subject: DAGMA Shares 5 Scams To Avoid In Stock Market Newsletter [print this page] DAGMA Shares 5 Scams To Avoid In Stock Market Newsletter
Scams and the stock market seem to go hand and hand. Scammers have long used many five different methods to try to dope people out of their money. The scam may come is a fax, stock market newsletter, or email, but no mater how the scam is delivered the five forms of it are always the same.
1. Pump and Dump
In this common scam, the person to be scammed is given information that the price of a stock is about to skyrocket for some reason. The scam artist owns a large amount of whatever stock they are touting. When people believe the scammer and buy the stock it cause the price to go up. At that point the scammer sells his stock and makes a large profit.
2. Selective and Deceptive Performance Reporting
This scam is all about making investors think that investing in certain stocks will earn them large profits. The scammers back up their claims with "proof" in the form of statistics. Sadly, when the investors buy the stocks they later find that there was no profit to made in it and that the statistics were only a result of number manipulation.
3. Getting Rich with Penny Stocks
People define penny stocks in different ways. However, most people except a penny stock is any stock that trades for less than one dollar per share. Some penny stocks even trade for is low is one hundredth of a penny per share. That means if a stock worth half a cent were bid on by several people it could easily double in value to one cent. This looks great it had a 100% increase in one day. However, in reality it only increased by half of a cent and that half of a cent was most likely due to people bidding on it and not a sign of how well the company behind the stock is doing. Penny Stocks are more gambling than investing and should be avoided by the serous investor.
4. Tout Sheets
Beware of tout sheets. In short, tout sheets are often the front end of pump and dump or other scam. They often give long winded explanations of how great a company is and how that company stock is sure to go through the roof in price very soon. After convincing you of this they go on to tell you to buy stock in that company now before prices go up and while you can still make a large profit. Investors who fall for their claims are often victims of scams.
5. What about Selling?
The internet is full of companies that make amazing claims about their stock picks. Some companies say they will make gains for investors that are is high is 500%. The condition is the investors buys and sells when they are told. What they do not tell investors is that they are often running some form of investment scam that will hurt the investor in the long run. Real companies focus on buying stocks and holding them, not buying them and then selling them shortly after for big profits.
A great company that does not scam people is DAGMA. DAGMA Market Update is an investment tool that makes reasonable claims. They choice stocks from blue chip companies and exchange-traded funds. DAGMA offers its clients average return of 30% and have provided profitable outcomes 75 out of 78 times. There track record proving this can been seen at www.daggettmarketanalysis.com. They do not participate in the scams that so many internet companies do and instead provide their customers with real investment information and strategies on their webpage and in their stock market newsletter.
