Where Can You Find Honest Penny Stock Advice?
One of the biggest challenges faced by investors and speculator who are new to the penny stock market is finding good sources of information and advice. You need to keep in mind that penny stocks are typically associated with companies whose future is a bit more speculative than those of larger established firms. For example, a company that’s listed on the New York Stock Exchange and that’s part of the Dow Jones Industrial Average will have dozens of major brokerage firms “following” it, regularly issuing research reports about the company and their financial performance. By contrast, a company based out of a small town in California that has 4 employees and that hardly anyone has heard of will not be getting the same kind of attention. So what’s an investor to do?
The most honest source of penny stock advice is going to come from two sources. The first source will be from the so-called “stock touts” who try to build up interest in a penny stock. You might be shaking your head and thinking to yourself that this is insane advice, that you’d never want to listen what these people are saying. What you need to keep in mind is that the only way a stock — any stock — goes up is when people buy shares. In the penny stock world, companies often live in complete obscurity. If nobody has ever heard about a particular company, it doesn’t matter how wonderful they might be, the stock will not move. So the first step is to see what penny stocks are being promoted and touted. Those are the stocks that are getting attention.
Next, you need to thin your list of potential investments by evaluating the underlying fundamentals of each company that is being touted. Can’t find recent audited financial statements? The move on, you don’t want to invest in that company no matter what the promoter is saying. When you find a company whose underlying financial statements look good, you may have found the perfect penny stock to buy.
In other words, the most honest penny stock advice you can get will usually come from those who promote penny stocks on a full-time basis as well as by doing a little bit of financial detective work of your own.
What is the easiest way to trade penny stocks:
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