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story category What if You Trusted Stock Tip Spam?
One guy tries to find out...
(old news - 01:30PM Wednesday Oct 05 2005)
tags: fun · spam
How much money would you actually lose if you listened to those "hot tipsters" that flood your inbox with stock spam? The Spam Stock Tracker answers that question (without actually buying any), and the answer is: plenty. "On May 5th, 2005, I set out to determine just how much money I could lose by trusting SPAM. What if I purchased 1000 shares of stock from EVERY stock tip mentioned in a SPAM email? Could we all really be missing out on a great opportunity?"

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Forums » What if You Trusted Stock Tip Spam?
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Post a:

Alam_GBC
Doh, Now Where Is It

join:2002-11-26
Lawrence, MA

wow

just... wow
iwontoday

join:2005-10-08
New York, NY

Smallcap.tv Credible

Check out this site »www.smallcap.tv it has a very good message board and the companies on it's site are very credible, I have been getting newsletter for a few months and have made a ton on there picks, $40,000 in 2 month's and started with $10,000! They issue press rleases with picks as well as have a good newsletter, all of the companies I have seen are good.

Happy Profits

Tracker09

join:2004-02-05
New Haven, CT

1 edit

wouldn't it be nice

wouldn't it be nice to only get the one for "SNFX.PK"?

222%

Can someone tell me how to adjust my SPAM filter so that only the good stock tips get through?

MacGyver
Aug 18 Goodbye Bell
Premium,ExMod 2003-05
join:2001-10-14
Orleans, ON

Re: wouldn't it be nice

These are just crummy penny stocks. Invest in enough of them and you will eventually find that big winner, but it's almost worse than gambling in Vegas.

cdru
Go Colts
Premium,MVM
join:2003-05-14
Fort Wayne, IN
·Verizon FIOS

Re: wouldn't it be nice

I think Vegas has slightly better odds. I've read the overall payout for slots is 95-98% over the long haul. This was under 50% payout.
--
"What gives them the right to come in and do this?" she said. - Lady complaining that she was getting FIOS in her backyard.
JPCass

join:2001-01-23
Denver, CO

said by MacGyver See Profile :

it's almost worse than gambling in Vegas.
With the emphasis worse than gambling.....that big winner will never be big enough to make up for all the losses along the way.

Unless you're Warren Buffet, just work hard and put the money into either an index fund, or a growth fund with a really good track record.

I find it interesting that recent research has shown that the human brain is so wired for finding patterns, that it has a slight bias towards seeing patterns where there is only randomness. And the brain is also biased towards remembering strategies and events that were successful, and slightly downplaying ones that weren't. This explains why people are likely to perceive that their stock trading strategy is getting them ahead, when it's only running average, or worse; and why they can mis-perceive that their wins aren't counterbalancing their losses.
squison

join:2001-07-07
Decatur, GA
·AT&T Southeast

Missed the point...

I think he missed the point somewhat. Most of those stock 'tips' (which I receive plenty of) are for short-term (ie: day trading) type trades. His site shows if you held onto those stocks for long periods.

That being said, most of those tips still don't work for even what they're attempting to accomplish.

toddbs98

join:2000-07-08
North Little Rock, AR
clubs:

Re: Missed the point...

Whats the big deal? Don't need any tips to lose 8700 dollars.

Jim Gurd
Premium
join:2000-07-08
Plymouth, MI
·Comcast

said by squison See Profile :

That being said, most of those tips still don't work for even what they're attempting to accomplish.
I find that to be the most interesting thing about this. Do the spammers even make money? It seems like the only winners are the stockbrokers who collect the commissions to trade these turkeys.
Kearnstd
Elf Wizard
Premium
join:2002-01-22
Mullica Hill, NJ
spammers make money for every spam they send, its why they depend on bots placed by viri or massive server banks in china.
--
[65 Arcanist]Filan(High Elf) Zone: Broadband Reports

luddite

join:2001-09-09
Allen, TX

said by squison See Profile :

I think he missed the point somewhat. Most of those stock 'tips' (which I receive plenty of) are for short-term (ie: day trading) type trades. His site shows if you held onto those stocks for long periods.

That being said, most of those tips still don't work for even what they're attempting to accomplish.
I agree. It would be interesting to see what the result would be to buy and sell after a set, fairly short, length of time (end of day, next day, something like that). However, there is this tidbit of anecdotal info regarding this approach from the supplied link:
>>>>>>>>>>>>
One thing to note: I thought that I would realize temporary windfalls on all penny stocks, but then see big losses. Instead almost ALL of those stocks I added went up a few cents max, then dropped like flies the next day. So much for short term gains.
>>>>>>>>>>>>

MrE2u

@comcast.net

Sure it does... its called the old PUMP & DUMP. The scammer pumps up the stock price, then dumps it FAST to make a quick buck. Don't even think these guys don't KNOW what they're doing..

AkumalDave
Life's A Beach
Premium,MVM
join:2001-04-20
Minneapolis, MN

Bears out my suspicions

I'd always figured that the senders of the "pump & dump" scams were already positioned to profit from any miniscule bump in the share price or increase in volume of sales and that everyone else was pretty much guaranteed to lose.

Kudos to Joshua for doing that research! Fascinating study!

Dave
--
"...enjoy every sandwich..." Warren Zevon 1947-2003

aardvark9024

@comcast.net

how spammers get paid

they charge cash up front to send , so it is irrelevant the success of the message.

Jim Gurd
Premium
join:2000-07-08
Plymouth, MI
·Comcast

Re: how spammers get paid

said by aardvark9024 :

they charge cash up front to send , so it is irrelevant the success of the message.
I guess I was unclear about who I meant. I was referring to the person or group who originated the message. I assumed (maybe incorrectly) that they did their own spamming and didn't think about them hiring a third party to do it for them.

To clarify, does the originator of the message actually make any money? I don't see how they can since the price barely budges even after a spam run.
gatzdon

join:2002-10-25
Lake Zurich, IL

??

It would make more sense if he listed info like the target price in the e-mail, the assumed price per stock and commission paid separately. Have a column for the peak value since the stock was bought.
--
$100 placed at 7 percent interest compounded quarterlyfor 200 years will increase to more than $100,000,000 --by which time it will be worth nothing.- Lazarus Long

FiL
Premium
join:2005-08-16
Silver Spring, MD

Can

someone clue me in on how a email spammer gets a job???
seems very dangerous in my op. to give out money to people spamming the servers since even the governments placed crosshairs on spam...are their actual by the book companies giving freelance work out or something? how would u pay taxes on spam-generated income? wouldnt it be falsification if the company work to state its employee has a diff job title other then proffesional email spam sender? lol its crazy how much money seems to be moving around in this game...
jester121

join:2003-08-09
Lake Zurich, IL
·ViaTalk

Re: Can

Company classification - marketing.

Employee classification - marketing consultant.

Couldn't be simpler.

The hairy part might come up when the SEC finds out who's doing the pumping. They tend to be pretty resourceful and tenacious when it comes to hunting people down. They're also pretty good at putting the screws to the ones they catch (Michael Milken aside).

banananananana

@dynamic.cov

The guy with the site is a spammer

He's breaking the terms of agreement for Google AdSense program by breaking the TOS. The angle for this website is to make money by sending out press releases about this site, then inducing fraudulent clicks on Google's AdSense (and thereby stealing money from advertisers).

Apart from that he's monetizing the site through an affiliate agreement with visitorville web analytics (which is a cool application, gets my thumbs up), and is also trying to sell his CMS system for a thousand bucks (with so many open source CMSs, why bother, though).

akseawolf

join:2002-04-01
Sunnyvale, CA

do the opposite thing

I've always wondered how much money I can make by doing the exact opposite of what spammers say to invest in.

IE, if a spammer says to buy stock XYZ, I'd tell my stock broker to short sell XYZ. Which is probably what the spammer himself is doing.

Of course I don't have a stock broker, so its a moot point for me.

Fobulous
Premium
join:2002-08-14
Missouri City, TX

Re: do the opposite thing

Shorting is an option how about just throw that $3Gs in Vegas, i promise you'll have fun doing so too
--
I am certain there is too much certainy in the world. - Michael Crichton
iwontoday

join:2005-10-08
New York, NY

Smallcap.TV Credible

Check out this site www.smallcap.tv it has a very good message board and the companies on it's site are very credible, I have been getting newsletter for a few months and have made a ton on there picks, over $40,000, I started with $10,000, if it is a CREDIBLE site that uses opt-in and stock pick press releases i.e.

»news.google.com/news?hl=en&q=sma···N&tab=wn

then I watch the picks, spam is risky and usually doesn't come close to the volume this site creates in a stock, which is important, u wanna be able to get out at a higher price, so liquidity is key.

Happy Profits!!
Forums » What if You Trusted Stock Tip Spam?


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