Penny Stock Alerts Explained for Beginners
Penny stock alerts enable beginning and experienced investors to make well-informed decisions about choosing stocks that could potentially be profitable. These stocks can increase hundreds of percentage points over a short period of time, thereby enabling you to earn a significant amount of money very quickly. Many beginners trade penny stocks in the hopes of getting rich quick. Unfortunately, that’s not always how things work out and you could potentially lose a lot of money.
If you have an e-mail address and have done a Google search for penny stock alert services, you’ve probably seen thousands of search results that advertise that advertise them. Everyone claims that you will earn huge profits quickly without encountering much risk. What you need to remember is that penny stocks aren’t the Holy Grail of day trading and investing. However, they can provide some very valuable lessons about systems for earning profits and minimizing your losses.
First and foremost, you need to be aware of the hundreds if not thousands of penny stock alert scams that are victimizing experienced and novice traders. Consequently, you need to be extremely careful when choosing penny stock alert services to help you in your trading endeavors. So, how do you know whether one of these services is a scam or not? Here are some helpful tips for avoiding these scams and making the most out of every opportunity you encounter.
A Word about Penny Stocks
As their name implies, penny stocks are low-priced stocks characterized by their low market capitalization. The SEC currently defines penny stocks as those trading below the $5 mark. Originally, that figure used to be $1 until the SEC recently redefined them. On the surface, their low price makes them an extremely enticing investment option. Just be aware that there are inherent risks involved because of their extreme volatility. The allure of penny stocks is the sharp moves they can make in either direction.
Penny stocks have the potential for turning smaller investments into large profits over an extremely short period of time. As with any other type of trading investment, there is always an element of risk attached in the form of volatility. Based on the trading flow of these illiquid securities, this volatility can change abruptly without making any sense as to why. Furthermore, penny stocks are also referred to as “low market capitalization” or “micro-cap” stocks.
Penny Stock Marketing Schemes
You’ll quickly discover that there are hundreds of penny stock alert services available online today. Unfortunately, not all of them are reputable or trustworthy. If you’ve ever read any of their advertisements, they can be extremely persuasive. Some will claim that they know which stocks will increase hundreds of percentage points in value and could potentially earn huge profits. It would lead you to believe that it’s the perfect solution for trading penny stocks.
Penny stock alert scams typically employ a very aggressive marketing style that appeals to many unsuspecting investors. However, when you take a closer look at these different offers, you should always be cautious and take a step back to look at the whole picture. Remember, if the offer looks too/ good to be true, then it usually is. Once you learn how to identify the different penny stock scams that are out there, it will be easier for you to avoid being victimized. However, there are no sure-shot profits but learning how to make money through these stocks. You might encounter some issues but the fact is that
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