Penny Stock Picks From Newsletters – Do They Work?
It’s true, you can make money in the penny stock market. But, you need to be careful, too. Penny stocks can turn into a nightmare if you are not careful. I’m not saying that you should never buy penny stocks, but I am suggesting that you pick them with care. Here’s why:
First, here’s a simple rule for picking penny stock picks. If you want to make a bunch of profits in a short amount of time, then lower your odds of those profits coming from stock picks with high volume. That means staying away from penny stock bulletin boards and newsgroups. Yes, I said it… bulletin boards and newsgroups!
Sure, it’s easy to find out what penny stock picks are popular. But, it’s hard to know what those stocks are really worth. For example, what about the real companies offering those picks? Can you get a better return by buying shares in them?
You have to know what you’re looking for. If you want to trade penny stocks, then don’t trust anyone who tells you that trading them “will” earn you a “big profit”. Those companies may be on your penny stock list, but it’s risky trading in them. It also makes sense that trading penny stocks won’t pay you much. So, before you even consider buying a share of any company listed on a penny stock list, check out its financial records. If it’s a good solid company with a profitable business model, it could pay off big…but you can’t count on it.
This is another reason why you shouldn’t rely on penny stock picks alone. The best thing for you to do is to use a reliable penny stock newsletter and a good background understanding of the financial business. While you’ll need to spend some time doing due diligence on the companies, you’ll have a lot more success if you know how to do it right. And you can learn all of this if you subscribe to a professional newsletter with a money back guarantee.
Most newsletters will include a list of penny stock picks that they have done in the past as well as information on what penny stock exchanges they are currently involved in. This is a great way to get a feel for the various trends that are occurring in the market. But once you’ve decided what you’re looking for, you should do a little research into the company. You should definitely avoid joining any companies whose primary market is the same as the one that you chose in your newsletter. There’s a chance that the company might be making a mistake somewhere…so it’s a good idea to stay away from those companies.