Article Reviews, Trading

Deadly Art of Stock Manipulation

I chanced across an interesting article titled The Deadly Art of Stock Manipulation. It’s a quick low-down on how the stock markets work, and definitely worth reading. The book Reminiscences of a Stock Operator goes into more detail on how stock manipulation is done, but the article is a pretty good summary.

The 10 rules highlighted are shown below. The website goes into more detail for each point.

  1. All sharp price movements — whether up or down –are the result of one or more (usually a group of) professionals manipulating the share price.
  2. If the market manipulator wants to distribute (dump) his shares, he will start a good news promotional campaign.
  3. As soon as the market manipulator has completed his distribution (dumping) of shares, he will start a bad news or no news campaign.
  4. Any stock that trades huge volume at higher prices signals the distribution phase.
  5. The market manipulator will always try to get you to buy at the highest, and sell at the lowest price possible.
  6. If this is a real deal, then you are likely to be the last person to be notified or will be driven out at the lower prices.
  7. Conversely, you will often be the last to know when this deal shows signs of failure.
  8. The market manipulator will compel you into the stock so that you drive up its price shares.
  9. The market manipulator is well aware of the motions you are experiencing during a run up and a collapse and will play your emotions like a piano.
  10. A new batch of suckers are born with every new play.


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