 10 ways to recognize if your stock is being manipulated by hedge funds and Wall Street parasites.
1. Your stock is disconnected from the indexes that track it. Without any new developments, most stocks will drift upwards. This is due to inflation, and growth. Humans create stuff. We go to work every day and create value.Watch the indexes that hold your stock. If they’re going up, and your stock is going down, then someone is selling, or more likely, shorting it.This causes you to become frustrated as you watch other (possibly worse companies) go up in value, while yours lags behind. The more frustrated you are, the more likely you are to sell.
2. Nonsense negativity on social media.There are two different types of negative posts. The first is well thought out negative posts that show why a company isn’t doing well, or isn’t going to do well, usually backed up by data. These are fine. Usually posted by real people. Some companies are bad, and they rightfully deserve to tank.But the second type of negative post is one like: “This stock is garbage!” This is nonsense.These are posted by paid manipulators or inexperienced investors frustrated by the direction of the stock price.You can ignore these. Just mute the accounts and move on.
3. Price targets by random users that are far below the current price.Manipulators are using what’s called the anchoring effect. If your stock is currently at $70, they’ll say things like “I’m a buyer at $50.” This causes you to question your investment thesis. Did you get in too early? Is bad news about to drop?Your brain becomes attached to the 50 number. There’s science to prove it. You can even test it with your friends. Ask one friend if he thinks Abraham Lincoln was older or younger than 50 when he died. Then ask that same friend at exactly what age do they think Lincoln died. Odds are they’ll give a number around 50 due to the anchoring effect.Now, ask a second friend the same set of questions, but change the age from 50 to 100.Odds are the second friend will give a number closer to 100.
LTR Price at posting:
$1.52 Sentiment: Buy Disclosure: Held
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