A summary of 9 rules How Market Manipulation works,which professionals and Securities Regulators know and understand but rest of us hardly know and understand.
No 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."
This is why some companies come up with very good financial statements and excellent performance and nothing happen to the share price or price come down. We have lots of examples, even in resent past.
On the other hand for no apparent reason share price of some companies take off to the sky. Best example is #GREG, moves with unfounded rumors.
Manipulators assume that,
i. The public is stupid
ii Public buy at high and sell at low
As long as they control the crowd they win. That's why we should not follow the crowd.
No. 2
--------
If the market manipulator wants to distribute (dump) his shares, he will start a good news promotional campaign
Something like "Company going to announce a good dividend", "Going for a split", " Bonus issue ahead", "Huge capital gain fro a disposal of an asset", or may be "Environmental Resources Limited found and unbelievable platinum deposit"
For this, news writers are hired, Cheer leaders on internet forums are hired, brokers and Investment advisers are hired. An advertising campaign is rolled out.
No. 3
-------------
As soon as the market manipulator has completed his distribution (dumping) of shares, he will start a bad news or no news campaign
The really slick market manipulators would even seed the Internet news groups or other journalists to plant negative stories about that company. Or start a propaganda campaign of negative rumors on all available communication vehicles.
You'll also see the stock drifting endlessly. You may even experience a helpless feeling, as if you were floating in outer space without a lifeline. That is exactly how the market manipulator wants you to feel.
No. 4
----------
Some stock that trades huge volume at higher prices signals the distribution phase.
When there was less volume, the price was lower. Professionals were accumulating. After the price runs, the volume increases. The professionals bought low and sold high. The amateurs bought high (and will soon enough sell low)
Intelligent traders follow the manipulator and collect.
No 5
-------------
Market manipulator will always try to get you to buy at the highest, and sell at the lowest price possible.
Just as the manipulator will use every available means to invite you to "the party," he will savagely and brutally drive you away from "his stock" when he has fleeced you
No. 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.
Like Jesse Livermore wrote, "If there's some easy money lying around, no one is going to force it into your pocket." The same concept can be more clearly understood by watching the tape.
When a market manipulator wants you into his stock, you will hear LOUD noises of stock promotion and hype. If you are "in the loop," you will be bombarded from many directions. Similarly, if he wants you out of the stock, then there will be orchestrated rumors being circulated, rapid-fired at you again from many directions.
Just as good news may come to you in waves, so will bad news. You will see evidence of a VERY sharp drop in the share price with HUGE volume. That is you and your buddies running for the exits. If the deal is really for real, the market manipulator wants to get ALL OF YOUR SHARES or as many as he can... and at the lowest price he can.
No 7
----------
Conversely, you will often be the last to know when this deal shows signs of failure
The quick slide down makes it improbable for your getting out at more than what you originally paid for the stock... and gives you a better reason for holding onto it "a little longer" in case the price rebounds. Then, the drifting stage begins and fear takes over. And unless you have serves of steel and can afford to wait out the manipulator, you will more than likely end up selling out at a cheap price.
No 8
------------
Market manipulator is well aware of the emotions you are experiencing during a run up and a collapse.
During the run up, you will have a rush of greed which compels you to run into the stock. During the collapse, you will have a fear that you will lose everything... so you will rush to exit
The manipulator even knows how to bring you back for yet another play.
No. 9
----------
A new batch of suckers are born with every new play.
The Financial Markets are a Cruel, Unkind and Dangerous Playing Field, one place where the newest amateurs are generally fleeced the most brutally.... usually by those who KNOW the above rules
Here's a artical from investnow,this discribe all.