Why no one should be mad at HappyPennyStocks

My twitter timeline today was filled with angry 'investors' in HappyPennyStocks latest stock pick $VTPI. $VTPI (Vital Products) is just another OTC sub penny stock. For those who don't know who HappyPennyStocks is, he's a self-proclaimed stock promoter. He's last stock promo $CTTG had two big up days and was up over 2000% until it finally collapsed on the third day. Today's $VTPI was on the extreme end of what I like to call a 'Dump Promo'. You can see his promo video HERE. I call $VTPI a dump promo because except for the first ten minutes after the initial gap up, the stock tanked big time well below the opening price.

Like with most stock promotions, a lot of people got burned when the dump started. But is HappyPennyStocks really to blame? I mean he created this crappy pump, but I'm pretty sure he never held a gun to anyone's head to buy the stock. I personally have criticized him on twitter because he certainly has been misleading and offered a lot of newbies horrible advice. But at what point does personal responsibility come into play? As a trader, if you cannot evaluate yourself critically, then you are bound to repeat the same mistakes. People placing their buy orders 10%  above the ask price, got horrible fills. Others got in when the stock was up nearly 1000% and kept their fingers crossed hoping it would keep going...really? I mean how can you be surprised when no one wants to buy a sub penny stock up over 900% on the day. And as we all know, the stock market is a simple game of supply and demand. When the demand disappears and can no longer sustain supply, the stock tanks. HappyPennyStocks received a flurry of attacks, some of which became downright personal.

Although I do not support personal attacks, I was happy to see veteran traders like Modern Rock call him out. Hopefully people can learn from this experience. My biggest issue about HappyPennyStocks is I am still unsure what his full agenda is. First he makes a video talking about how this stock was 'going to the moon'. Then huge sellers come in and dump on everyone else, and now it turns out he 'never owned a single share'.

HappyPennyStocks did not disclose this in his video. Although this may or may not be legal, I wonder how Happy - Pun intended - his followers were to find out that the promoter of $VTPI didn't think it was a good idea to buy $VTPI. HPS (HappyPennyStocks) got caught in a web of lies thanks to some tough good old-fashioned twitter interrogation. At the beginning, he stated he was never paid to promote stocks.

 Well it turns out that was a lie. He was actually PAID to promote $VTPI. I am pretty sure failing to disclose this is illegal. But I do not expect the SEC to come knocking on his doors anytime soon. The crazy part of this story is the people who lost the most money on $VTPI today, will be the first to buy his next pick. All in the hopes of 'heading to the moon'

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