By: KEN_EKIMS
01 May 2005, 04:27 AM EDT
Msg. 136793 of 136824
(This msg. is a reply to 136792 by jere360.)
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jere you are pathetic!
The difference between you and me is that I am foolish at times but you are a pathetic fool.
Penny stocks, high risk, your chances of making a profit are extremely slim.
However, compared to NAZDAQ stocks which some bought for $150.00 per share and are now worth $3.00 to $ 14.00...
With penny stocks you can make a small fortune if you pick the right one.
IF!!.. If not you lose.
The Single Biggest Risk for Penny Stock Traders - Free Stock Picks
By far, the biggest danger to penny stock investors is free stock picks. They come by phone, through e-mail spam, and even by fax. In many cases, a carefully crafted and fostered 'rumor mill' alerts you to a penny stock through a friend who knows a friend of a guy...
Never buy stocks you heard about through an unsolicited e-mail or phone call...
Never buy picks from a FREE newsletter...
In most cases, the penny stock company is paying people to promote their stock. They mislead you as to the prospects and potential of the company. If they were so good, why would they need to pay for investor awareness?
Dangerous sources of free stock picks include free newsletters, the rumor mill, e-mail spam, chat rooms, promotional web sites, and fax services. In each case, the publisher either has a vested interest in the shares, or is getting paid by the company to produce propaganda.
Generally speaking, the more you pay for a newsletter, the more likely you will get quality picks. The better services are able to charge a premium, because they attract clients through renewals and word of mouth referrals. As well, more expensive services generally put more into research and follow-up.
Benefits of Penny Stocks
While not for everyone, penny stocks are exciting and rewarding investments in many ways.
With penny stocks, you get more bang for the buck. You can turn a few hundred dollars into thousands, just by getting in on the right stock at the right time.
They are also the only way to get in on the best new companies in North America, before they make it to the big time.
Trading penny stocks is a great way to learn about the markets, without risking a lot or over-committing. At the same time, there is a lot more excitement and potential for rewards, because these fast paced investments often make great moves in short time frames.
Solution: Make sure you do your own due diligence on the companies, or get leads about great penny stock companies from a proven newsletter or service. The best scenario involves doing your own research on penny stocks that you have been alerted to through a professional service, and only getting involved after you have looked into the company.
The above from: Penny Stocks Guide (penny stocks com)
