Sounds familiar Techniques of Market Manipulation
Market manipulation techniques involve spreading false information via online channels that are frequently visited by investors. The barrage of bad information on message boards, when combined with market signals that seem legitimate on the surface, can encourage traders to execute a given trade.
The two major techniques of market manipulation are:
1. Pump and Dump
Pump and dump is a manipulation technique that is used frequently in order to inflate the price of security artificially. The manipulator then sells out, and followers are left with an overvalued security. This works on stocks with micro-market capitalization.
2. Poop and Scoop
The poop and scoop technique is not as frequently used as the pump and dump. Here, the price of the stock is artificially deflated. Once it happens, the manipulator buys the undervalued shares, thus making a profit.