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DAGMA is a stock market newsletter. The newsletter talks about the five most common newsletter scams used on investors in their newest edition.

According to DAGMA, one of the most common tricks used is the “Pump and Dump” scheme. This scam begins with the artist buying a large amount of stock to artificially inflate the price. The stock rises and then he publishes a newsletter, promoting the stock as “hot.” Once the readers begin to buy the stock, the price will falsely inflate and the scam artist "dumps" the stock to make a profit off of the victims.

Another scam called “Selective and Deceptive Performance Reporting,” makes unsubstantiated claims about several stocks picks. For example, “The Getting Rich with Penny Stocks” scam artists choose penny stocks to peddle off onto their readers as “sound investments,” instead of the investment gambles that penny stocks often create. Then, the scamming stock market newsletter directs their audience to phony resources that make outlandish claims about their stock picks. Similar to the “Pump and Dump” scheme, deceptive performance reporting gives scam artists the advantage over poorly informed investors.

While outlining the deception and trickery in scam newsletters, DAGMA also explains good stock market newsletter strategies, takes readers through step-by-step stock purchasing processes and help them make more informed decisions.

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