Hello my fellow traders. In this video I want to discuss something that might be relatively basic for some of you veteran traders but definitely something that new traders and intermediate traders have to know about. And that is the concept of a pump and dump. Okay, one of the reasons we profit so much off of these penny stocks is because of the concept of pumping dumps, okay. And pumping dumps, you know, though it's, it's exactly what it sounds like. What happens in this case, is a stock and the stock so let's take this stock x GTI.
What happens is in some fashion, okay, don't worry about the details in some certain fashion, it gets pumped up, like it sees like you see here. I think this happened in a single day where it went from 217 to $4 and 97 cents, okay, I'm not even reaching the peak anywhere from like $2 to $5. Okay, in a single They that is a huge pump. And then what happened? You can even see the volume. The volume was something ridiculous like 15 million shares, okay, in a single day of this stock when when the average was about 200,000 about shares traded, okay, in one day it became 15 million, okay.
So what happens is through some CERN fashion, okay, the stock gets pumped, and a huge amount of volume goes into it and the stock price shoots up. And then what happens is it gets immediately dumped, okay? Everyone is selling their shares, the shareholders, maybe the board, maybe management, maybe the penny stock promoters or the people who hyped it up and pumped it up in the first place. Either ways, it gets dumped, and this is the Pat pattern or the chart pattern that gets created as a result, okay. You get this huge mountain like effects and locks whenever You see a pump and dump. Okay?
So basically you're gonna you can see my video on how to track pumping dumps, I teach you how exactly you can go about locating these pumps and getting into, you know, the stock right here and be prepared for to jump up so that you can quickly make your money. But you have to understand why I always stress the point of collecting your gains, locking in your profits and just selling the stock. And that is because of the concept of that is because of the concept of these pumping dumps. Okay. What happens is, as you know, the way that it is pumped is back in the day back in the 1990s and pi 2000. and possibly even today, no, it would be naive to say that they're not around anymore. There was a concept of boiler rooms.
And you know, if you've seen The Wolf of Wall Street, that's what you know, early on in the movie. That's kind of what was going on. It was a boy that activity there was the salesman who will call up people and entice them, persuade them influence them almost threaten them in some fashions. If you saw the movie, you know what I'm talking about, into buying these penny stocks, okay at a certain on a certain day they pump it up they create a lot of hype and marketing for the stock. Nowadays, it happens through newsletters, and websites and email and social media. But in general, the whole idea is to get people excited about a certain stock on a certain day and that's exactly what happened here on March 4, okay.
On March fourth, you can see that the stock opened up on March 5, I guess you can see the stock opened up at $2 and 17 cents, and then 15 million shares were traded that day. Okay, the average was 200,000. And on that day, 15 million shares were traded. Okay, and the price shot up $3 a share in a single day. That's more than 100 that's 150% If you got in at $2 17 cents and you sold around five, you know, again, it's almost impossible to be that perfect and I wouldn't even advise that I would advise as soon as you get that $1 a share $1 50 cents a share, sell it you still make boatloads of money. Okay?
You know, you have to know that these pumping dumps exists because I don't want you to ever think about investing in these companies. Okay, I actually had a discussion with someone who, who trades penny stocks and again, I recommended to my site and I hope they watch the videos and, and learn because they got high, they got hyped up in the product and, and, you know, the whole pump, they don't then they're in the pump right now I'm telling them to sell. They don't understand the concept of the dump. And you know, in this case, the dump wasn't so bad. Okay, the stock is still holding up, but in a lot of cases, the dump causes the price to go almost to zero. And eventually with this company, I think that's going to happen.
Okay, I haven't really looked into, you know, whether or not this was exactly pumped and dumped to that extent. But this is the chart pattern that you'll see, this is how we make money. You know, I help you guys find the momentum before this huge peak so that you're ready, you can buy the shares, you can see the action, follow my double catalyst rule and my VIP secrets and strategies, and you'll be able to, you know, lock in these profits and you know, make your gains make money as a day trader, and then, you know, it's not bad in a single day making double your money, making 100% of your money if you have even, you know, a few thousand dollars in your account, you just made another couple of thousand dollars in a single day. You know, and this type of thing happens almost on a daily basis.
And now, you know, the date is March 26 2014. It's a bull market. This happens every day, you know, but even when it doesn't, I can help you identify When it happens and make sure you're prepared. So, you know, definitely go check out the VIP I hope you remember, you know, sign up for it. I'll teach you my strategies. I'm going to teach you how to track these pumping dumps, and how to profit and how to be a consistent, profitable and self sustainable trader.
You know, my goal is also that within a few months after you watch my videos and understand the lessons, you'll be able to identify these trends and these pumping dumps and, you know, trade independently, you'll be you'll have all the tools, all the resources, all the knowledge and all the experience that you need to be a profitable trader. So, you know, I guess I'll see you guys inside the VIP member section.