You're on the list. We'll send you more insights and updates.

5 Red Flags of Stock Manipulation

Use this checklist before you trade. Spotting these signs can help you avoid pump-and-dump schemes and other manipulation traps.

1 Unusual volume spikes

Sudden, massive volume with little news often signals coordinated buying (or selling). If volume is many times the average and the move feels “out of nowhere,” pause and check who’s promoting it.

2 Heavy promotion on social media

Pump-and-dump schemes rely on hype. Be cautious when a stock is being pushed hard on Twitter, Discord, or message boards with phrases like “next big thing” or “guaranteed gains” and few clear fundamentals.

3 No clear fundamental story

Manipulated moves often lack a solid business reason. If the price is surging but there’s no earnings beat, product launch, or other concrete catalyst, treat it as a red flag.

4 Price moves that reverse quickly

Sharp run-ups followed by equally sharp drops—especially on low liquidity—can indicate insiders or early promoters cashing out. Don’t chase extended moves without a plan.

5 Pressure to act “right now”

Legitimate investing rarely requires immediate action. Be suspicious of urgency (“buy before it’s too late,” “limited time”). Take time to verify before you trade.