From Scambusters
<>~<>~<>~<>~<>~<>~<>~<>~<>~<>~<>~<>~<>~<>~<>~<>~<>~<>
"Hot" Stock Tips: Ever Wonder What Would Have Happened if
You Had Bought Those Stocks That Are "About to Skyrocket"?
<>~<>~<>~<>~<>~<>~<>~<>~<>~<>~<>~<>~<>~<>~<>~<>~<>~<>
Have you ever wondered if you're missing out on a great
investment opportunity by NOT investing in the "hot" stock tips
you receive in your e-mailbox?
Joshua Cyr decided to find out. On May 5, 2005, he decided to
track what would happen if he purchased 1000 shares of every
stock for which he received a hot stock tip via spaham
(misspelled intentionally).
Naturally, he didn't actually waste money on this experiment.
Instead, he just pretended to buy the stocks and kept track of
their value on a website he created (so he never actually
bought the stocks). He simply tracked what would have happened
if he had actually purchased these stocks based on the stock
tips.
Joshua expected that he'd get temporary, short-term windfalls
on all these stocks and then see big losses.
What he found instead surprised him. Almost ALL of the stocks
went up a few cents at most, and then dropped dramatically the
next day. So, no short term windfalls.
Joshua tracks the stocks real time at his site, so you can see
how he's doing at any moment.
==} http://www.spamstocktracker.com
As we write this, he would have spent $17,405.00 to buy the
stocks, and their current value is $9,897.90. That's a net
loss of $7,507.10 -- or 43%!
Joshua didn't lose any money -- he was just pretending.
Unfortunately, the people around the world who actually bought
these stocks on the "hot" stock tips they received did lose
money.
Naturally, the scammers who send out these emails often make
money. This type of scam is called "pump and dump," and it's
the most common type of investing scam.
Here's how it works: Scammers buy shares of a thinly-traded
stock at a low price. They then praise the stock via email (or
other means), and they often claim that they have special,
secret information that they are sharing with you.
When people buy the stock based on this supposed stock tip, the
price of the stock is artificially "pumped" up.
The scammers then "dump" the shares they own, driving the stock
back down. The people who bought at the higher prices usually
lose money when they sell.
The SEC catches some of these scammers. However, it's next to
impossible to regain the money you lost.
Action: NEVER buy stock based on a hot stock tip from spaham or
based on what you read on the investment message boards or chat
rooms. The chances are excellent that it's a scam. And now you
have Joshua's experiment to confirm you are NOT missing a great
opportunity. ;-)
For more tips on investing safely, visit:
==} http://www.scambusters.org/investing.html
<>~<>~<>~<>~<>~<>~<>~<>~<>~<>~<>~<>~<>~<>~<>~<>~<>~<>
"Hot" Stock Tips: Ever Wonder What Would Have Happened if
You Had Bought Those Stocks That Are "About to Skyrocket"?
<>~<>~<>~<>~<>~<>~<>~<>~<>~<>~<>~<>~<>~<>~<>~<>~<>~<>
Have you ever wondered if you're missing out on a great
investment opportunity by NOT investing in the "hot" stock tips
you receive in your e-mailbox?
Joshua Cyr decided to find out. On May 5, 2005, he decided to
track what would happen if he purchased 1000 shares of every
stock for which he received a hot stock tip via spaham
(misspelled intentionally).
Naturally, he didn't actually waste money on this experiment.
Instead, he just pretended to buy the stocks and kept track of
their value on a website he created (so he never actually
bought the stocks). He simply tracked what would have happened
if he had actually purchased these stocks based on the stock
tips.
Joshua expected that he'd get temporary, short-term windfalls
on all these stocks and then see big losses.
What he found instead surprised him. Almost ALL of the stocks
went up a few cents at most, and then dropped dramatically the
next day. So, no short term windfalls.
Joshua tracks the stocks real time at his site, so you can see
how he's doing at any moment.
==} http://www.spamstocktracker.com
As we write this, he would have spent $17,405.00 to buy the
stocks, and their current value is $9,897.90. That's a net
loss of $7,507.10 -- or 43%!
Joshua didn't lose any money -- he was just pretending.
Unfortunately, the people around the world who actually bought
these stocks on the "hot" stock tips they received did lose
money.
Naturally, the scammers who send out these emails often make
money. This type of scam is called "pump and dump," and it's
the most common type of investing scam.
Here's how it works: Scammers buy shares of a thinly-traded
stock at a low price. They then praise the stock via email (or
other means), and they often claim that they have special,
secret information that they are sharing with you.
When people buy the stock based on this supposed stock tip, the
price of the stock is artificially "pumped" up.
The scammers then "dump" the shares they own, driving the stock
back down. The people who bought at the higher prices usually
lose money when they sell.
The SEC catches some of these scammers. However, it's next to
impossible to regain the money you lost.
Action: NEVER buy stock based on a hot stock tip from spaham or
based on what you read on the investment message boards or chat
rooms. The chances are excellent that it's a scam. And now you
have Joshua's experiment to confirm you are NOT missing a great
opportunity. ;-)
For more tips on investing safely, visit:
==} http://www.scambusters.org/investing.html