Penny Stock Picks And Alerts
A time may come when you consider subscribing to a penny stock newsletter that does all the research for you and sends you penny stock picks to choose from and alerts when to trade them. Of course, there is a great difference between free penny stock alerts and fee-based ones.
You will probably find more newsletters about penny stocks than any other type of investment. The sheer number of newsletters available means that you have a great deal to choose from, but you should also notice the equally significant risks.
Penny Stock Picks
Free Penny Stock Newsletters
Vast majority of penny stock newsletters are free, but they are almost never giving you tips out of kindness. Always read the disclaimers at the bottom of the newsletters. You will most likely find they are getting paid to advertise a stock because their investors want exposure for the company. Therefore, free newsletters usually make false promises about low quality companies. Generally, the promoters run websites to drive pump-and-dump schemes. Most investors who get burned by these schemes never took the time to ask why these free websites brought the penny stocks to their attention in the first place.
Jason Bond Picks
There is a big difference between stocks making highs based on an earnings breakout and stocks peaking because several newsletters are paid to promote it. The real customers of the free alert services are these companies, not you. You will be told when to buy, but you won’t be told when to sell. Or it will be too late.
In most cases, these websites ask for your email address, and then they start spamming you with “hot tips” about cheap stocks they claim are going to explode in price. The free newsletters usually have hidden motivations, and the majority of their selections perform poorly.
There are not many benefits from free penny stock newsletters. One of them is that they can be used for identifying pump-and-dump stocks to stay away from.
Penny Stock AlertsFee-Based Newsletters
Paid newsletters, on the other hand, have a responsibility to recommend good investment opportunities. It is their interest to maintain their subscriber base by making legitimate and profitable selections for the readers.
In exchange for a fee you will most probably get reliable and effective guidance from a service that’s in the business of researching high-quality penny stocks. Because fee-based newsletters earn their revenue from their subscribers rather than manipulative schemes, they are motivated to do proper analysis and uncover picks that perform well.
All this doesn’t mean that if you subscribe to a penny stock newsletter, you start trading immediately. Wait to see if its picks are going up in price first. Always treat the picks as ideas only, to which you can then apply your own due diligence. If your trade fails, the blame is all yours. If it succeed, you are on your way to become on of penny stock success stories.
As a conclusion, be wary of paid promotions in any newsletter — whether free or subscription based. Even some paid newsletters receive compensation from the penny stocks they profile, so what appears to be a legitimate newsletter can be a cleverly disguised paid advertisement. Read the fine-print that comes with any alert service. Paid promoters are very good at hiding the fact that they receive money to cast the penny stock in the best light.
You may know that a significant number of trades are trading Over the Counter (OTC) Markets, and the other penny stocks trade on different exchanges like NASDAQ or OTC Bulletin Board (OTC-BB).
Over the Counter (OTC) Markets include Ping Sheets, OTC-QB and the OTC-QX.
Now we all know that sometimes the best Penny Stocks are traded on NASDAQ, and remains a perfect place to find a mid-range penny stocks, let’s say a range from $2.00 and $5.00 a share. NASDAQ is well known that have a high concentration of technology companies, where the large companies are between those penny stocks we are interested to invest.
NASDAQ has a variety of tiers, potential expose, each with differing fees and minimum share price is depended on the tier. Therefore in order to be listed on NASDAQ, there is a minimum share price which can not dip below $1.00 minimum price on ongoing basis if the company want to remain listed on NASDAQ. Therefore companies which are looking to get listed on NASDAQ have first to take the risk of capital raising and making “sure” somehow that their share price will go minimum $2.00 or $4.00 otherwise they know they will get out of NASDAQ.