The RebelTrader Pledge

There are hundreds (if not thousands) of web sites on the internet for stock market trading, stock picks, education, etc. Have you even gone to a web site and they have an extensive write up about some company (typically a pink sheet stock) and the web site makes the company sound like it is going to be the next big thing. They provide detailed descriptions about how good the company is, or they might talk about how great the prospects are for the future, and they make the web site look very official and professional. BUT... have you ever clicked on their disclosure statement? Or looked at the very fine print at the bottom of their site?



Some web sites provide very detailed analysis of companies and make it sound like you need to invest right away. But the web site may actually be nothing more than a paid "pumper" (Pumper: a person or company that promotes a stock for their own benefit). In their disclosure statement you will find that the web site actually received financial or other forms of compensation for promoting the stock on their web site. Of course those web sites will always make it look like they are providing a real analysis of the company and that the stock (company) is a good investment. But their interest in writing the glowing report is not for you, it is for them and their client (the company). They get paid for making the company sound good so that more people will buy the stock.



The reason why many small companies pay money to these "pumpers" is to raise capital. The company needs money and the only way they can get it is if their shares start getting purchased. In some cases you could be buying shares of a company that is on the brink of bankruptcy or in other dire financial troubles, but you never find out about that until it is too late and your investment dollars have vanished. These web sites go to great extremes to look very official and business like, and although they do conform to the law by providing their disclosure statement they usually keep it well hidden so you don't see that (unless you go looking for it). If you stumble upon a web site, or get an email claiming that you need to invest in xyz company the first thing you need to do is DON'T. Find out first if the web site is for real, are they being paid for promoting the company? And any email (SPAM) you get telling you to buy a stock should go right into the 'deleted' folder!



Now.. it gets worse. Not only are there these web sites that are nothing more than paid pumpers. There are individuals that are pumpers too. They are not being paid to promote the stock. Instead these people may own the stock and they want others to buy it so the price will go up and in turn they benefit. So these people will lurk in the many free internet message boards where stocks are discussed and post messages like " A friend who works at xyz just told me that they are going to get a big contract", or "This company is great, I am so glad I got in on the ground floor", or one of my favorites "You better get in while you can because the price is not going to stay low for long". What these people are doing on the message boards is actually 'pumping' up the stock, making it sound good and hoping to get other people to buy it. Then when the price goes up they cash out and leave you stuck with the stock and the price usually falls after the pumpers have had their way with it.



So.. what advice do I have to give you. A lot, never believe anything you read on a yahoo financial message board. Nothing against yahoo but unfortunately that has become a breeding ground for stock pumpers and false information. There are other web sites as well out there that attract stock pushers and you always have to be careful about what you read other people publish in a message about some company. Take for example the recent news about the CEO of Whole Foods, for many years he was posting on the yahoo message boards about how great his company is and ripping apart his competition. And he was doing this in disguise, never saying who he really was. He was "pumping" his own company for his own benefit it would appear. I give the "Dumbest CEO of the Year" award to the CEO of Whole Foods for his antics on the yahoo message boards.


Ok, I said in the title of this post that I have a pledge. And I provide my pledge and complete disclosure here for all to see.

• RebelTraders has never and will never take any money to promote any stock or company.


• RebelTraders will never "pump", "push", "promote", or "suggest" any stock for my own benefit or anyone associated with me.


• RebelTraders stock picks or based solely on technical analysis and/or research of the company and is completely free from any influence of financial benefit for myself or anyone associated with me.


• Rebeltraders will not accept any money or other compensation in return for selecting a stock for mention on my web site.


• All stock picks, charts, and suggestions on my web site are made objectively and never based on drawing attention to a company or stock for my own benefit.

So there you have it. There are many good web sites on the net, but there are many bad ones too. Always be careful what you read and make sure they are not being compensated for their praise of the company.

You now know where I stand. You know that I despise "pumpers". And if I can save one person from investing their hard earned money in a stock that is being 'pumped' then I will have a good day. At RebelTraders there will NEVER be any stock 'pumping, ever!