I'm not sure exactly how long you have been researching or trading penny/microcap stocks...
But what you will come to realize if you survive this game long enough is that there are alot of shady things associated with penny stocks.
I don't want to cover every aspect, but I do want to let you know that most penny stock promoters (newsletters) do not have your best interest in mind.
Ok, enough beating around the bush...
Here's what 99% of other penny stock newsletters would never tell you in any situation regardless of the consequences for them or you...
· Promoters are compensated with cash and
and free shares of the companies they promote.
Just when a stock gains momentum, they dump their shares with disregard as to how low it will drive the stock price.
· Couple that with the fact that the featured company will also be feverishly dumping shares (to raise capital) into all the buying volume....and you have a disaster on your hands for most regular folks who purchased shares with their hard earned money.
Promoters must include the details of compensation in a disclaimer, but it is usually not very visibly prominent.
· People that buy the stock featured by the "penny stock newsletter" or "promoter" suffer such a big loss initially that most just hold for a while hoping for the stock to bounce back.
However in the vast majority of "paid promos" for penny stocks they never fully recover. It's not uncommon for these unfortunate souls to sell for over a 90% loss.
....I know people personally who have lost over 100k on one penny stock... yikes, right?
Now there are a few promoted stocks that do hold decent gains for a while, but they are very tricky to spot...if you like to read filings you can get a knack for that...but it's still tough to decipher the intentions of the people behind a paid promo, whom most of the time do not give a crapola about the people buying the stock.
**When in doubt a penny stock promotion, hunt down the specifics in the disclaimer...
Now I didn't cover every aspect of the shadiness involved with penny stocks...
But you now know that the bottom line with a penny stock promo is not to provide value to investors. It is to raise capital through massive selling which obliterates stock value.
I never have and never will do a "paid promo" for any stock whatsoever.
That is my word, and I stand firm on this committment.
Does that mean all of my penny stock picks will be dynamite? Course not...
But most of my picks do offer my members plenty of opportunities to sell for more money than they invested in them.
Simple as that. :-)
Of course I do send some of my picks out to non-paid members, but not nearly as many as paid members...
So whether you become a paid member or not,rest assured I will never ever send a stock pick that I am compensated to recommend.
If I pick a stock, it's because I believe there is a strong chance you will be able to sell it for more than you paid for it.
Well I really hope you were able to sharpen your awareness on penny stocks with this info...
Too many people are still learning this stuff the hard way. :-(
Later,
Matt
P.S. Believe it or not there are some penny stock newsletters that charge for membership and STILL send out nothing but paid stock promotions to their members. Really ticks me off to see people getting hosed like that!
If you’re still interested in becoming a paid member
to my newsletter, there are still a few openings at $49
a month. I work my butt off to make it worth every cent
to my subscribers...so I encourage you to give it a shot.
Disclaimer: Never invest money in microcap stocks that you can't afford to lose. These stock are very volatile and gain and lose value quickly. We are not compensated by any mentioned companies. We recommend stocks based on instrinsic value only. We are not registered investment advisors, so always do you own research before buying any recommended stock.
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