In a pump and dump scheme, paid or unpaid stock promoters start pumping stock by sending emails to members. You probably receive frequent e-mails from people (stock promoters) you don't know,did you receive any email Mark? In the case of PCFG it has not happened yet. 2 or 3 members just writing on investors hub can't make a successful pump.
How did you find out about the stock?
Most people find out about penny stocks through a mailing list and some excellent penny stock newsletters, however, there are just as many who are pumping and dumping. They, in cohorts with insiders will load up on shares, then pump the firm to unsuspecting newsletter subscribers and these subscribers buy while insiders sell. Guess who wins here!!
Not all penny stock newsletters are that bad; having worked in the industry for the last eight years. The difficult job then is to spot the good companies from the bad? Just subscribe to a penny stock newsletter, and track the investments. Was there a legitimate chance to make money? Find out whether they have a good track record of providing subscribers with opportunities? You can also subscribe to free penny stock picks and alerts offered by Penny Stock Pick Alert.
Another important tip that I would like to offer is never to invest more than 20 percent of your overall portfolio in penny stocks. You are investing for money so it is recommended to preserve capital to fight another battle. If you put too much of your capital at risk, that will automatically increase the odds of losing your capital and if that 20 percent grows,
Successful traders make tons of money while trading in the penny stock market. Penny stock investments offer huge money making potential to the investors.If a stock trading at 5 cents moves to 10 cents then money gets doubled in no time. Many penny stock investments have gained 500% profit within few days.
On the contrary, stocks that trade on the big stock exchanges may take months or even years for the share value to increase. The truth is that even though these stocks are highly rewarding, they are highly risky in nature as well. So, if the investor wants to minimize the risk then he should buy stocks that have high growth potential than choosing ones which have tendencies to become worthless.
Even companies like Google started off as penny stocks. So you can easily image the profit made by investors who purchased penny stocks at its nascent phase.
AI
