Buy Penny Stocks
Are you looking to buy penny stocks? If you are, make sure you know the condition of the company before you buy any shares. Yes there are penny stocks out there that you can make a quick gain in a short period of time and in some cases, in just a few hours.
But where to go to find the latest hot stock to make money. Well there are many different websites that offer to send stock alerts to your e-mail. These websites are nothing but a bunch of penny stock chasers. These websites (not all of them) are known to use what is referred to as a “pump-n-dump. A practice that has been used for many decades, but that is for another post.
I’ve use some of these sites to do research on the accuracy of their picks. I’ve found that in most cases, stock stock in question will go up in value by more than 10% to 50%. The problem is that the price per share won’t stay there for long. The early investors who got in on the stock before the herd start selling their shares which in turn bring the price per share down trapping the average investor in the stock or having them take a loss.
If you’re able to be home or in the office watching the stock streamer all day, you can capitalize on the situation. If you’re not able to do that, I suggest you stay away from trading in these stocks.
If you’re looking to make money on the next big growth stock, you need to find the company that will bring the next best product to the market that the industry is looking for. Right now there are plenty of alternative energy companies out there that are just about to explode. Start doing research into many of these companies to see if they have what it takes to go to the next level. Once you do, build a position in the company’s stock. The buy-and-hold strategy will pay off in the long haul if your research is correct.
In my opinion, if you’re new to the stock market and don’t have a total grasp of it all (or at least most of it), I say stay away from trading or investing on penny stocks. You can make a lot of money, but you can lose just as much if not more of your capital.
Tags: alternative energy, alternative energy companies, buy and hold, Buy Penny Stocks, doing research, growth stock, hot stock, invest, investing, investor, investors, money, penny stock, Penny Stocks, stock chaser, stock chasers, Stock Market, stock streamer, tradingRelated posts
Penny Stock Picks
For some time, I’ve been doing research on many of these websites that offer you free e-mails that will inform you on buying penny stocks that will make you money. It’s amazing how many websites are out there that are doing that exact thing. But are they really helping anyone make any money with their penny stock picks?
Let’s start with the concept of someone giving you free advice on which stock to buy and when to buy it. What’s in it for them? That’s the first question that comes to mind when I think of these websites. If they send you free e-mails and don’t ask you for any money on return, then how do they make their money? To get one thing straight… getting a tip on a stock is not the way to play the stock market. You need to do your own research on the stock that you are looking to purchase. Don’t be what I refer to as being a penny stock chaser.
These websites are more designed to get others to buy into stocks that they’ve already set up a position in and are waiting for the “new” investors to jump on the band-wagon and cause the price to go up. When that happens, they will scale out of their position and leave those who are not as quick to get out before the price drops back to where it was.
In my research of these websites, I signed up for their e-mails and track how the stock moved. In many of these cases ( over 85%), I would never own or invest into any of these stocks. Their balance sheet and the financial reports of these companies did not look good. As a matter of fact, one company in particular WDAS.PK, was being hyped by three different websites. What did the stock do from the e-mails? What happened was unbelievable. The first alert was on Sunday Oct. 11th. Telling their subscribers to buy at $0.05, but when the stock opened on Monday it was at $.40. Updated alerts went on stating that the climb wasn’t over and to buy at $0.40 – $1.20 per share. I will say that those who timed it well, made a ton of money if they sold their shares around $1.85 – $2.00. It hit a high of $2.00 before closing at $1.85. In just two trading days it closed at $0.48.
During the entire 10 trading days from when they first talked about WDAS.PK, the stock went up and back down again to where the ride started at. As of this past Friday, Nov. 20th, it closed at $.20 per share. Was it good to “play” this stock tip? Only if you were able to watch the day to day activity of the stock, was it worth it. The stock came down a lot quicker than it went up. I’m sure many didn’t get out in time and suffer a loss.
My advice to you is to do your own research and not to take anyone’s advice at face value. Just because someone or some website says it good, doesn’t make it so. I know it may be harder to do research on companies that trade on the pink sheets because usually these companies don’t have analyst watching them. Some information is out there, but you have to watch for fluff articles that publicist put out to help boast interest in the company.
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