The difference between a call or pick...and a pump and dump.
Most people think a pump and dump exists only when an issuer pumps up his stock to sell into the run.
Issuers are not the only source of this acronym, the pump and dump. It has more than one form.
A call or pick, is when you actually do some due diligence into the company and it's operations. Project the companies future performance, and predict a level, up or down that you believe will be achieved within your desired term.
A pump is when you have a following of traders who buy your pumps regardless of the fundamentals of the company.
The ensuing rise in price of the stock creates a surge in dollar volume and price intended for you and your henchmen to sell into, thus leaving bagholders on the backside of the dump.
Ask yourself, if the pumper had no followers, would the stock go anywhere? Think about that.
Pumpers will often do some buying on an obscure thinly traded stock, thus creating a volume "alert" then run around screaming alert alert, even though the company has no valuable short, mid or long term traits.
Their intention is to create a track record of false "calls or picks" that in the future, they will use as a tool to trick you into thinking they know what they are doing and you should not question their call or pick, and just lay your money at their feet, so they can profit and you will not.
Newbie traders need to learn the difference, before they invest.
One very easy way to spot these types of pumper operations, is the pumpers will often criticise anyone bringing valid due diligence to the table that does not tow the 'pumper" line.
Especially if the DD is valid and correct.
Do not be mislead, when you see pumpers calling due diligence providers, "bashers", use common sense and your own judgement.
Check out the DD, take it seriously, likely there is some truth to it the pumper does not want you to know about!
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