This is the story of a fantastic stock signal program dubbed the stock robot, which is said to predict market moves of small stocks with stunning accuracy.
Stock market shaking giant Goldman and Sachs who lately got shaken by the market itself was the hotbed of this program. Originally it was used to run a hedge fond, raking in serious money with serious stocks.
For some reason this story ended in a divorce and the inventor of this money monster found himself unemployed with the bored mind of a trading genius seeking a drain for its creative impulse. In order to find some gratification for his heroic efforts there is now a public version of the phenomenal signal system for smaller stocks available.
At this point we take a little breather and move our viewing position perpendicular to enable a more distant analyse of this penny stock wonder, whose story could have been or is in reality completely different. What if these guys do a pump and dump scheme?
The interesting answer is that this would not necessarily mean to not touch this service. Prices of the recommended stocks go still up. They just may come down as fast as they went up. Under the assumption that you are faster in and out than so many others who believe more in the stock tip, this may be the perfect environment for swing trading.
Clearly the initiators have the best advantage, but perhaps there is still enough room for others to participate. And perhaps their system sometimes detects a signal that is for real, or they just happen to be the first users and pushers of otherwise legit stock trading ideas. That is why the prices of these picks don’t always come down eventually.