The $100 million pump and dump case

Here’s how you avoid the pain...                                                                                                                                                                      Good Morning! Hot news is spreading around the markets this week. We had CPI numbers come in slightly under economists' expectations… Yesterday the Fed announced a 50-point rate hike and the markets fell off a cliff before rebounding… And in the middle of all of that, another big story dropped that might interest penny stock traders more than those macro headlines… Yesterday news spread that the SEC charged multiple Twitter pumpers with [fraud]( and fined them $100 million. [StocksToTrade’s Breaking News Chat]( alerted it… But while this news is interesting, it’s not the first of its kind in penny stocks. Promotions run rampant. Sometimes pumpers get caught — sometimes they don’t… So if you want to trade penny stocks — pumps and manipulation are things you have to get used to. And you have to know how to trade these pumps, not just blindly follow them like all the chat sheep that got murdered. It’s good to see a bit of justice come for those who got taken advantage of. But the better way to stick it to the man is to invest in yourself and your education. In the [SteadyTrade Team]( we traded some of these FinTwit pumps — but we didn’t believe the hype… Learn from these to become a self-sufficient trader… The SEC Takes Down Pump and Dump Ring The problem with any pumper is they alert followers to a stock, but they never give them any details about their entries, exits, stop losses, or even [trade plan]( or pattern. They call out a ticker and followers buy it. That’s it. That’s why a lot of people get caught in the inevitable crash. They have no idea what they’re doing… But manipulators can be creative with their tactics — [read the court documents that go into detail about the pumpers' schemes here](. The best way to avoid those losses is to learn [how to trade for yourself]( Past Pumps Although we like to trade some [chat pumps]( we don’t follow them because we need hot stock picks. We just try to ride the wave of [momentum]( they can bring. In mid to late 2021 we traded DatChat, Inc. (NASDAQ: [DATS]( a ton. This was a pump that went from $4 to over $18 over a few months. You can see on the chart that for the five biggest days of its run-up, it had a [red-to-green]( move every single day… DATS chart: 3-year, daily candle — courtesy of [StocksToTrade.com]( In the [SteadyTrade Team]( we trade patterns — then we move on when a stock is dead. Now DATS is trading at 41 cents. Could you imagine holding a stock that long without cutting a loss? That’s the importance of [rules]( and [risk management]( — two things not enough traders use. But before DATS there was Camber Energy, Inc. (NYSE: [CEI](. This massive pump even impressed me… This stock squeezed from roughly 50 cents to almost $5. CEI chart: 2-year, daily candle — courtesy of [StocksToTrade.com]( This one had a lot of gap-ups, so the best trades were the multi-day [breakouts]( and breaks above the previous day’s high. Another one of his pumps that tanked was ContextLogic Inc. (NASDAQ: [WISH](. There are probably still chat sheep holding and waiting for it to go to $20 as he said. That's when the stock was around $8 to $15 dollars. Now it’s at 63 cents. These are the types of dangers that are out there for traders who don't trade with a process, plan, risk level, and rules. All things I teach in the [SteadyTrade Team](. Sadly the potential for easy money appeals to too many people. So they follow others and end up losing big in the end. Meanwhile, if you put in a little bit of work, you can learn to trade repeating penny stock patterns and not rely on anyone else. After all, that’s the reason people want to get rid of their 9-5 jobs, right? They don’t want a boss or anyone telling them what to do. But chat sheep still rely on someone to feed them picks. And once their leader is gone, they have no idea how to make their own money in the markets. Don’t be a sheep. Learn how to trade the markets and move swiftly in and out of trades in the [SteadyTrade Team](. Have a great day everyone. See you back here tomorrow. Tim Bohen Lead Trainer, StocksToTrade   sponsored   REPLAY STREAMING NOW:Tim Sykes Winter Glitch Event [>> Click here to stream OR press play below <<]( sponsored   [[BRAND-NEW] Ultimate Options Trading Blueprint]( Mark Croock just dropped his [brand-new options trading blueprint]( And it’s perfect traders with small accounts… And for a limited time, it's free! [<< Click here now to claim your blueprint before it's too late >>]( Recommended Membership Gifts   ACCESS NOW: Click to activate these complimentary membership gifts and receive daily market intel. [To The Moon Report Weekly Stock & Crypto Watchlist]( [Mark Croock Evolved Trader Daily](   [Facebook]( [Twitter]( [Instagram]( [YouTube]( [Spotify]( [Click Here to Unsubscribe]( (As an Amazon Associate, we earn from qualifying purchases.) 13809 Research Boulevard, Suite 500, Austin, TX 78750 *Please note that these kinds of trading results are not typical. Most traders lose money. It takes years of dedication, hard work, and discipline to learn how to trade, and individual results will vary. Trading is inherently risky. Before making any trades, remember to do your due diligence and never risk more than you can afford to lose. This is for informational purposes only as StocksToTrade is not registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. StocksToTrade cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. StocksToTrade in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, StocksToTrade accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns. Copyright © StocksToTrade.com