Yep. You'll come across firms that spread news about finding a possible cure for cancer or making a drug that eliminates diabetes. This is a classic example, and although it touts that its vaccine has gone through stage 2 testing, that still isn't proof of the drugs validity. Daytraders will ride this stock all day and drag in all sorts of people who will buy high so that they can sell off their shares or "dump" them on uneducated investors before the news hits that the drug is worthless.
So the pump and dump is the classic scam. Any others I should be wary of? Also, how can I detect them before they get the best of me (and my money) ?
Damn. This stupid stock went past 6 today to 6.34, and I'm kicking myself for selling it around 5.25.
Yep it went past 6 to 6.34 and then crashed all the way to 5.15 so unless you could have sold it perfectly you're still ahead.
Yep. I'll take a 10% gain any day to avoid a crash like that.