Chronicle of a Foretold Pump/DumpPump/Dump schema:
Discrete Share accumulation.
Broadcasted Triggering Event (news, rumors, forums, etc).
Gather the mass of "Bagholders".
Dump all the load.
Pocket the quick profit.
I am not a fan of " meme stocks " because they're very much like penny stocks, prone to pump/dump schemes. How legal or illegal is this practice?, it is not us to decide, there are authorities who are supposed to regulate these behaviors.
Regardless of the morality of a it we can analyze the radiography of the move. Using the volume bars feature, you can see "big fat" candles on the accumulation phase, the "rumor" phase where the "roaring kitty" name was heard in the news, the spike and immediately took the stock to a quick profit of +120% overnight, and the fade phase, where the only thing that remained at the end was the frozen smile of the hopeful bagholders with a fading volume.
#LearnToEarn.
Be careful where you put your money, trading and investing requires knowledge of the company, its balance sheet, fundamentals and/or technical metrics. Don't follow the crowd, else you'll end up in the slaughter house. There's no free lunch in Wall St.
Let's remember this quote: "The game of speculation is the most uniformly fascinating game in the world. But it is not a game for the stupid, the mentally lazy, the person of inferior emotional balance, or the get-rich-quick adventurer. They will die poor." Jesse Livermore.
