I have to admit, I have been the victim of ‘Pump and Dump Stocks’, probably twice. One of the companies was a new shoe company that sounded very promising. So I got in, not hoping to get rich, but to at least make a nice profit. And if it hadn’t been for poor timing I may have profited but I got caught holding an empty shoe box. During the summer that I owned that stock I took a vacation. At the time I had no way to keep track of the stock market. Before I left the stock was somewhere above the $2.00 price range but a week later when I returned home it had fallen to about 20 cents a share. It eventually became worthless and I really didn’t know what to do with it. Finally a couple years later I did some research while filing my taxes and found out how to sell my worthless stock and claim it on my taxes. I basically recovered my losses in the form of a tax credit. Now it appears I will be doing the same thing this year with my worthless shares of stock for GWBU. The company know as Great Wall Builder, has pulled off a 611 Million dollar scam. And it sounds like the CEO and brains of the scam is probably sitting somewhere enjoying the rewards of his scam along with profits from a few other similar scams. At least I haven’t lost quite as much this time around and I have learned my lesson on buying penny stocks. There are some good ones out there with potential to earn some nice profits but for a few pennies on the dollar, that’s a hard and risky way to earn a living. And it really sucks when you pick wrong. It’s all a matter of timing and requires spending a lot of time watching the market, what I consider day trading. I did that for a while and although I did profit well from most of my ventures I find it too hard on my nerves. Now I prefer to just invest in well know companies when they are on the downside and preferably companies that also pay a decent dividend. Here is a link to a very good article on GWBU that explains what took place with that scam. Hopefully someone will learn from reading this on what to avoid in penny stock investing. A 611 million dollar scheme
But this article also has me interested in doing some in depth research on the new cannabis companies that so many people are convinced will be like the next Microsoft, ready to make them millionaires. Right! I can’t help but think that there will be at least a few of these start ups looking to grab millions of investor dollars before the go up in smoke!