ramping

  1. 1,383 Posts.
    I have been on this site since virtually the beginning, and it has always been home to the pump-and-dump crew, but in its current incarnation I am finding the professional ramping here quite distasteful. Notable recent examples include LUM, VCR and NRT.

    Once upon a time everyone recommending a stock for fundamental reasons was required to put "contact your broker" or "do your own research" on the bottom of a post. This was irritating but at least was fairer to new traders.

    It is often suggested here that the rampers may be single individuals operating under different aliases. I would not be surprised if it is largely carried out by small brokers.

    The aim of rampers is to transfer shares from strong to weak hands, from the knowledgeable to the gullible. They will ramp on two different occasions

    a) when they want a stock to break out from a consolidation (which is safe enough)

    b) more commonly, when they want to sell but need to squeeze some extra cents out of the market by dumping their now ridiculously overpriced stocks onto the innocent. This is reprehensible and why ramping is illegal.

    The typical methods of rampers are:

    - to say "this stock is going through the roof. We all have to stick together and be in this one for the long haul"

    - to give phoney valuations based on some share of a global market. You think the market cant do the calculations on any given day and factor in the risk? The price TODAY is the right one - or it may be too high if it has been successfully ramped. It is rarely too low.

    For Nemo newbies, to get some idea how to trade safely in the wide blue ocean in the presence of this pack of sharks, take a look at my Post #141841. Forget excitement, think boring.

 
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