When it comes to trading stocks, there’s more to it than just spotting the top gainers.
Sometimes this kind of activity in the market doesn’t seem to add up and these “profits” can get you into trouble.
Take Avalon GloboCare (AVCO) for example… this particular stock shot up 124% in a single day of trading, but then turned around and fell nearly as fast.
More times than not, these massive fluctuations hint towards a shady pump and dump scheme that the insiders are behind.
That’s why I’m here. To expose the establishment and steer you clear of these no-good stocks that may look appealing on the outside.
First things first, what is a pump and dump?
Without getting too hung-up on all the details, it’s basically a fraudulent practice where insiders encourage investors to buy shares to artificially inflate the value of a stock and then sell those shares once the price goes up.
This is exactly what seems to have happened to Avalon GloboCare!
On January 22nd, over 1.58 million shares exchanged hands, pushing Avalon GloboCare’s value up 124%!
You can check out this price bounce in the chart below.
Without even knowing how to read charts, you can still easily spot this increase. Either way, this uptrend was short lived…
Just as fast as this profit took place, the stock price fell back down again.
From a high of $13.50 one day to a low of $3.78 the next, Avalon GloboCare returned to penny stock range.
Don’t be fooled by these pump and dump schemes. It’s one of the dirtiest tricks of the trade!
Sure, pocketing a 124% profit would’ve more than DOUBLED your original investment, but what good is this gain when you immediately have to cough it up once the price drops down again?
Riding these same AVCO shares to the top would’ve been all fun and games until it’s price fell back down to where it started.
It’s not right for the insiders to take advantage of traders, such as yourself, which is why there’s more that goes into trading stocks than just keeping an eye out for these increases.
It’s safe to say that you should steer clear of Avalon GloboCare for the time being, as for any other stocks that appear to be skyrocketing out of the blue, and stick to purchasing shares that are climbing up for a reason.
