Pumped and Dumped-Upon

My worst investment was in a company that specialized in liquidation services, selling items on eBay. Based on the e-mail I received hyping it, I knew it was a pumpand dump scam. I figured I would beat the criminals at their own game, make a few bucks, and run. I bought. I watched the price climb quickly. I didn't take my eye off of my brokerage's screen all morning, planning to sell at the first sign of weakness. I thought, "I'm so much smarter than these people!" Then it happened: My company's server lost power. It took about 20 minutes to get my account back up. Guess who lost his shirt? I am an idiot!

- Zac C., Denver

 

 

 

 

 

The Fool Responds: You're playing with fire, dealing with easily (and frequently) manipulated penny stocks. People get excited, thinking they'll get rich because they're buying 10,000 shares for 5 cents apiece (costing just $500). But if the shares have been hyped up from one penny to five, they can easily and quickly plunge back to one - or below.

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