Be Aware And Know How
To Check For Stock Scams
In the White Top View post, Crooks steal $140 million – your defense against stock scams we discussed stock scams in the White Top View Series, Scam Defense. This post, 4 tips to check for stock scams we cover easy ways to check up on scams and scammers.
To keep investing safe, fun, exciting, interesting and profitable, we need to avoid scams. This post gives you four easy ways to check out the sales rep or promoter.
4 tips to check for stock scams – Being aware and watching minimizes your stock scam exposure
Avoid the OTC Market
Ignore any unsolicited contact
Turn on your greed control
Do a registration check
No OTC Deals
As discussed in earlier posts, just stay away from the dreadful OTC Market. The Over The Counter Market has many bad deals. Simply avoid that market to stay clear of those deals. That avoids most North American stock scams. But the scams are not all there. Here are other things you can do to avoid becoming a stock scam victim.
Unsolicited Hang Up
Skip all the drama and loss of most scams by simply refusing to deal with any unsolicited promotion. Be cautious of any phone call, email or social media contact from a stranger. An unsolicited call promoting a hot stock or an investment opportunity is a scam. There are many of them; there are no exceptions.
Just hang up. Do not respond. Delete, mark as spam and forget about it.
Greed Can Hurt Your Future
Your greed gland needs some talking to. We must keep our greed under control and expectations reasonable. Keep investment and profit-making expectations realistic. Do your homework. Get help from someone with experience. Seek professional advice.
Spectacular returns are possible
Legitimate companies can produce spectacular returns. AutoCanada first caught my eye as a $6 stock. It had a spectacular ride to $92 then retreated to the low $60’s. It has a history of paying and increasing dividends.
This is an example of a company that can fit in an investment portfolio as an income play. Alternatively a trader can find the volatility and price swings a good playground.
For me this is an income play with considerable upside. At times the bumpy ride annoys but the dividends keep coming and growing. The business is real and I believe in the fundamental strength of the auto market. This company appears to have a solid future with much more to come, in my opinion.
I certainly was not in at the start of the ACQ party. Coming late or after a good run starts is not too late. Such investments can still be very profitable. Just buy into legitimate businesses like this one. There is no need to go to a gambling den. Instead find and invest in real companies to hold solid winners.
In future posts we will discuss how to find good stock targets and how to do the research so you can invest with confidence.
A quick easy scam check
When a promoter gets a friend or acquaintance to refer us, we are more vulnerable. Promoters seek referrals from trusted friends to avoid our natural caution with a stranger. To protect ourselves we need an easy way to check out any salesperson offering an investment.
The quick easy answer, do a quick easy registration check on their name.
Get the name of the sales rep and the firm. The name of the sales rep is enough to start. Running a check is quick, easy and instant.
Canadian Registration check
Click this link: Canadian Securities Administrators National Registration Search
Enter the name of the sales rep, take any “no records” return to mean scam.
American Registration check
Use the Financial Industry Regulatory Authority site link: FINRA BrokerCheck
Enter the name of the sales rep, take any “no results” return to mean scam.
Scammers are clever but with our brains in gear we can avoid a ripoff. Just say no and cut off contact with the scammer. Help others; tell your friends and family. Our very best defense against any scam is being aware and making the effort to become educated investors. Listen to your gut feelings. If it seems too good to be true, you are right.
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Have a prosperous day!
These discussions and information intend to help you better understand markets and investing. I am not a financial or investment advisor; opinions are for informational and educational purposes only and are not intended as investment advice. For syndication of the site or blog, please contact info@WhiteTopInvestor.com.
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Links to the White Top View Series, Scam Defence