All language subtitles for 6. Traders Behaving Badly

Well, breakouts and retracement are actually very normal, as we as we've mentioned, and your normal

continuation of a trend or just a temporary change, that's all normal.

But oh my gosh, some people behave badly and try to manipulate, manipulate situations and manipulate

the system and really try to manipulate us as honest people, manipulate others and how they do this.

One way that you can behave badly as a trader is the make up their own news, or they spread rumors

or they do some dastardly recommendations or or they talk to some unfair trade practices like insider

trading, whatever it might be.

They're trying to do something that's not ethical, to try to influence the price and try to get others

to kind of be tricked into that.

So just be aware of, you know, sometimes some traders can go can can behave badly.

Now, the governments are out there with regulations on things to help protect us, particularly things

like insider trading.

If you're looking at stocks or or things that might be, you know, manipulation of currency or whatever,

you know, these types of things they have on there.

So let's let's say, for example, on the stock market world of a CEO, you know, makes a statement

that will try to raise the company's stock.

That is a false statement.

You know, then that there's laws against that and that person can be punished for it.

There are drug companies, CEO, for example, and they say we have the cure for cancer.

Well, somebody says they got the cure for cancer.

The stock is going to go skyrocketing.

And they said, oh, I guess I didn't mean it, you know, the size of the fall.

But meanwhile, the CEO and others who he's friends with could raise that stock up, sell it, get out,

and then let it fall back down because they lied and manipulated the market behaving badly and is illegal

or the most false things to try to raise the stock price automatically or not automatically artificially

and then try to sell for a quick profit.

And that can be just regular traders putting out rumors or theories or ideas that they really have no

basis of fact on.

They're just trying to, you know, manipulate the prices, what they're doing.

There's a term for that where it's called pump and dump the graphics.

Nice graphic.

That kind of explains how you look at our price and time there, the horizontal vertical axis.

And so let's say if you're back there at the you know, the 10 cent level.

Right.

And you want to pump up that that price.

Right.

So there usually can talk about things like, you know, the next hot tip or or next big thing or whatever.

You might see people posting blog posts or things on forums or saying things.

There's definitely a break coming.

It's going to go up high.

All you got to get in before it goes up too high and they'll promote another former blog or YouTube

or wherever they can promote it in social media.

And they're going to promote this.

This is all great.

And they have no basis of fact.

They're trying to basically trick trying to trick you to get people to buy and raise that price.

You see a lot of it.

By the way, if you later on, if you decide you start applying this, you want to trade very inexpensive

stocks, very, very expensive stocks like term penny stocks or a lot of cryptocurrency in the old coin

world, not so much Bitcoin, but sort of all coins that are newer, less understood, maybe Laub things

that are lower priced as the idea is that can be manipulated easier.

There's less traders in those areas and the price moves can be more dramatic because, you know, going

from ten cents to fifteen cents is a big move, you know, versus trading, let's say, a Securitas

train for hundreds of thousands of dollars.

And we always consider the source when you start seeing these things, all hot tip or whatever, but

the idea is that they take something that's, let's say now today trading for ten cents or point one.

Oh, and they're going to keep promoting, promoting, promoting the try to drive that up to, let's

say, point nine.

That's the pump part.

But they have no basis for fact.

Right.

And then that they do is they dump it, they sell it, they get out right.

They get out at point nine.

And then maybe after falling a little bit, they say, oh, it's maybe not that great a thing, it's

not so good.

And then it goes down in price.

Right.

But meanwhile, they've made their profit.

So that's pumping and dumping.

Just be aware of, especially on things that are more narrowly traded like penny stocks and alternate

coins and things like cryptocurrency.

But it can occur basically anywhere.