Information SourcesUnderstanding Penny Stocks

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Benefits to Look for in Penny Stock Picking Services

VERY IMPORTANT! Protect yourself.

Any web site or service (even printed) offering free penny stock picks is almost certainly being paid to promote those companies. And the types of companies that need to pay a service to promote their stock are generally pretty lousy!

You may read a glowing report on some company with a miracle, break-through, patented technology, but if their claims were really true they would not need to be paying some tout sheet to give them a glowing review.

There are many different penny stock picking services out there, so if you have decided to join one of them here is what you need to know:

Do they offer professional service, or do they just 'say' they offer professional service?

This is easy enough to find out, just by dropping them an e-mail with a question to see how they reply. Better yet, send the exact same question to your top 3 services and compare the speed of response and the quality of response.

Benefits You Deserve

Professional Service
Professional Research Team
Full Team, Not a One-Man-Show
Learning Experience
Ongoing Coverage of Past Picks
Quality, not Quantity
Media Recognition
Unsolicited testimonials
Verifiable Track Record

Do they have a professional research team, or do they just say they have a professional research team?

We have looked around. None of them have a professional research team, they are all just one-man (a few two-man) shows. Their backgrounds are not always even in the financial industry! Don't trust your money to someone who treats the business as a hobby.

Avoid one-man shows!

If the site is owned by the same guy doing the stock picks, he will never fire himself regardless of how bad he does. That is a tremendous disadvantage for you. A service like PennyStocks.com (yes, I am biased) has fired analysts in the past when they were not meeting the stringent performance requirements demanded by management.

Look for a learning experience.

Any 12 year old kid can put out a web site with stock picks nowadays. If you are a new investor, you may want to find a real service that will go that much further, providing you with ongoing e-mail guidance, learning articles, and handling your questions as they arise.

Beware of "Fire and Forget" newsletters.

"Fire and Forget" newsletters comprise approximately 85% to 90% of the services out there. They say, "Buy this stock" then you never hear about it again, especially if it does not perform well.

One of the best features of my service is our daily updates. Using new trading and corporate information, we update our site daily to give you the biggest penny stock advantage.

Picks! Picks! Picks! Losses! Losses! Losses!

Many services focus on quantity rather than quality. And, many people naively push the services to do so, wanting to get daily picks, or even several picks per day!

I pulled the following comment from the cliche closet: "You are only cheating yourself!" Want 15 picks a week? You are basically pressuring some person of questionable ability to come up with handfuls of ticker symbols, and you are sinking your money into them! This is not a profitable investment approach.

If you do not believe me, please go ahead right now and join a daily stock picking penny stock service. Here, try this one: pennystockadvisory.com. When you have come back in a few weeks, wiser and poorer, start reading again from this point.

Look for a service recognized by the media.

Who has been getting the interviews and radio appearances, and quotes in the paper? No service more so than ours , and there is a reason for that.

Unsolicited testimonials.

Unsolicited testimonials from people just like you are a great way to tell how happy people are with the service. The trick, of course, is knowing which are real and which were just made up to pad some guy's marketing for his questionable service. Can you tell which of these are true and which are false?

Which 2 Testimonials are Real?

A. Although right now I'm just getting the feel of your site without actually investing, in one day I already saw a 30% gain in XYBR. You also called this in an article 3 days ago. All I have to say is WOW! This makes me for the first time feel secure about taking some of your suggestions and investing in your picks. If only I signed up a week earlier. Thanks again and I will be writing to you soon.
B. I had been losing money before getting your help, and since then I have made back all of my losses, and then some!
C. I am up over 50% in my portfolio since taking your advice, and all three of the stocks I bought have gone up. Thanks, and keep up the good work.
D. Since subscribing in June my small portfolio has increased by around 1000% and I did not trade it for two months because of holidays.

Now, scroll down to the very bottom of this page for the answers!

The Truth Behind the Numbers.

It would be a mistake to base your decision on a track record alone. Firstly, past performance having little to do with future performance, but you already knew that.

Secondly, many good gain numbers are not applicable, especially those related to OTC stocks, because you probably can't sell them to take the gains anyway. (OTC stocks are easy to buy and very hard to sell, even if they rise in price).

Thirdly, the numbers may be made up or tweaked by the service. Yes, they do this, and you can report such practices to The New Sheriff In Town.

The real testimonials were A and D. They were sent to PennyStocks.com by members of the service.

The point is, it is nearly impossible to tell which are real and which are fake. That is why it is so important to protect yourself when looking into services on the internet or otherwise, especially those that deal with investments. Do not base your decision on testimonials or track record alone, but instead on several factors, such as those described in this article.

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