I called out ITUS yesterday for being a pump and dump and it dropped 13 percent today. This makes it clear that ITUS was pump and dump (I had a bit of share on it, so I did make quite bit of money). I also had veritone on my watch because it has been rising at suspicious rate for the past month. It was especially more suspicious due to the fact that it’s a brand new company. However, I wasn’t sure, so I jumped in on this stock at $57 dollars a share (7 shares total, didn’t really go big, because this one was a pretty risky gamble.) and rode it until it dropped big today.
I been riding this stock since last week and knew it was going to drop soon or later. The rate was similar to pump that you would see on penny stocks. I was hoping it would have dropped tomorrow, but When 1045 hit, the stock dropped all the way down, a little over 30%. I took a little loss on this one and ran with it before it got worse. I got a little too greedy and didn’t dump it earlier. When the dump starts (anytime you see anything more than 5% drop), keep your eyes on it to make sure it doesn’t continue dropping. If it’s more than 10% decline, drop it for sure and run, cause it’s bound to keep dropping due to fear in the market.
I personally should have dropped out a long time ago on veritone. My rule of the thumb is when you make anything more than 20% of what you put in a volatile stocks like this in a single day, you should take it and never look back. 20% may seem small, but it adds up when you put in a lot of money. Also, even more so when you do this several times a week. (I know someone who gets in on pump and dump 2-3 times a week). If you are really good at predicting these pump and dump stocks, then you can easily go for 200%-300% raise, but I say it’s risky.
As long as you are making profits on these stocks, take it and run. Don’t be too greedy, but don’t chicken out too fast either. I personally would invest most of my money in stable stocks like visa, mastercard, brk.a/b, and voo (with good analyst rating) for the long term to seek safe return. But you know what? It doesn’t hurt to put in little money for pump and dump stocks like these once in a while to remind you that gambling on stocks like this is risky, cause it teaches you a lesson on patience, greed, and fear.