Investing in Penny stocks may be a very lucrative adventure for the wise investor. However, for the unwise sucker, it may be the worst nightmare. There are many different sources to obtain penny stock advice from. Many are not worth the money that you spend on their advice even if it is free. Knowing what advice to accept and which to run from takes a well trained eye. If you have not had at least one year of investing experience, I would suggest that you not attempt to invest in penny stocks. There are many other opportunities for you to make money while investing.

You should rarely accept advice from penny stock newsletter, websites and never from unsolicited e-mails. I remember the advice given to me when I was young. Don’t believe everything you read and only half of what you see. That is certainly good advice for obtaining penny stock advice. So how do you determine which is good advice?

Some pieces of advice in relation to reviewing penny stock advice is as follows:

If you happen to come across penny stock advice on the internet, then you should consider the source of where it is coming from. Take the time to do your own research to determine what is legitimate. Always trade from the legitimate stock exchanges such as NASDAQ or NYSE. You should stay away from over the counter or pink slips. These are the most risky form of investment. You have better things to do with your money.

Take the time to research the opportunities that are presented to you. There is stock picking advice on this website that you can review or you can review stock picking advice from other sources. Your stock broker is a good source. Verify any claims that are put forth. Many sites will put up their winners as evidence of their legitimacy. I have reviewed some I came across and their was no merit to their claims.

Always be skeptical. If it appears too good to be true, then it probably is. Always watch out for high pressure sales pitches. Whenever someone you do not know gives you a “hot tip” then you should ask yourself “why me?” What makes me so special that I was given this hot tip. Don’t fall for the “must act now” line. If you need to act now to take advantage of an opportunity, then it would be better to sit back and watch. There have been many times that I wish I had done that.

I am not saying that you may not make money with penny stocks, I am just saying that you should be careful. It has been said that a penny stock can go from $.05 to $.10 easier than a stock can go from $25.00 to $50.00. However, this is not true. A non-penny stock has so much more going for it. It has a legitimate product, Institutions, insiders and volume. It also probably has years of good financial results to back up its claims.

Should you subscribe to a penny stock newsletter to find your penny stock picks? This is an interesting question. Investing in penny stocks is a very risky venture. They tend to have a very low volume, and the companies may not have a solid future. There is a reason these stocks are trading at below five dollar per share stock prices. Either the company is a new company, they have had a few quarters of bad earnings and the stock price was beat up or they are truly a risky company to invest in.

If you are going to invest in penny stocks, you need to do some research to determine what scenario fits the company you are researching. They may be perfectly good companies that have not been able to rise above the threshold of being more than a penny stock. I once worked for a company that had a history of struggling to make it. They finally landed a good product and their stock price boomed. We had one broker who called and asked where we had come from as the stock symbol appeared on his watch board.

Subscribing to a penny stock newsletter to find your stock picks may be just as risky as investing in the stock itself. There are many different newsletters to choose from that promote themselves as the gateway to profits. They tout their successes and lead you to believe that you need to obtain their newsletter to weather the investing ups and downs. One newsletter I found stated that they had a subscription that normally cost around two thousand dollars but they would give it to me for free if I signed up with my e-mail address.

These newsletters state that they will give you alerts on penny stocks set to make great moves. They also state that they can provide you with in depth research on the penny stocks with new technologies. According to them, you should join their newsletter and make enormous profits.

How reputable are these newsletters? You may never know. I do know that nothing beats doing your own research. If you are going to enter the world of trying to find penny stock tips, you should be willing to drive your own vehicle. Letting someone else drive is simply putting your investment life in someone else’s hands.

Maybe you could subscribe to one or two newsletters and review what they have to say. Set up a specific e-mail address for this venture so you can cancel the e-mail address if things get annoying. Then do your own technical and financial analysis on their stock recommendations. Remember that there is no free ride to financial success. The hard work does need to be done, and nothing gives a person better assurance than having done the work themselves.

All of the content published on this website is to be used for informational purposes only and without warranty of any kind. The materials and information in this website are not, and should not be construed as an offer to buy or sell any of the securities named in these materials. Trading of securities may not be suitable for all users of this information.