![]() "NAEI's mission is to be a leader in the deployment of solutions and the implementation of projects." Really? Gee, you would have thought that NAEI would have done something.anything, if they had any sort of mission. Pereira freely throws around meaningless jargon in hopes of conning the unsophisticated. "NAEI has technicals that show promise as well, with a float of just over 1M." What "technicals"? The company barely traded before Wednesday. What seriousness? There has never been a press release announcing anything and the company has no operation whatsoever. "A company that shows this level of seriousness.". This is an entirely fabricated statement. This pump piece makes several statements that cannot be supported, for example, ".about to engage in funding to meet the growing demand of renewable energies in Asian markets. On February 1st, Pro Trader Elite disseminated several hype emails, like the one on the right, over the course of just a few minutes. We will start out by stating the fact that Rafael Pereira (if that is his real name), the publisher of Pro Trader Elite, set out to deliberately defraud the public with his promotion of NAEI. ![]() We just saw this scenario played out to perfection last week with Pro Trader Elite's pump of New Asia Energy, Inc. It's a dangerous game that has played out to great detriment several times over the past years. And if the shorted stock has a low float, the result can be disastrous, as the unavailability of stock to cover the short amid margin calls can create a huge jump in the share price. Well the same logic can be applied to stocks going south. There will be hills and valleys in any chart, even if the general trend for the stock is upwards. There's an old adage that no stock, no matter how legitimate, goes up in a straight line. It's all in what happens on ticker's path to zero. If the stock is going to zero, how can the risk be unlimited? "Well wait a second", one might protest, citing our acknowledgement that almost all, if not all, penny stocks are scams. However, when a stock is shorted, the risk is unlimited. The positive news here is that there is a limit to the potential loss. And of course that probability of such a risk is enhanced if the investment is a penny stock. When a trader goes long on a stock, he risks losing his entire investment. So why doesn't this create a set up for the perfect storm for those who chose to short these stocks? It's all in the risk. And yes, the share price of almost all hyped stocks will head towards zero as fast or even faster than they climbed. Yes, 99% of penny stocks are scams, or at least losing propositions. While the sentiments against intrinsic value in penny stocks may be correct, the concept of shorting penny stocks to make easy money is severely flawed. The truth, however, is that shorting penny stocks is utterly and completely stupid and potentially puts the trader at far more risk than the guy left holding the bag of worthless shares. Those traders who lie in wait for these situations look upon them as can't miss opportunities to profit from the losses that will be inevitably incurred by the majority of those investors who are attracted to pie in the sky dreams of easy money. The prevailing mindset is that all penny stocks are scams and all hyped stocks will eventually fall out of bed. That's why our customers choose and stay with us.Rafael Pereira runs a pyramid scheme on New Asia Energy and teaches an expensive lesson to the shortsįebruary 5, 2017: The idea of shorting penny stocks, especially those tickers undergoing a promotion, is an attractive strategy to many traders. We therefore always strive to deliver exceptional service at every interaction and to every customer regardless of the size of their trading expertise or portfolio size. Our customers are not only the foundation of our business, but they are also a thriving community of investors. We believe that trading is an activity that should be open to all, and our mission is to level the playing field. Democratising markets, educating the public in financial literacy, and offering the ability to trade the world’s markets in an affordable and accessible way. From our humble beginnings two decades ago, our vision has always been to bring a range of different asset classes together and make them accessible to as many people as possible. ![]() ![]() Our clients benefit from this experience every day, and this is why they place their trust in us. With nearly 20 years of experience serving a global client base, we fully understand the assets, platforms and trading infrastructure required to create the ideal environment for traders. ActivTrades is a pioneer in the retail CFD industry.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |