DAGMA Publishes Five Stock Market Scams To Avoid
Daggett Market Analysis specializes in dynamic asset allocation with Investment advice from lawyer and financial planner Paul Daggett, who utilizes market timing strategies to give weekly advice on the stock market and other investment ventures. Paul publishes the DAGMA newsletter weekly from Minneapolis, MN.
- Minneapolis-St. Paul, MN-WI (1888PressRelease) April 12, 2011 - The latest edition of DAGMA, the stock market newsletter, reveals the five most common scams used by investment newsletters.
In the Pump and Dump scam, the scammer buys a large quantity of a stock, increasing the demand and raising the price. He then recommends that his readers buy the stock, further increasing the demand and further raising the price. He then dumps all his stock, leaving his readers to suffer as the price collapses.
In the Selective and Deceptive Performance Reporting scam, the scammer either lies about stocks he's picking, or presents information selectively and misleadingly, cherry picking only what will create the impression he desires.
In the Getting Rich with Penny Stocks scam, the scammer misleads readers about the extreme volatility and riskiness of penny stocks.
In the Tout Sheets scam, the scammer oversells a stock by presenting it as a rising company that one needs to jump on the bandwagon to invest in with no delay.
In the Exaggerated Profits scam, the scammer reports the profits one could have made by buying and then selling his recommended stocks, but he assumes that the stocks are sold at their highest point, when in fact the highest point can only be known in retrospect.
Learn more about these five scams in the latest edition of DAGMA, the stock market newsletter that not only informs readers about stock market scams but explains the whole process of trading stocks so that readers can make informed investment decisions.