The ease of investing in stocks now makes many people interested in participating. In addition to long-term investment, not many people want to get a profit as quickly as possible without struggling. However, as beginners, we should follow the information on stock price developments and the ins and outs of the stock advisor newsletter that we can get at low prices. We also have to be careful of the shares that are manipulated by market participants because now many people have been made bankrupt after buying these unhealthy shares. The following are the characteristics of the stock that are suspected to have been manipulated:
Enter the unusual market activity (UMA) list.
These shares will usually be hit by a warning from the Stock Exchange because they have experienced an extreme increase for more than 2 days. The extreme definition is to go up to the biggest daily limit, either 20%, 25%, or 35% per day, depending on the stock price.
Because it has entered the stock’s radar, the UMA can also be an alarm and warning to investors and traders in the market that the strengthening of the price is out of the ordinary and there is a possibility that the stock is being priced by market predators.
Bid and offer are also (not reasonable)
The bid is a queue to buy shares at a low price, while an offer is a queue to sell shares at a high price. Unhealthy stocks are usually traded in large numbers, but the bid and offer positions are thin.
That is, in almost every price of the queue, both bid and offer, the queue is uneven even often only 1 lot per price which makes it easy for the dealer to raise its share price.
The financial performance and information of the issuer is not in line with price increases
Extreme price movements and abysmally create unhealthy stocks are not in line with the financial performance or are not accompanied by news and information from internal issuers.
Sometimes its financial performance grows 50%, but not infrequently it actually shrinks or its performance declines more than 50% when the price rises unceasingly so that the stock price increase often does not coincide with the performance and corporate actions announced by the issuer.
Cannot be analyzed
Because financial performance is not as high as rising share prices on the market, financial ratios and valuations of unhealthy shares are usually too high compared to their closest competitors or even make no sense. In other words, this stock cannot be fundamentally analyzed.