As a diligent reader of Brett Steenbarger's blog, I followed one of the links he posted on the subject of emotions and their affect on trading. A specific link that caught my eye was "Spam Spasms: This Stock Ready to Explode!".
I believe I get around 20 pink sheet's spam related emails a week, not including the ones which get caught by Gmail's spam filter. While reading this article I was amazed to find how many people fall for this scam. It appears that about 100 Millions emails are sent every week. "Spam touting also produces a significant increase in trading volume. On days when there is touting (no touting), a touted stock is the most actively traded stock 81% (6%) of the time."
I'm wondering why is it that people cannot distinguish spam email from a true email. Why is it people trust someone they don't know and use their well earned money to buy stocks which they know nothing about?
History doesn't change and people don't learn from there mistakes. At least some of them don't.
I'm planing to upload some statistics about my system in the next week. I'd love to hear your comments about the results.
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