The pump and dump game
Have you played the musical chair game before ?
A group of fun loving people will dance/walk around a row of chairs with the music playing behind. Once the music stops, you have to find an empty chair to sit. To make the game interesting, there is usually one less seat for say 10 pax. That means these 10 persons have to fight to sit on the remaining 9 chairs. Once the person is out, another chair is taken away and now these 9 persons have to compete for the 8 available chairs until finally the last chair is available.
So, in the game of trading, there are people who will agreed to drive up the price of the stock to lure the retail players inside. Once they reach a certain target, they will sell down hard, leaving some of these retail players with huge amount of losses. Think of yourself not able to snatch the chair when the music stops.
I showed 3 charts that had such characteristics and though the returns are in the range of hundreds to thousands percent, I do not think I am either fast enough nor have the strong heart to withstand such trade. It is better to watch , wish them well and go on with my own business.
Once you made such astronomical returns, you are unlikely to retire with the money but by then, you would have muster enough courage to put on more positions in the next company, hoping to strike even faster and richer.
I had said before, always manage your risks and the profits will take care of itself. But, if you think you can stomach such high risks, have spare cash and like to have a thrill to spice up your monotonous life, why not? To each his own, we are all mature adults who are able to make our own decisions.
And each decisions we make come with the consequences as well. Just make sure you have adequate savings , cashflow for the family expenses and most important of all, not borrow money to bet on it. This is how one becomes greedy when easy money comes too fast. It goes away just as fast too.
Sorry, if I sound like a wet blanket and to some, may appear cowardice or think my comments are just sour grapes since I missed out on the HUMONGOUS returns.
My intention is simple, to encourage traders and investors to go in with open eyes and invest what you can afford. If someone puts a knife at your knife and force you to take the trade, then make sure it is a tiny fraction of your capital , like 0.5 -1% and always use a Stop Loss.
The last man who can stay in the game is the not the one with the highest amount of single wins but the one with consistent wins through bulls and bears season.
Be that man because you will live to tell the story to the next generation and let them be proud of you and want to model after you.
A group of fun loving people will dance/walk around a row of chairs with the music playing behind. Once the music stops, you have to find an empty chair to sit. To make the game interesting, there is usually one less seat for say 10 pax. That means these 10 persons have to fight to sit on the remaining 9 chairs. Once the person is out, another chair is taken away and now these 9 persons have to compete for the 8 available chairs until finally the last chair is available.
So, in the game of trading, there are people who will agreed to drive up the price of the stock to lure the retail players inside. Once they reach a certain target, they will sell down hard, leaving some of these retail players with huge amount of losses. Think of yourself not able to snatch the chair when the music stops.
I showed 3 charts that had such characteristics and though the returns are in the range of hundreds to thousands percent, I do not think I am either fast enough nor have the strong heart to withstand such trade. It is better to watch , wish them well and go on with my own business.
Once you made such astronomical returns, you are unlikely to retire with the money but by then, you would have muster enough courage to put on more positions in the next company, hoping to strike even faster and richer.
I had said before, always manage your risks and the profits will take care of itself. But, if you think you can stomach such high risks, have spare cash and like to have a thrill to spice up your monotonous life, why not? To each his own, we are all mature adults who are able to make our own decisions.
And each decisions we make come with the consequences as well. Just make sure you have adequate savings , cashflow for the family expenses and most important of all, not borrow money to bet on it. This is how one becomes greedy when easy money comes too fast. It goes away just as fast too.
Sorry, if I sound like a wet blanket and to some, may appear cowardice or think my comments are just sour grapes since I missed out on the HUMONGOUS returns.
My intention is simple, to encourage traders and investors to go in with open eyes and invest what you can afford. If someone puts a knife at your knife and force you to take the trade, then make sure it is a tiny fraction of your capital , like 0.5 -1% and always use a Stop Loss.
The last man who can stay in the game is the not the one with the highest amount of single wins but the one with consistent wins through bulls and bears season.
Be that man because you will live to tell the story to the next generation and let them be proud of you and want to model after you.
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