10 Things to Know About Penny Stock NewslettersBefore getting involved with newsletters that pick penny stocks, be sure to give them a review just as you would before investing in a company's shares. Consider these ten points as you make your decision, and you will come a long way to protecting yourself and avoiding the scams.
1. Free Penny Stock Picks
Never under any circumstances should you follow a penny stock pick which you learned about for free. If you heard about it for free, it's almost certainly a bad investment idea.
The source of the information may be pumping and dumping, or be getting paid by the company they are touting. There are a lot of hidden motivations, and you can bet that someone is profiting be encouraging you to buy.
If it's a free tip, assume that it is a junk company being touted by a junk promoter. Great companies don't need to play these promotional games, so it's only the worst companies, or the worst promoters, who are giving you free penny stock picks.
2. Best Markets for Penny Stocks
Stick to the top markets for penny stocks, so you can be sure the companies' shares are in compliance with the regulatory framework.
Some of these better markets for penny stocks include NYSE, AMEX, and NASDAQ, as well as the OTC-BB.
Some penny stocks (sub $5) trade on NYSE, AMEX, and NASDAQ. Most of them can be found on the OTC-BB (the Over the Counter Bulletin Board, which is a subsidiary of the NASDAQ).
At Leeds Penny Stock we avoid, and you should also avoid, shares that trade on the pink sheet market.
3. No Free Trial? No Purchase!
There's usually only one reason why a penny stock website won't give you a free trial. If a penny stock site won't provide a free trial, it's because they don't want you to see that their service isn't worth buying.
Only get involved with penny stock websites that provide free trials, because their business plan is all about giving you enough to keep you as a subscriber. Don't get involved any penny stock service that won't give you a free trial.
4. The Best Newsletters Get Media Coverage
The media focuses on the best services and ignores all the bad or unprofessional ones. Think of the media as a 'screening' service, separating the good from the bad.
If they think you're good enough for an interview, then you'll get the coverage. Penny stock websites that get coverage from the media are enjoying the 'seal of approval' of their fact checkers.
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