Penny Stock Tips Penny Stock Advice
Penny stock tips and advice for the beginning penny stock trader. Where to find free penny stock picks. How to tell a hot penny stock pick from a pump and dump scam.
Lots of new investors think that they could make their penny stock fortunes if only they could get someone to give them a tip on a top penny stock. This is a dangerous way to look for penny stock winners. It is true that you can make a huge profit off a LEGITIMATE penny stock tip. The problem is that there are so many people who buy penny stocks and then give other investors a free stock tip about it. When the other investors who think they have a legit tip buy in, the share price rises. The original investor then sells his or her shares at a great profit while all the others are left holding shares which have fallen dramatically in value. Because trading volumes tend to be low in penny shares, investors can have difficulty exiting their positions even at a loss. So, how can you tell a hot penny stock pick from one of these pump and dump schemes? There is no 100% fool proof way to be sure a stock tip you get from someone you don't personally know is honest. But the following advice works most of the time.
How to Trade Penny Stocks Picks Without Getting Taken
Before you
buy penny stocks
check the
penny stock message boards.
If you find the name of your penny stock company or its stock symbol being hyped on multiple boards or forums, stay away from it. The best penny stock to buy is one that has yet to be discovered by the entire online trading world.Second, research the chief officers of the company. If they have run other successful companies, chances are they can make a go of this one. Also, people with good track records seldom get involved with internet scams. The presence of good officers indicate that the company is real and not just a shell. Finally, check the company financials.
Calculate the company's cash flow.
You want to ascertain that they are not on the verge of bankruptcy in case you do get stuck holding the stock for longer than you had planned to. There are penny stock picking services you can subscribe to. These work, but most of them are prohibitively expensive. Someone who is just learning to trade penny stock will not want to pay a $5,000 per year subscription fee.
Penny Stocks Formula Alerts
is the only reasonably-priced service I have seen. Another thing I really like about this penny stock tips service is that you only pay once. There is no yearly renewal fee. This is a very easy way to find out about hot penny stocks. You'll be alerted when to buy and when to sell. You'll know what price to pay for the stocks and what you should be looking to sell them for.
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