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People who believe the obviously false claims of VDSC will sadly end up as loosing bagholders.
One of the reasons people continue to believe the charlatans who run obvious penny stock scams and continuously relase false and misleading information?
Heartily 1000% agree!
Important information for penny stock investors and traders:
What is "due diligence?"
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=87090132
Beware of "confirmation bias" and "motivated reasoning:"
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=83295676
Beware of the "sunk cost fallacy;"
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=91643660
Don't become addicted to "hopium:"
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=83646747
Just noticed my iHub odometer reached 10,000 posts!
It took nearly 10.5 years to get there. It's funny because I really wasn't watching for a milestone like that. I just happened to look at my profile and saw the statistic.
I once took a photo of a car's odometer at 100,000 miles. This feels like the same.
Profile link: http://investorshub.advfn.com/boards/profilea.aspx?user=19309
Screenshot below:
~ Cassandra
Regarding paid promoters: One of the disturbing things
Regarding paid promoters: One of the disturbing things I have noticed in the last year is that paid promoters are now paying individual/private iHub posters to promote the stocks they (the promoters) have been paid to promote. These mostly previously private posters then spam the discussion boards of the stocks being promoted for a tiny fee.
Because they are receiving compensation to promote a stock, iHub requires these subsequently-paid posters to have an IRP account (accounts for paid promoters), which includes a link for them to disclose the stocks they have been paid to promote, the amount of compensation, who paid them and the date. Unfortunately, I don't believe that most of these private promoters are accurately disclosing their payments, and if they do, they are not doing so on a timely basis. I also think that not all of these paid posters have registered IRP accounts and provide disclosure.
The payments to these posters are often $50 or less per stock being promoted, which seems to pay for these posters to spam the forum of that stock with dozens of posts per day touting the stock as well as spamming other trading forums about it.
What is due diligence (DD) anyway?
In the world of penny stocks, DD is widely misunderstood to be all of the great things that are claimed to be happening or supposedly will be happening. Usually these "great things" are unverified and typically are never able to be verified or ever come to fruition (regardless of the stock). This kind of information is hype, not DD.
In reality, DD is an important verification and risk assessment function which is legally required in certain circumstances. DD seeks to verify all material claims made by the company including its financial statements, press releases, etc., considers the financial stability of the company and ability to achieve its business plan, vets the officers and directors, reviews the past and present performance of the company, etc., in order to make informed decisions about an investment initially and whether to continue to hold after buying in.
DD regarding a stock investment needs to be continuously performed over time, particularly a penny stock. It can be difficult to do DD on a company with a limited history. However, as time passes, the ability to perform verification and risk assessment DD improves. Often (probably usually), penny stock investments don't live up to their initial hype. Over time when the "great things" fail to materialize and the company has to dilute to stay in business, the stock price declines and often becomes illiquid as new investors are able to assess the past history of failed expectations.
Information and links regarding due diligence:
Hopium
Beware of confirmation bias and motivated reasoning.
Once an investor has bought into a stock based on faith in it, they may fall victim to confirmation bias and value only information that confirms their original bias in favor of the stock while ignoring even factual information or evidence that refutes it. Confirmation bias can be very costly to investors.
http://skepdic.com/confirmbias.html
http://www.fool.com/investing/small-cap/2004/11/30/beware-confirmation-bias.aspx
http://misrc.umn.edu/wise/papers/p1-3.pdf
Other biases discussed in this article as well: http://rpseawright.wordpress.com/2012/07/16/investors-10-most-common-behavioral-biases/
There's an even higher level of confirmation bias called "motivated reasoning" (reasoning suffused with emotion).
Congratulations on opening a new message board on IHub!
To alert people about the real world at different levels sounds like a challenge. Best of luck of performing a needed civic duty.
But, as a cautionary note and not to dampen enthusiasm or interest, most folks are too busy just trying to get through the day to pay much attention to anything other than the basics of life. To disturb their somnolence or to stimulate them to think seriously about financial chicanery and to jolt them towards reality like the morning jolt of caffeine-loaded java seems to do, may be dangerous to their mental health. Too many people choose to live their lives in ignorance and denial; it makes it easier to cope with the everyday challenges. All IMHO.
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