PostHeaderIcon Avoiding Stock Scams

It isn’t as rare as you think and if you believe that you won’t ever become a victim then you’re setting yourself up. What am I talking about? I’m talking about scams–down, dirty, no-good, two-timing, money-filtering scams.

It’s what no one would wish to learn the hard way simply because it involves your hard-earned money. No one would actually want to be able to say, "I’ll just charge it to experience." after being scammed because it’s not only your experience that’s debited-It’s also your bank book, your wallet and most of all, your ego.

You’d never ever want to be scammed by anyone because it involves a big part of your money, time and effort whenever you enter into an investment relationship. So what do you do to avoid these types of fraudulent activity? You wise up. Here are some of the tips that you can follow in order to make yourself more scam-free with online stocks.

One of the best ploys that the sharks out there use is by "hyping up" a stock. You might see in a thinly-traded company’s website that their stock is one of the must-buys of the season. It would follow that the message boards, the chat rooms and other newsletters would provide sugar-coated information regarding the value of the stock.

Some of the other routes that these investors might even go to great lengths as to advertising their stocks on the radio, television and some might even be featured in certain television shows. All of these could be potential stepping stones to losing your money to a shrewd con.

No matter what other outside sources say, you should be the one to investigate the stock itself. First of all, consider the source. Remember that the people who are voting for the stock may well be people who are inside the company who are trying to promote the company.

When unsuspecting investors horde in the stocks for them to be able to sell them at a later time, the people who hyped up the stock eventually stop and the price of the stocks eventually goes down, leaving the group of shrewd cons with a lot money and a lot of grieving people in their wake.

Just be sure that you’re not one of the people who fall for this "pump and dump" scheme where they pump up the prices of the stocks and then they dump them on unwitting people who wouldn’t know better. Be sure. Be safe and research the company you’re buying from very well.


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