6 Stock Market Manipulation Tactics And How To Avoid Them

This video is about 6 stock market manipulation tactics and how to avoid them.
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Market manipulation is frequently blamed by unsuccessful investors as the primary cause of their failure. Winners, on the other hand, recognize that their success or failure is solely dependent on their market knowledge and ability to put that information into practice.
Rather than complaining, winners are constantly seeking to expand their knowledge and skill set in order to better comprehend how the market operates.
Understanding how the market works compels one to face harsh life realities. One of these harsh realities is that if money is involved, people will try to gain an advantage using legal and unlawful ways.
In today's stock market, illegal financial market manipulation is rampant. Knowing how to spot market manipulation gives you an advantage over those who simply ignore or deny it.
Market manipulation is unavoidable.
Wherever active investors meet, stories abound of the first stock trading legend Jesse Livermore launching "bear raids" and the Hunt Brothers cornering the silver market to today's stock "spoofing" and V I X rigging.
There are certain similar themes and warning signs in market manipulation tactics. In this video I’ll show you six stock market manipulation tactics, and how you can avoid them.
There are three methods of market manipulation that are prohibited by the Securities Act of 1934 and the Commodities Exchange Act:

Spreading Rumors:
Depending on whether they want to sell or buy, fraudsters might spread rumors to inflate or deflate stock prices. Spreading rumors and falsehoods is easy with social media, chat rooms, email campaigns, and bogus newsletters.

Fictitious Trading:
Fictitious trades are phony trades that are used to create the illusion of activity or price movement. There is no change in ownership in these trades, and the trader is not exposed to any financial risk. Fictitious trading is defined as placing a large number of buy or sell orders and then canceling them.

Price Manipulation:
Price manipulation strategies can raise or lower prices by utilizing large volumes of trades. Inactive shell corporations with registered shares can also be purchased by fraudsters. They then use a series of fraudulent transactions to boost the value of the shares.

1. Fake News
The term "fake news" has recently gained popularity. Large or media-savvy stock market players have long tried to distribute false information about a firm or even the entire market in order to manipulate it to their advantage.

2. Pump And Dump
The easiest strategy to avoid a pump and dump is to avoid buying equities that are rapidly increasing in value. Pump and dumps can be profited from by fading the move higher, as indicated in the previous section.

3. Spoofing The Tape
When sophisticated short-term investors make orders in the market with no intention of having them filled, this is known as spoofing, also known as layering. Others view the massive orders awaiting execution and assume that a market whale is attempting to purchase or sell at a specific price.

4. Wash Trading and Matched Orders
Fictitious trading includes things like wash trades and matched orders. When a large player buys and sells the same security repeatedly and very instantly, this is a tricky form of manipulation.

5. Bear Raiding
Bear raiding occurs when a large player uses large sell orders to drive down the price of a stock. As stops are hit, the price drops, adding to the selling.

6. Marking the Close
The practice of marking the close is a high-volume trading strategy. At the conclusion of the day, a large number of trades are executed, falsely inflating the stock's closing price.

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