As noted by a 2007 article in PC Magazine, the Internet-based chat room has been a common part of the cyberspace experience since 1979. In this century, a chat room can probably be found for most any topic that has even a single fan. A stock chat room, to cite an example of the genre, is an extremely common fixture on the World Wide Web, offering chat for users of differing skill and experience levels. Before you decide to become a member of a chat room, though, always ensure you know just what you’re getting yourself into.

Technically known as „synchronous conferencing,“ chat rooms range from those hosting real-time online chat to bulletin board-type versions. A stock chat room, for instance, may allow its users to carry on running conversations in the moment, meaning conversations among users are instantaneous. Real-time chat rooms can be a hectic experience for the uninitiated, however, and chat between users can occur at a dizzying pace.

For a number of good reasons, online chat among people living in the world of stocks and investing tends to take place through bulletin board-type rooms. The bulletin board chat room features conversation, or posts, made by members that are screened by moderators prior to their publication within the room. Stock chat room participants themselves have gained a reputation for intensity and even obsessiveness. As a result of their nature, members of chat rooms dedicated to investing, stock, bonds and other activities tend to have their posts screened prior to posting, usually as a precaution by site moderators.

Generally, stock chat room members are members precisely because they love to discuss stocks and other investments. When participating in any chat room, keep in mind its intended topic or subject matter and try not to wander too far off that topic. For example, if you’re in a chat room set up to discuss Widget Company’s stock, try not to overly discuss the new car you just bought last week.

Being set up for a specific purpose, chat rooms require participants to be able to stay on topic or risk earning a bad reputation or even exclusion or banning by other members or room moderators. You might even be required to demonstrate a useful level of skill or experience in trading stocks before being allowed into a site such as a stock chat room. If you’re thinking about joining a chat room, first consider your own skills and experience in its particular topic and whether you can be a useful contributor within that room.

When using a stock chat room, also beware what’s known as „pumping“ or excessive touting of this-or-that stock. In some cases, various users in a chat room may even be paid operatives sent there to shout to the heavens the glory of the stock users are discussing. By pumping up the reputation of a stock being discussed, its share price may rise above that which the markets have normally and rationally priced it. Stock pumping is also sometimes illegal and it’s definitely immoral.

Once a stock has been pumped the logical next step is to dump it. Once a stock’s share price rises to a predetermined level, holders of that stock will dump their shares on the market, thereby increasing their profits while buyers end up purchasing stocks not really worth the prices at which they were bought. Fortunately, a stock chat room that has a strong moderator or administrator presence tends to discourage stock pumpers from hanging out. Chat rooms dedicated to stocks and investing and that don’t also have moderators may see a greater number of pumpers-and-dumpers, though.

There are numerous investor-type websites on the Internet that boast of a comprehensive stock chat room experience. Some websites dedicated to investing in stocks are far better than others. Various subsets of stock market investing, such as in options trading, also exist. Before participating in any chat room, including those dedicated to stocks, it’s smart to learn a bit about the topic, if only to avoid a pump-and-dump scheme.

Looking to find the best information on options investing? Make sure you visit the stock chat room.