So I Want to come on here and make this important announcement. There is a scam going on right now and I'm seeing it on Twitter on Facebook on Instagram and I'm even seeing it right here on YouTube and I want to make sure you guys are aware of it so you don't become the next victim now. I didn't I wasn't sure about this and as I get more information I'm going to keep uploading it and sharing it with you because this is really important and this is. It's super frustrating because the fact is when it comes to trading, it is hard enough as it is already without having to deal with this type of garbage.

So let me talk for a second about this stock yesterday. Uh, SJ y l it's a Chinese stock and I think that part of why this made this big move is because of this scam that's going on out there and it it's It's really crazy and unfortunately I I don't think anything I Hate to say it, but I'm not sure that anything is going to get done about it from the regulator perspective because at the end of the day you know these aren't Apple Facebook You know big companies, these are really small companies. I'm afraid they're just going to fly under the radar. This is just going to keep happening and so that means you have to be especially diligent not to fall into one of these traps.

So if we look at this stock again on the screen share, you'll see yesterday that the stock dropped from $30 down to about $10 a share. It was on relatively light volume. However, it had enough volume that into this selling someone could have and I think was able to ACC accumulate a large position to the long side. Apparently there was a WhatsApp group, several of them that were telling people to short this stock, short, the stock, short, the stock, short the stock, and so people that were shorting it thinking it was going to go to $10 to $5 to $2 they created the liquidity that allowed these other people to accumulate a position and then all of a sudden it halts up.

Once it halts up a second time, and now all the people who shorted are now forced to cover and all of a sudden the orders to sell are gone and this thing resumes. I'm not kidding. At 500, it goes to a high of $598 If you were short, just a th000 shares of this, that's a nearly half a million doll loss. If you're short 10,000 shares of this, you're talking about a $5 million loss.

Or if you were the person who bought 10,000 or 20,000 shares of this. to the long side, you're talking about millions and millions of dollars of profit Now because there's obviously some serious profit that I think was made. This is probably going to happen again, so now you have to be extra careful the next time this starts to happen that you don't fall into the Trap. So let's talk about a little bit of the scheme that I'm kind of seeing right now: I First noticed it on Facebook um well I I guess maybe I've seen it in other places but something I noticed very recently on Facebook was I'm in my Facebook feed and I'm seeing this, um, this sponsored ad here and it's a picture of um, you know Bill Gates He's got his giant glasses on, his guys's kind of like funny head and then it says you know it's it's a sponsored ad so it says sponsor down here and it's like you know investment advice you know, click here and this is a this is a an impostor Essentially, that's not the real Bill Gates Who's running this Facebook group and they want you to sign up to a Facebook group a Facebook group here and then in that group they start promoting their WhatsApp and their telegrams and all these other things and they're getting you into this funnel.

and then they're going to start sending you messages of stocks to buy and stocks to short. So I've seen it on Facebook And and the fact that the you know look, if if you comment on YouTube you might notice from time to time that someone will reply to your comment and it'll look like me, it'll be. There'll be a picture of me, a picture of me here looking handsome as always with this beard that you could just you know, just die for. and um, these like deep Soulful eyes um and then you know the hair and everything.

just like really amazing. But instead of saying Warrior trading it's like Warrior Trading then then it says WhatsApp WhatsApp and then it has a number. you know, whatever, whatever, whatever the number is and he will usually say um, you know, call me, you know and with a little arrow up. Now this has been going on for a really long time and it happens.

happens to me, it happens to probably every Trader out there who's also got a YouTube channel. but the sponsored ads I'm seeing on Facebook kind of takes it to another level because these people are actually running and spending money on paid ads pretending to be Mark Cuban Um, you know Jeff Bezos Bill Gates I mean these really, really big people and then you get into that WhatsApp funnel and there's there's a couple different ways that this works. I've seen it work a couple different ways. I Actually, um, did an episode where I started emailing back and forth with one of these um scammers and in that instance, you know you.

you never know what they're going for. Some of these scammers are trying to get you to send them a Target gift card. something really stupid. um or like a Walmart gift card.

I Had one of these scammers text one of my employees at like you know, 11 o'clock at night. He says hey, this is it's Ross this is my new number uh I'm in an important Zoom meeting right now I need you to do me a favor and my employee is like what so I was like yeah, go ahead see what he says H so he's like yeah, um okay what can I do for you and he's like I need you to run to the nearest Target and get $500 in gift cards and then send me a picture of them and I'm like all right, this is like ridiculous I mean I don't even know, you know it's crazy But anyway, so like there's that level of scam which is very obnoxious, but you know, hopefully you can avoid it because it's so ridiculous. but then there's sort of. and that's these people are imposters.

And then you have this next level that we're seeing here with some of these stocks where they're sending out these alerts. Now the problem here is that there's no transparency. You don't even know who you're talking to. They're kind of.

Some of them are an impostor, they're pretending to be someone else. They're they're sort of trying to share with you this like hot tip and if you act on it, you are doing exactly what they want. So in the case of um, this stock yesterday, they wanted you to short it. Why do they want you to short it? What does shorting do it? creates selling.

It makes the stock drop. Now you could say, well, maybe they were already short the stock ahead of time and they wanted you to short it so it would go down and then they could cover for a profit. Maybe that's possible. Um, but it.

You have to look at this move and you have to ask yourself who benefited from this absolutely outrageous move right here. From $25 a share all the way up to$ 59. and I'm surprised this hasn't gotten halted on a T12 I was expecting a T12 halt on it I'm I'm shocked that it hasn't So this has gone kind of under the radar, hasn't gotten halted. It's still trading at over $100 a share which is 300% higher than it was um, yesterday down from 1,000% But you know who's the person that sold, uh, shares and this this candle had I think it was um, it was about 50 60,000 shares of volume.

So who are the people that sold, sold, sold, sold, sold up here now I Did see um, a few members of warrior who actually had bought this dip for the first halt up. Um, so there were a couple of people that just genuinely took trades on it because they're like oh, this is a good dip trade I'll take the reversal and got incredibly lucky. But here's the problem. This is like you know, being at the right place, the wrong place, the right place, at the wrong time.

Wait, what's that saying I don't know, Um, it. It's this is this is that example of you know you're just like I'm just going to take a trade and then you get run over by a bus like you. You: You don't realize you're stepping across traffic, you don't realize you're stepping across something really shady that's going on right? And and that, unfortunately is what I I'm I'm afraid was happening. Obviously these WhatsApp groups were you know, telling people to short this stock and then all of a sudden the stock ends up up 10,000% So either the WhatsApp groups got completely decimated or they're smarter than your average retail.

Trader Unfortunately, I'm going to have to think that they're smarter than the average Trader because the people that they're preying on are novice beginners who can't even tell the difference between someone who's legitimate and someone who's not. So I I Don't think they're the ones that got burnt sadly. I Think it's the novice retail Trader who got burnt So now I Want to be very clear when I'm trading: I Have a degree of transparency that most people don't have in a Discord Channel When you don't have screen share, you're just hearing the audio of someone saying they bought and sold. You don't actually see their P&l so that that's there's a transparency Gap there because it's very easy for someone to not be honest with You to be in and not tell you they're in to be out and not tell you they're out.

When I'm trading, my screen is right up there in the window. I Well, I'll show it to you. um actually I well I'll I'll log back in and show it to you. so um I'll put put this back up so let's see so you'll you'll see.

Um I didn't take any trades today. Um, but that's fine. So when I'm trading I have my P&l uh right up here like this so you can actually see what I'm in. So I'll just for the just for the sake of um of this video, I'll just buy um one share of um, uh, Bank of America whatever.

it doesn't matter. so I'll just buy one share. All right so you can see right there. So I'm in one share Bank of America and I'm down one one penny a share and I'm going to sell that for a one penny loss.

All right. So you can see when I'm in, you can see when I'm out. But with these WhatsApp groups I mean this. This reminds me 15 years ago, early early in my trading career when we were getting these email Penny Stock alerts they still happen these hot penny stock alerts now at the beginning of my career I fell into that also and a lot of these emails were coming from like Panama they were coming from weird places not in the US Us, not under Us jurisdiction, and most likely the string of who actually owned those companies and who actually own shares of these stocks.

It's all very, very clouded. And this is the problem with trading penny stocks, especially on the OTC market. because the OTC market doesn't face the same regulatory requirements uh, that companies listed on NASDAQ and the Nik face. So you can on the OTC markets, especially on the pink sheets, the actual ownership of a company be disguised through these you know, holding companies and offshore.

This and that, so you never really know exactly who even owns the company. And then you combine that with people moving money in and out of cryptocurrencies and doing the things they do to sort of scramble where the money's coming from it, it's gone. and so this is. We've seen it for a long time in crypto, but with the crypto Market having been in such rough shape shape over the last year, we've seen more and more of this move in to the US market to the stock market.

and I can tell you from my own. You know when I've corresponded with these scammers and tried to kind of bait them and figure out what they want? They don't speak English very well, they're not English first speaking. um people. So I don't know where they're from? Um, people speculate.

They speculate different things and there's probably from different places because there's certainly I would imagine more than one group. but I want you guys to be on alert. so if you see someone commenting and they're like have a picture of me but it's clearly not me, you can report that account. Now the nice thing on uh YouTube is YouTube is pretty good about allowing a content creator like myself to block those accounts and so they won't show up at all and I do that the best I can.

Now they still slip through now and then, but I can get on them quick. but on Twitter on Instagram on Facebook it's horrible. and so even on Facebook I've seen people that there. There are hundreds of accounts that say Ross Cameron have my profile picture hundreds and and they they're Bots they just automatically create them.

It's like this, not just for me, it's for all of these people. all of these big Traders out there they all have. They all deal with the same thing and periodically we all come on and we give the same message of hey I don't Direct message with people don't ever send me crypto I don't invest for you stock or crypto or anything. but from time to time we hear people you know that that fall into it.

but the stealing money through gift cards or sending me crypto to a random wallet. You know that's one thing. but this here. this is pretty insane because you know a 5,000 share position on this.

You're talking about a million dollars of profit and I think there were some people that said Ross you know this was the market makers that did this, but I don't think it was I don't think it was the market makers because because if I show you my whiteboard here, the way the market makers work, the way the market makers work is they make the market so the market makers are sitting on the bid and the offer. All right. So when this halted up, all right. So this halted up back here at $25 a share.

so it squeezes up to 25 goes up to 25. So you had basic. we had 25 on the bid and it forced the limit up which gave you a cross Market just for a moment there and then it halted. Okay, now it's halted up and all the offers that they already had at 30, 35, 40, 45, 50, etc.

those are all still there. And then there's also the actual real people who put orders to sell at all these different increments. Those are all there. So how's the stock go to 500? Someone put a buy order here I don't know how much they put the order for.

Well, obviously they were willing to pay as much as $598 cents right here. They put the buy order there and they put enough shares here. Maybe it was 25,000 I don't know, Maybe it was 50,000 maybe it was I don't know how how many shares they put, but they put out enough shares to buy every every single one of these orders gone. and even short sellers who are like I'm going to put a short order at ah, 300 bucks.

This is crazy. Well the resumption price was still showing at 1.700 then 500. So even though the resumption price came down because new people put out sell orders, there were more buy orders than sell orders and that created the imbalance. So you know who? where do those buy orders come from? Those buy orders could have come from shorts.

but initially see, this is the thing. Initially, the moment it was halted and started showing that $700 resumption. What that tells me is that the moment it went into the halt, there was already a huge order right here that just was a basic. It could have been a market order, could have been a market order and it was Huge.

Now could that happen? Because of a fat finger, someone typ out a 150,000 share market order by accident. It could happen. However, this didn't resume until after hours. and Market Market orders do not work after hours.

So that market order you know I don't know exactly how that would have worked. I would think that that order would have been canceled at exactly 4 p.m. and if that had been the case, the imbalance would have come back down. Now, you're also able to.

You should be able to cancel an order that's out there that hasn't executed in this type of instance and usually you'd be able to. But in this case, uh, I don't know. It depends on the broker. So initially you get that big spike and then even if they cancel the order, now you've got short sellers who might have been short at you know, $10 or $15 that are now like oh my gosh.

I have to cover. And this is where things get a little scary because now you have your actual clearing firms who are like we have a Trader right now Who has an unrealized loss of a million dollar on this stock which is showing a resumption quote of $700 share? What are we going to do about this? It's been halted for several hours. It's still showing the same price they're going to be at a margin call. The second it resumes, we have to step in and liquidate.

Now there's a story of BPTH where one short seller accumulated an 800,000 share short position wasn't on stock like this exactly had a lot more volume. It was on a biotech that was up with no news so we just started shorting it. but then it kept going higher and higher and when he was down over $10 million the his own firm was like we need to get this Trader out of that position and the clearing firm was like you're you're going to be at a margin call. This whole firm is going to be bankrupt and so now the clearing firm comes in and they have to start closing the position.

And when they start closing the position, they start pressing the buy button for 50,000 shares. They did that 10 times. clearing 500,000 shares. The stock started squeezing from 12 to 15, to 20, to 25 to 30, 35 to 40.

It was insane I Remember it because I we were trading and I was like this is crazy One short seller got completely wrecked completely bent on that trade. Well on this I don't think it was just one I Think it might have been a lot of small rookies who could have never possibly imagined that you could lose that much money on a short. And now here's something. um, a little bit depressing on this trade.

A short. at $15 a share, the most you could have ever made is 100% If it goes to zero, you would have made a 100% return on it. And on this you had the potential As it turned out to lose over a th000 per. that is a horrible profit to loss ratio.

So this should be a warning about shorting small cap stocks, especially shorting Chinese stocks Chinese IPOs Because these have been really popular for these types of moves and I talked about it yesterday. we we saw it on um several others. Um, in the last few the last few weeks we saw it on Wbii. In one day it drops from 14 down to like a dollar a share I don't know Now I'm wondering if this one was also you know group um SMS um or WhatsApp messages going out telling people to short it or if you know, tell me tell us in the comments uh I want I'd love to know chsn another one big drop um I mean and then we had.

We had the whole thing with the special acquisition companies which that I don't even know what to think about. So we're seeing this on so many levels and it's it's concerning and it's frustrating I mean look I love trading I love volatility. but I need to be able to manage my risk and so you know I've done well this year and I I'll I'll focus on stocks where I can manage my risk. but I hate seeing beginner Traders get blown out because of something like this.

It's a real shame it it's you know it's the same thing as a beginner Trader getting blown out trading uh OTC penny stock that just drops 90% in one day or you know they short it and then it goes up. you know, 500% in one day. So for those of you out there who are short sellers I would urge caution shorting these Nano float stocks that have You know, less than 10 million shares and are also in a category that has explosive potential special acquisition companies and recent IPOs Now as a long biased Trader I see some potential in those and those have been places where I've gotten some wins in the past. But I get nervous trading something where I think there's any risk of it getting halted on a T12 and I get nervous trading things where I'm worried something like this is going on because it's like that creates a whole layer of complexity that I don't want to be involved with and I don't fully understand.

Now some people would argue. Look, you know, who cares who's doing this. It's creating volatility. Volatility is opportunity.

capitalize on opportunity at the end of the day. Okay, yes, that's a fair argument. but the risk of getting caught in a T12 halt is is not an acceptable risk. You know.

Today, if I had bought this, um uh, whatever. Um, this stock at you know, $180 a share when it was looking like it was going to go up to 200 100 shares would be $188,000 in the position, a th000 shares would be 180. Grand If that got halted on a T12 and never resumes, that's a bad situation. If you're short, it gets halted and doesn't resume for a long, long time.

You're still paying borrowing fees every single day that it's halted. That's a high level of risk. now. something else that I've noticed.

Um, which I think sort of fuels what's going on here on. Twitter I've been noticing these: I think they're Bots because they're different profile pictures, but they're all putting the same message the same exact message and they're all uh, promoting and advocating, uh shorting these stocks. You know these some of these ones like ZJ um, uh, forgot the the whole ticker. Anyways, doesn't matter, but whenever I see that kind of thing, you know I see bots I'm like, okay, so there's someone out there controlling potentially dozens or hundreds of accounts, all spamming this misinformation.

You know that gets my radar up because I'm thinking there's something weird about that you know, are they? Is this someone who's I don't know. It's just it's it's shady and and unfortunately, we see that in the market. you know and and something you got to be aware of. We see it in the penny stocks.

We've seen it in Crypto for since the beginning, but we're seeing it more in some of these small cap stocks and it's really a shame. So I mean the best thing you could do is be aware of it and try not to fall victim to it. And if you're if you become aware that a stock has something like that going on with it, to use extra caution. every now and then I'll be trading a stock and someone will be like, oh, that one.

there's a whole newsletter promotion going on for that stock right now and whenever I find that out I'm like, oh, okay. so I Can you know you can capitalize a little bit on the beginning of some of those moves? but you want to be careful. You don't know. Stay.

You're welcome because when they reverse, they can reverse Really, really hard and really fast. And a lot of times these are liquidity. They're events designed to generate liquidity, which can allow people to move in and out of positions for stocks that otherwise have no volume whatsoever. So I want to encourage you to be alert.

All right. Do Not fall victim to one of these scams. It is Not worth it. Of course, you should not be blindly following someone who's sending you messages on Whatsapp You shouldn't be blindly following even someone like me who's a proven profitable Trader who's being very transparent.

You just shouldn't follow anyone. Period. You've got to learn your strategy now. I'm happy to share with you.

That's that's totally separate though with these scammers out there. you have to be so careful because what they are doing is they are trying to take your money and if it wasn't working they would have stopped. they'd be gone. But they're obviously winning so don't be the next victim.

the the the best thing I could do is just share this with you and encourage you to share it with other people so it doesn't happen. you know I Just man, it's so it's so. it's so frustrating to hear about this. it's so disappointing and every now and then you know I'll meet someone and I'll you know they'll come up to me and they'll ask me Ross what do you think about You know, do you think I should invest in crypto and stuff like that and I'm like man, you're you're You're like the type of person who's like exactly what those scammers are looking for cuz you just you know it's someone who's just at the very beginning, doesn't quite know and is like oh, I should do this okay look look I almost fell into a very similar situation when I was getting started.

I had someone who was sending these messages to me who said they would invest my money for me and I could just send them my $25,000 my my PDT account and they would Every week they would send me this amount and at a time of desperation you know I was like oh wow, this does sound good now I I did my due diligence and realized it was a scam thank God But you know if things had been just a little bit different, I could have fallen into that trap and that's why you know for the longest time I've been really careful at Warrior I've been trying to always protect our members because we I'm sure we've had people who have tried to become a member just so they could solicit our own. Community you know with with with something or other and I don't let that happen Nope, not going to happen. You can't send private messages because I know what happens in those private messages. people will say hey, I'll invest that money for you Yeah, send me your 25 Grand I don't want to I never want to see that happen so I I do everything I can I'm putting this video out there I hope you guys share it I hope you I hope it's helpful for you.

every single one of you who have watched this video. none of you should be a victim. So for every person who's watched this video, I've I've helped. hopefully I've helped you avoid this.

Um, a terrible experience. And and when it comes to being a victim in the sense of trading a stock that is, you know, actively part of one of these crazy things. Well, you know I I could find myself a victim of it pretty easily. My myself because you know I I do sometimes trade these and I don't always know what's going on.

it's impossible to know everything so you know I Appreciate you guys who look out for me who tell me hey Ross you know I got this message Be careful and I always will try to look out for you guys. So thank you for tuning in this episode! I Hope you find it helpful. This was an important message so I hope I hope you heard it and um, share it with your friends. All right? I'll see you for the next one real soon.

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