I’ve personally not
shorted a stock at this point, but I do sometimes buy PUTs or enter into
bearish option strategies (which I guess, technically, is similar to shorting). I do, however, believe that retail-pumpers
cost retail-longs a lot more than retail-bashers ever will.
How to recognize
Stock Pumpers on Message boards, newsgroups and in chat rooms A counter
discussion to the “Paid Basher’s Manual” found on http://www.novakcapital.com/bashers.htm
LEARNING is a process and
an evolution. Learning is not all fluff. Learning is a process of awareness and
unfolding development; one must be willing to work at it though.
A year ago when I asked
broker friends of mine if the internet message boards will have any affect on a
stock. They ALL laughed at me and said those idiots having an affect on a
A truth: IT IS EASIER TO
SCARE PEOPLE INTO SELLING THAN IT IS TO INFORM PEOPLE INTO BUYING A STOCK. But once they’ve committed their money to a
stock, it is much easier to keep them holding on to a losing position than it
is to scare them away. Its human nature
to hate to lose, and if you sell a stock at a loss, you are admitting that you
made a mistake when you bought it..
Well I asked those same
friends this last week, and the answer from all YES! message boards and
""shorts & longs" (some) can manipulate with lies, and
Now think about that, you
have elderly that invest and find their way to the message boards only to see
false posts about “the next big move”, claims of insider information, or justification
for a future by out. Or you have a
Yuppie with a kid to put in college going to these message boards only to see
posts by 15-20 (probably 5 or 6 under alias) "pack of pumpers", or
even 1 main “shepherd” leading his flock of “sheep”… all are posting the same
false information about the news that is about to be released. What do you think they will do ?
It's easier to sit on (or
hold) a stock than it is to admit that one has made a mistake when they
purchased it in the first place – especially at a loss! THAT'S WHO THE PACK OF PUMPERS
PRAY ON AND DEPEND ON. They want the stock to go up, but don’t believe that it
can under its own power! Understand? And they have just as much money and risk
as you. But they have the edge of fear, lies, falsehoods to post and to keep
others holding their positions which they hope will minimize the drop in the
Lesson 1: Remember, PUMPERS NEVER PUMP A GOOD
STOCK. Watch the board for stocks with strong potential. They never have any pumpers.
Pumpers only go after stocks that are going downwards or have excellent
potential to go down. Pumpers get left behind, so they want to bring the price up.
Lesson 2: PUMPERS BRING UP OLD NEWS THAT YOU
HAVE HEARD MANY TIMES. All companies always have a few bits of good and bad
news. The pumper will post the good news over and over again. The stupid pumper
will try to make the old news a bit fresher to try to fool you.
Lesson 3: PUMPERS POST MANY TIMES A DAY IF
THE STOCK PRICE GOES UP, BUT MAY GO SILENT ON DAYS WHEN THE PRICE PULLS BACK. Pumpers
can answer every question except those that involve facts that are contrary to
their position. There is no negative comment they won't bash. They try to
control the board. When all else fails pumpers resort to personal attacks
against those who don’t support a stock.
Lesson 4: PUMPERS WILL LIE TO YOUR FACE.
Never trust a pumper. The truth on all companies is that mistakes are made and
losses happen, and things go right and profits happen. The pumper will try to
make you believe that the company they are pumping can only make minor errors...
THIS IS NOT TRUE. THE PUMPERS LIE TO YOU. Companies with falling stock prices
are frequently making more than minor errors, this is the nature of the beast.
Lesson 5: The pumpers know YOU CAN'T VERIFY
THEIR STATEMENTS. That's why they make the statements they do.
Lesson 6: The pumpers PLAY ON YOUR LACK OF
KNOWLEDGE. They can lie about information and you couldn't know the difference
(unless you have done your assessment of the company and know the truth and
Lesson 7: Pumpers play on your patience. YOU
have held a microcap stock for a while. You knew it will be a madcap stock
someday, but the PUMPER CAN GET TO YOU BECAUSE YOUR HUMAN NATURE WANTS TO KEEP
YOU FROM ADMITTING THAT YOU ARE HOLDING A LOSING POSITION. That's when the pumper
is best. You are proud. You have forgotten the commitment was to keep your
losses small and your profit big. The pumper is bothersome, so you hold it
through bad day after bad day. Some others buy, and the stock goes up a little
bit. Then you feel justified for holding and return to let everyone know how glad
you are for holding. Then you turn into a pumper as well. THE PUMPER HAS WON,
AND GAINED A NEW PARTNER TOO!
Lesson 8: HOLD THE PRICE UP. That is the pumper’s
job. The truth is not important. Lies are the norm. Post continuously on the
board every day. They are trying to hit the newbies visiting the board. They
are trying to wear out the critical discussions on the board. They do whatever
it takes to wear the shorts out.
Lesson 9: PUMPERS WILL TRY TO CREATE DOUBT
AND GET YOU TO RESEARCH ITEMS THAT THEY KNOW WILL LEAD TO THE CREATION OF DOUBT
IN YOU AND IN OTHER STOCKHOLDERS. A typical trick of an advanced pumper is to
propose that there is a potential news release coming, but because
"we" don't have the facts on a particular subject we don’t know the unshared
details. The pumper dares someone in the group to find out the answer to the
question. The pumper already knows the answer; the pumper already knows what
will be found. The power of this tactic is that the pumper is now in control of
the actions of the stockholders; the pumper has you, the stockholder doing
HIS/HER due diligence and when you, the stockholder come back to the group with
a questionable finding then the pumper gains credibility. What to do???
Solution??? Well, I think it's important to find answers but on your own terms.
I actually pick up the phone and call the company and talk to the investor
relations person or the CEO until I get a satisfactory answer. The problem here
is that the advanced pumper has you doing his bidding and his work; you have
essentially joined his ranks. So, develop your own little Due Diligence package
and answer questions by placing the information into the package and referring
all new investors to read the answers to questions raised in the Investor
Information package but DON'T GET INTO A CONVERSATION WITH THE PUMPER REGARDING
THE TOPIC. THAT IS WHERE YOU LOSE. DON'T CONVERSE WITH THE PUMPER; ANSWER
INDIRECTLY; DON'T USE THE PUMPER’S NAME; DON'T GET INTO A PERSONALITY CONTEST.
A PUMPER’S HANDBOOK: know the enemy who wishes gain at
your expense! Do not underestimate a pumpers influence on a stock. The Pro's
are good at what they do and what they do is profit from your losses. Below is
their "hand-book" so to speak. Learn from it or donate your money to
those who make an organized plan to profit at your expense!
PUMPERS DO THE
1. Be anonymous
2. Use 10% fact. 90% suggestion. The facts will lend credibility to your
3. Let others help you learn about the stock. Build rapport and a support base
before initiating your pumping routine.
4. Enter w/ humor and reply to all who reply to you.
5. Use multiple ISP's, handles and aliases.
6. Use two (2) or more aliases to simulate a discussion.
7. Do not start with an all out pump of the stock. Build to it.
8. Identify your foes (bashers) and the boards "guru" Use them to
your advantage. Lead them do not follow their lead. Ideally, you will become the board’s guru.
9. Only pump until the tide/momentum turns. Let doubt carry it the rest of the
10. Give the appearance of being open minded.
11. Be bold in your statements. People follow strength.
12. Write headlines in with catchy statements.
13. Pour it on as your position gains momentum. Not your personality.
14. Don't worry about being labeled a "pumper". Newbies won't know
your history, and you are supporting their choice to purchase the stock in the
15. When identified put up a brief fight, then back off. Return later unless
your foe is a weak in reasoning powers.
16. Your goal is to limit the momentum of the drop. Not to make the company blast
off; be subtle and consistent.
17. Kill the fears of losses, promote the company and the stock.
18. Use questions to create critical thinking. Statements to reinforce facts.
THAT CAN BE PROVEN, NAME CALLING AND PROFANITY AGAINST SHORTS IS ENCOURAGED.
20. Tell people that you have called the company. They'll take your word for
claims made. If they do call to verify you can always find something that is missing
from their response.
21. Encourage people to take the companies word for everything. Encourage them
to call the company. They won't out of laziness.
22. If the companies history/PR's are positive constantly point to that.
Compile a list of this data prior to beginning your efforts.
23. If the price falls blame it on temporary outside influences, temporary mass
reaction, the market, etc. Anything but the stock / company itself.
24. If other posters share your thoughts, play on that and share theirs too.
25. Always cite high volume, even when it's not.
26. Three or four aliases can dominate a board.
27. Bait the bashers with personal attacks putting their focus/efforts on you
and not the stock or facts. Divert their attention from facts. Show them the
facts from a "different angle."
28. Bash other stocks that would-be investors can turn to instead of the one
30. Do not fall for challenges on the "values" of what you are doing,
it's a game and you are playing it with your own rules.
Will join the message board early and actually "bash" the stock with negatives;
this pumper is very intelligent, has the facts of the company, actually helps shorts
with Due Diligence and generally gets the confidence of the bears. Then, when the
stock hits their price, the tone will change and they will start asking longs
to check into this and check into that. The seeds of doubt are being planted.
This pumper will then start using all the tactics listed on this page to create
seeds of doubt. ALWAYS LOOK AT THE PROFILE OF A PERSON YOU SUSPECT. ASK WHAT
STOCKS THEY'VE "SUPPORTED" IN THE PAST AND CHECK OUT THE MESSAGE
BOARD. An honest person will have a positive track record that can be followed.
I strongly believe that a contrary view is needed but this person is out to profit
at your expense\ and does it by deception and creates hope after gaining
confidence! BEWARE, this is the most clever pumper and the hardest to spot.
Grade A Pumper:
Posts lots of old news, responds to all negative posts with a positive side.
Never responds to being called a pumper, never posts on another board. Can
spend up to hours each week pumping a stock.
Grade B Pumper:
Very good way with words, always claims to be your "friend" taking
the negative poster into confidence, never posts on another board; spends hours
Grade C Pumper:
Spends less time than the others but is somewhat effective and gets a C grade
due to getting excited when pumper’s rules say not to get excited; spends
several hours each week.
Grade D Pumper:
Needs to learn the basics about being convincing when making a positive
statement. Spends a good amount of time working the stock.
Grade D Pumper: A complete idiot, most readers are not
convinced he knows anything about stocks in general. The type that says a stock
"rocks", but gives no rationale, shows up every so often but no
WHY PUMP?: MONEY (the usual reason), SPORT,
ENTERTAINMENT. Some pumpers are compelled to pump because they simply need to
justify their investment choice to themselves, so they must do it. It's a sad
fact but never the less, a fact. It's life so you must learn how to deal with
it or become a victim!
LEARN ABOUT HOW STOCK PUMPERS
WORK: Very few
pumpers are paid… just like there are very few bashers who are paid. There are just too many people out there doing
the work for free for a fund to justify the extra expense.
NEVER ENGAGE A
if you do so then YOU BECOME THE PUMPER'S AID!
Read the news, do your own homework and make your own decisions. Get real time
quotes and follow the stock for a couple of weeks. Due Diligence is key here.
Know that there will be a time when the stock runs up which will be followed by
the Bashers and those that missed the boat. The pumpers will praise the stock
by saying such things as "it’s a minor setback" and "the SEC is
lying" and deceiving. There goal is to encourage longs to hold and
potential new investors to buy, by falsely supporting the company. Take the
time to confirm your Due Diligence, ,trust your own judgment and believe in
yourself, pick your point of return or loss and live with it. Don't listen to pumpers
or bashers and live by the rules you have created.