Free Penny Stock Picks – What Hides Behind Word Free?
Ads for free penny stock picks cover the Internet but are these websites and chosen stocks legitimate or a big scam? The answer depends on many factors, and these include who is providing the stock tips, whether the source has any conflict in this advice, and what the reasoning is behind the chosen stocks as well as other relevant factors. Some full service brokers will offer daily penny stock picks to clients and these free lists are generally chosen on solid financial principles. A website that sends out mass emails advertising free investment advice and the guaranteed hot new penny stock should be avoided because the risk of a scam is very real. A legitimate investment website will publish the financial data and relevant information about the stock pick, and this is usually only offered to members of the site not to the general public.
Some free penny stock picks are a front for a common scam known as pump and dump, and most investors who buy the stock pick will end up with worthless paper. The scam works out well for the initial owner of the stock who walks away with a large profit while you watch the stock price drop and the liquidity for the stock dry up. It is important to research every potential investment when you are trying to find penny stocks, and never bet your money on any stock just because it was on a list or a certain analyst recommended it. Always find out everything you possibly can about the potential penny stocks, and then carefully compare your choices. This will help you avoid many of the scams out there and protect your investment capital.
Not all free penny stock picks are a bad idea, and these lists can be a terrific starting resource to find the right penny stocks for your specific portfolio. Make sure that you determine which underlying companies are solid and represent quality, and weed out any questionable companies that may seem shady or high risk. Because some free hot penny stock picks are solid choices and others are not worth the ink used to print the stock certificates you have to be careful during the stock evaluations. Some picks may be a bad choice because of the risks involved, others may not fit well with your investment goals or strategies, and still other penny stocks are substandard quality.
Free penny stock picks often require investors to sign up for a free membership or agree to receive a free newsletter, and this can be a marketing ploy to find interested individuals who may purchase other investment products from the company. Once the website has your email address you may start receiving offers about the inside tips, trading platforms, and other products from the website along with your free list of sub penny stock picks or other types of penny stocks. Some investors choose to set up a separate email account for trading activities so that any of these emails can be gone through at your own pace. Just because a website offers great picks in penny stocks for free does not mean that these lists come with no strings attached.