Which Penny Stock Alerts Are Worth My Time And Money?
There is no shortage of websites offering penny stock alerts.
The person who for whatever reason becomes intrigued into the world of trading soon finds this out as he or she ventures to Google and sees the massive amount of listings waiting to be clicked after they type in a search query such as "best penny stock alerts" or something along those lines.
What most people have to learn the hard way is that some of these websites are preying on their lack of experience in trading pennies.
Want me to explain that a bit? Sure.
I'll be as brief as possible.
Basically, the vast majority of these websites thrive on collecting email addresses of would be buyers of their picks.
Every week or so, these websites send out email blasts to their subscribers with a new penny stock recommendation.
Some people blindly follow the advice given..
..
and end losing 70% to 90% of their money on that pick.
Most of these newsletters are compensated to send out these picks.
This is a conflict of interest, and the promoter is required by law to disclose any compensation they receive for profiling the stock mentioned.
Paid promotions are not all bad stocks to trade however.
The key is to find newsletters with a track record of success.
Most of these websites will brag about their prior records, but I wouldn't believe any of them.
You need to see these things play out over time for yourself.
There are several variables to consider as to whether or not a website has a solid track record of previous picks.
To name one, you need to look at a chart of a recent stock pick.
Then evaluate the exact date of the stock promotion and see whether or not the stock actually moved up for most of the day.
Check the second and third day.
By doing this you get an understanding as to whether or not you could: A) Buy the stock on day 1.
B) Sell the stock for a higher price on day 2 or day 3.
The reason you need to do this research is that some newsletters will brag about how a stock pick "went up 450% in one day"...
but upon further research you see that the stock actually only moved higher for a small portion of the day and ended up closing negatively for the day.
I've been around this niche for many years.
I've seen some good stock pickers and a huge amount of crappy ones.
The person who for whatever reason becomes intrigued into the world of trading soon finds this out as he or she ventures to Google and sees the massive amount of listings waiting to be clicked after they type in a search query such as "best penny stock alerts" or something along those lines.
What most people have to learn the hard way is that some of these websites are preying on their lack of experience in trading pennies.
Want me to explain that a bit? Sure.
I'll be as brief as possible.
Basically, the vast majority of these websites thrive on collecting email addresses of would be buyers of their picks.
Every week or so, these websites send out email blasts to their subscribers with a new penny stock recommendation.
Some people blindly follow the advice given..
..
and end losing 70% to 90% of their money on that pick.
Most of these newsletters are compensated to send out these picks.
This is a conflict of interest, and the promoter is required by law to disclose any compensation they receive for profiling the stock mentioned.
Paid promotions are not all bad stocks to trade however.
The key is to find newsletters with a track record of success.
Most of these websites will brag about their prior records, but I wouldn't believe any of them.
You need to see these things play out over time for yourself.
There are several variables to consider as to whether or not a website has a solid track record of previous picks.
To name one, you need to look at a chart of a recent stock pick.
Then evaluate the exact date of the stock promotion and see whether or not the stock actually moved up for most of the day.
Check the second and third day.
By doing this you get an understanding as to whether or not you could: A) Buy the stock on day 1.
B) Sell the stock for a higher price on day 2 or day 3.
The reason you need to do this research is that some newsletters will brag about how a stock pick "went up 450% in one day"...
but upon further research you see that the stock actually only moved higher for a small portion of the day and ended up closing negatively for the day.
I've been around this niche for many years.
I've seen some good stock pickers and a huge amount of crappy ones.
Source...