I noticed many of my friends and family get emails about some supposed great stock to buy because it will soon rise to a great value due to some exclusive ability they have that give them a monopoly in an area, whether technology or mining mineral resources.

I can’t name stock names here since some crooks do have millions already and don’t like it when you expose their money making scams that are bringing them all their money. But I should warn people that there are many cheap stocks out there that are mere scams, some of them have no reason to exist except to be used in a scam.

So to the extent that you would consider “gambling” a sin, you should also consider such stock ‘gambling’ a sin also.  There are some stock investments that might not be considered pure gambling, and more of a good potential investment with some possible risks.  It is up to the individual Christian to decide in his own heart in front of God in all honesty if he thinks a stock is more of a gamble than a possible investment.

Now in regards to penny stock, pink sheet stock recommendation scams:

The only people getting rich are the people perpetuating the scam and sending out emails/newsletter with false information or based on knowingly false information.

Many people have made a lot of money running such stock scams. It is very simple, let me explain it to you.

You find a small stock that can be easily ‘manipulated’, this means that it should usually be a “Penny” Stock or “Pink sheets” stock etc where the price per share is CHEAP, just a couple dollars or even literally pennies.

You simply just BUY as many shares of that stock as you can….then immediately after you ALREADY bought, you go around spamming MILLIONS of people about a SECRET great NEW stock you discovered. You fill their greedy minds with dreams of Big Easy money, and they start buying the same stock you already bought, the more people you have control over the more money you will make.

HOW? As soon as all those people you spammed start buying the stock for that company you spammed them about, the STOCK PRICE will RISE QUICK. It can easily go double or triple or even ten or maybe a HUNDRED times as high as you bought it. You then simply have to SELL your shares and make your nice HUGE PROFIT.  You have to sell not too late so that people don’t realize the company is not worth anything and start trying to get rid of their shares also.

You then write emails BRAGGING about the statistics of how so many stocks went up right after you told them the secret club our ‘members’ etc. (an example:”Readers who jumped on REPLACETHISWITHANYSTOCKrecommendationNewsletter’sName most recent hot performer, ReplaceWithSomPennyStock (OTCBB:…), saw their investments soar 998% in just over a month. “) Basically that stock fluctuated in 52 weeks from just a couple “cents” to $11/share (a real un-named example), this kind of fluctuation is very indicative of stocks used for scams, they didn’t tell you the price, they mention 998% increase so you can’t easily track/compare, the value of the stocks go up quick and then drop like a rock again after the manipulation is done and the massive sell-offs begin. In fact price of the example stock did get manipulated from UNDER $1 to $11 in just one month and some people made OVER 10X their money off the people who bought at higher prices after stock was manipulated.

Yes if you’re very smart, you can get some people to even pay you to scam them by charging them MEMBERSHIP fees for them to get your worthless spam emails about the next new greatest secret stock discovery that’s set to be a ‘monopoly’ on something…

Apparently there is nothing illegal at all about this practice, some might see it as ‘unethical’ or something but there’s really no way a law could be made against it since it based on a pivotal principle of the stock market, the idea of ‘perceived’ value or ‘prospecting’. Stocks go up and down in value all the time based on what someone might say about the future of that stock. Sometimes the owners of these companies are “in” on the scam, in other words they will release Bogus News reports (and fake stock Newsletters under other names praising their stock’s future potential) and do other things to artificially make their stocks rise, they then sell their stocks at these high inflated prices and make a nice profit.
But when the “Owners/Officials” of the targeted Stock “are in the know” and collaborate or are the sole drivers behind these fake StockNewsletter appraisals/recommendations, then there is a law against that when these stock owners are involved and some of the little guys who try to play such games do get prosecuted, just one example of some stocks that are solely “created” to be scams to “Pump and Dump”:
http://www.stockrants.com/forum/traders-lounge/3842-ihub-owner-admits-p-d-fraud.html

ONE VERY legal way to make money is to constantly monitor for any penny stock that comes on the market if it is cheap enough, and just wait for the scammers to try and manipulate it, then when the price jumps quickly to a decent level, sell immediately because its likely the effect of the “Pump” brainwashing tons of others into buying…then you sell and make money. This way you can ‘ride’ the pump and dump waves created by others.

Almost all pennystock emails are part of such “Pump and Dump” scam tactics. Some are even solely ‘created’ by the owners only for this purpose.

The observant will realize these types of stock market scams are very similar to various MLM marketing pyramid ponzi scheme scams. It is just harder to keep a stock market scam going for long with the same stock, but people behind pyramid scams also start new ones quite often when too many people realize its a scam and no longer bite/buy their hook. At least in a pyramid scheme scam its still easier to trick someone else into the scheme and possibly make your own money back. Whereas with a pump and dump penny stock scam its much harder for you to drive up the value of the stock again, so you can sell it and recover your money. Unless you can start your own “propaganda” machine to rile up others into a frenzy like they do at MLM pep rallies. I’ll write separate articles about real MLMs versus scams. Real ones should not ‘require’ any mandatory monetary investment from you. Scams hide the fact that all the money is made from people ‘buying into’ the supposed opportunity with membership fees/etc and not from the actual commissions from services offered or goods sold.

The Billionaire’s and Trillionaires play their own SCAMS similar to this, but with their money they can “manipulate” bigger stocks.  There’s plenty millionaires involved in both ponzi pyramid MLM scams and stock market scams. Another favorite (but perfectly LEGAL) trick of theirs is called “Short-Selling” which I may write about later. With short-selling you make money by betting that a stock will fall, and some ‘people’ have the power to ‘help’ some stocks to ‘fall’…I could go into some of these methods also…but maybe is smarter not to expose too much.

There are many LEVELS to such STOCK scams, the reality is that the only real winners on the stock market are the inside traders or those with the insight to follow the path of these inside traders, this is ‘supposed’ to be illegal but in reality only the little guys who are not part of the big-guys club get slapped if they try to play out of their league at the big-guys table so to speak.

Any safe legitimate stocks? The BIGGER the stock, the harder it is to manipulate it (though current events have proved that none are really too big to be manipulated, especially with cooperation from those ‘inside’), that’s why investing in specific MUTUAL FUNDS which are an aggregation of various BIG STOCKS/companies are a safer long term investment. The problem is that with BIG stocks, the PRICE per share is high so you have to be RICH before you can get any RICHER through them.

Then there’s also quick mass computerized buys/sells that make money creating small daily fluctuations in stock values, and ‘day-trading’ has made some people lots of money, more to those doing the manipulation but also some to those smart enough to quickly ‘ride’ the manipulations.

So….be happy you got your basic life necessities and put your money in your kids socks this Christmas not in stocks. -ECCLESIASTES 12