The Deadly art of STOCK MANIPULATION

RULE NUMBER ONE:
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 should explain why a mining company finds
something good and" nothing happens" or the stock goes down. At the
same time, for NO apparent reason, a stock suddenly takes off for the
sky! On little volume! Someone is manipulating that stock, often with an
unfounded rumor. In order to make these market manipulations work,
the professionals assume: (a) The Public is STUPID and (b) The Public
will mainly buy at the HIGH and (c) The Public will sell at the LOW.
Therefore, as long as the market manipulator can run crowd control, he
can be successful. Let's face it: The reason you speculate in such
markets is that you are greedy AND optimistic. You believe in a better
tomorrow and NEED to make money quickly. It is this sentiment which
is exploited by the market manipulator. He controls YOUR greed and
fear about a particular stock. If he wants you to buy, the company's
prospects look like the next Microsoft. If the manipulator wants you to
desert the sinking ship, he suddenly becomes very guarded in his
remarks about the company, isn't around to glowingly answer questions
about the company and/or GETS issued very bad news about the company.
Which brings us to the next important rule.



RULE NUMBER TWO:
IF THE MARKET MANIPULATOR WANTS TO DISTRIBUTE (DUMP) HIS SHARES, HE WILL START A GOOD NEWS PROMOTIONAL CAMPAIGN.

Ever wonder why a particular company is made to look
like the greatest thing since sliced bread? That sentiment is
manufactured. Newsletter writers are hired -- either secretly or not
-- to cheerlead a stock. PR firms are hired and let loose upon an
unsuspecting public. Contracts to appear on radio talk shows are signed
and implemented. Stockbrokers get "cheap" stock to recommend the
company to their "book" (that means YOU, the client in his book). An
advertising campaign is rolled out (television ads, newspaper ads,
card deck mailings). The company signs up to exhibit at "investment
conferences" and "gold shows" (mainly so they can get a little "podium
time" to hype you on their stock and tell you how "their company is
really different" and" not a stock promotion.") Funny little "hype"
messages are posted on Internet newsgroups by the same cast of usual
suspects. The more, the merrier. And a little "juice" can go a long way
toward running up the stock price. The HYPE is on. The more clever a
stock promoter, the better his knowledge of the advertising business.
Little gimmicks like "positioning" are used. Example: Make a
completely unknown company look warm and fuzzy and appealing to you by
comparing it to a recent success story. The only reason you have been
invited to this seemingly incredible banquet is that YOU are the main
course. After the market manipulator has suckered you into "his
investment," exchanging HIS paper for YOUR cash, the walls begin to
close in on you. Why is that?



RULE NUMBER THREE:
AS SOON AS THE MARKET MANIPULATOR HAS COMPLETED HIS
DISTRIBUTION (DUMPING) OF SHARES, HE WILL START A BAD NEWS OR NO NEWS
CAMPAIGN.


Your favorite home-run stock has just stalled or
retreated a bit formats high. Suddenly, there is a news VACUUM. Either
NO news or BAD rumors. I discovered this with quite a few stocks. I
would get LOADS of information and "hot tips." All of a sudden, my
pipeline was shut-off. Some companies would even issue a news release
CONDEMNING me ("We don't need 'that kind of hype’ referring to me!).
Cute, huh? When the company wanted fantastic hype circulated hither
and yon, there would be someone there to spoon-feed me. The second the
distribution phase was DONE.... oops! Sorry, no more news. Or, "I'm
sorry. He's not in the office." Or, "He won't be back until Monday."
The really slick market manipulators would even seed the Internet
newsgroups or other journalists to plant negative stories about that
company. Or start a propaganda campaign of negative rumors on all
available communication vehicles. Even hiring a "contraire" or"
special PR firm" to drive down the price. Even hiring someone to
attack the guy who had earlier written low about the company. (This is
not a game for the faint-hearted!) 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. See Rule Number Five below. He may
also be doing this to avoid the severe disappointment of a "dry hole"
or a "failed deal." You'll hear that oft-cried refrain, "Oh well,
that's the junior minerals exploration business... very risky!" Or the
oft-quoted statistic, "Nine out of 10 businesses fail each year and
this IS a Venture Capital Start-up stock exchange." Don't think it
wasn't contrived. If a geologist at a junior mining company wasn't
optimistic and rosy in his promise of exploration success, he would be
replaced by someone who was! Ditto for the high-tech deal, in a world
awash with PhD's. So, how do you know when you are being taken? Look
again at Rule #1.Inside that rule, a few other rules unfold which
explain how a stock price is manipulated.



RULE NUMBER FOUR:
ANY 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). In older books about
market manipulation and stock promotion, which I've recently studied,
the mark-up price referred to THREE times higher than the floor. The
floor is the launch pad for the stock. For example, if one looks at
the stock price and finds a steady flat line on the stock's chart of
around 10p , then that range is the FLOOR. Basically, the mark-up
phase can go as high as the market manipulator is capable of taking
it. From my observations, a good mark-up should be able to run about
five to ten times higher than the floor, with six to seven being common.
The market manipulator will do everything in his power to keep you
OUT OF THE STOCK until the share price has been marked up by at least
two-three times, sometimes resorting to "shaking you out" until after
he has accumulated enough shares. Once the mark-up has begun, the
stock chart will show you one or more spikes in the volume -- all at
much higher prices (marked up by the manipulator, of course).


RULE NUMBER FIVE:
THE 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. The first
falsehood you assume is that the stock promoter WANTS you to make a
bundle by investing in his company. So begins a string of lies that
run for as long as your stomach can take it. You will get the first
clue that "you have been had" when the stock stalls at the higher
level. Somehow, it ran out of steam and you are not sure why. Well, it
ran out of steam because the market manipulator stopped running it
up. It's over inflated and he can't convince more people to buy. The
volume dries up while the share price seems to stall. LOOK AT THE
TRADING VOLUME, NOT THE SHARE PRICE! When earlier, there may have been X
amounts of shares trading each day for eight out of 12 trading days
(as in the case of CONROY), now the volume has slipped to X amount
shares (or so) daily. There are some buyers there, enough for the
manipulator to continue dumping his paper, but only so long as he can
enlist one or more individuals/services to bang his drum. He may
continue feeding the promo guys a string of "promises" and" good news
down the road." (Believe me, this HAS happened to me!) But, when the
news finally arrives, the stock price goes THUD! This is entirely
orchestrated


RULE NUMBER SIX:
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.

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 trades.
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. Where as before, he wanted you
IN his market, so he could dump his shares to you at a higher price,
NOW when he sees that this deal IS for real, he wants to pay as little
as possible for those same shares... YOUR shares which he wants you
to part with, as quickly as possible. The market manipulator will
shake you out by DRIVING the price as lows he can. Just as in the
"accumulation" stage, he wants to keep everything as quiet as possible
so he can snap up as many of the shares for himself, he will NOW turn
down, or even turn off, the volume so he can repeat the accumulation
phase. The accumulation phase was TOP SECRET. The noise level was
deadingly silent. As soon as the insiders accumulated all their
shares, they let YOU in on the secret.





RULE NUMBER SEVEN:
CONVERSELY, YOU WILL OFTEN BE THE LAST TO KNOW WHEN THIS DEAL SHOWS SIGNS OF FAILURE.


Twenty-twenty hindsight will often show
you that there was a "little stumble" in the share price, just as the
"assays were delayed" or the" deal didn't go through." Manipulators were
peeling off their paper to START the downslide. And ACCELERATE it.
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 nerves of steel and can afford to wait out the
manipulator, you will more than likely end up selling out at a cheap
price. For the insider, market maker or underwriter is obliged to buy
back all of your paper in order to keep his company alive and maintain
control of it. The less he has to pay for your paper, the lower his
cost will be to commence his stock promotion again... at some future
date. Even if his company has no prospects AT ALL, his "shell" of a
company has some value (only in that others might want to use that
structure so they can run their own stock promotion). So, the
manipulator WILL buy back his paper. He just wants to make sure that he
pays as little for those shares as possible.




RULE NUMBER EIGHT:
THE MARKET MANIPULATOR WILL COMPEL YOU INTO THE STOCK SO THAT YOU DRIVE UP ITS PRICE SHARES.


Placing a Market Order or Pre-Market
Order is an amateur's mistake, A market manipulator (traders included
here) can jack up the share price during your market order and bring
you back a confirmation at some preposterous level. The Market
Manipulator will use the "tape" against you. He will keep buying up
his own paper to keep you reaching for a higher price. He will get in
line ahead of you to buy all the shares at the current price and force
you to pay MORE for those shares. He will tease you and MAKE you
reach for the higher price so you "won't miss out." Miss out on what?
Getting your head chopped off, that's what! One can avoid market
manipulation by not buying during the huge price spikes and abnormal
trading volumes, also known as chasing the stock to a higher price.





RULE NUMBER NINE:
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.


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. See how simple it is and how clear a bell it strikes? Don't
think this formula isn’t tattooed inside the mind of every
manipulator. The market manipulator will play you on the way up and
play you on the way down. If he does it very well, he will make it
look like someone else's fault that you lost money! Promise to fill up
your wallet? You'll rush into the stock. Scare you into losing every
penny you have in that stock? You'll run away screaming with horror!
And vow to NEVER, ever speculate in such stocks again. But many of you
still do.... The manipulator even knows how to bring you back for yet
another play. What actors! No wonder Vancouver is sometimes called
"Hollywood North."




FINAL RULE:
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. Just as I have a duty to ensure that each of
you understand how this game is played, YOU now have that same duty
to guarantee that your fellow speculator understands these rules. Just
as I would be a criminal for not making this data known to you, YOU
would be just as criminal to keep it a secret. There will always be an
unsuspecting, trusting fool whom the rabid dogs will tear to shreds,
but it does NOT have to be this way. IF every subscriber made this essay
broadly known to his friends, acquaintances and family, and they
passed it on to their friends, word of mouth could cause many of these
market manipulators to pause. IF this effort were done strenuously by
many, then perhaps the financial markets could weed out the crooked
manipulators and the promoters could bring us more legitimate plays.
The stock markets are a financing tool. The companies BORROW money
from you, when you invest or speculate in their companies. They want
their share price going higher so they can finance their deal with less
dilution of their shares... if they are good guys. But, how would you
feel about a friend or family member who kept borrowing money from you
and never repaid it? That would be theft, plain and simple. So, a
market manipulator is STEALING your money.

good one.

see original link at

http://timelesswealth.net/articles/deadly_art_of_stock_manipulation.html

rep +
but be kind enough to publish the link when taking something from other sites.

Thanks xhora,

Noted your advice. But unfortunately I didnt have the source link to publish with the post.

Time to remind all about this.Play the game safely from tomorrow onwards.