Interested in using a penny stocks alert service? So was I. I suggest you read through my advice on how you should go about it:
The main reason why are looking for penny stock alerts is that you want to get good stock picks that could make you money, right?
Also you’ve learned that penny stocks can rise many 100-s of percentage points per day, enabling to earn a significant amount of moneys in a short amount of time, right?
Basically you want to get rich quick and penny stocks alert service could be the solution?
In this article, I’m going to show you whether this is actually possible and how you should go about it.
Different types of alert services
#1 Simple alerts
When you fire up the
Bruce allmighty Google and search for penny stock alerts, this is what you’ll find:
Seems promising, I know. Lets look into the first result that we got.
Ok so this is a typical simple penny stock alerts service.
What they do is ask for your e-mail and in return they’ll start sending you their penny stock picks, which they recommend to buy.
As you are looking for a get rich quick scheme (not you of course, but most other people :), this seems like a perfect site. It gives you free alerts of stocks that will make a lot of money if you buy based on their recommendations.
I think that you’ve figured it out by now from my skeptic tone that this is not the case. What these sites do really is separate you from your money.
These sites get paid for promoting various stocks that are actually worthless or close to it and the insiders want to get rid off. However as they only cost a few cents, the insiders wouldn’t be making any money from selling them.
What they do instead is pay promoters like “Ultimate Stock Alerts” there and many others to promote the price higher to sell at a bigger price and actually make a profit.
As you can read from their disclaimer (they have to be honest in their disclaimers in order to not get sued), when the promotion stops, the stocks will usually crash.
Also another piece of information from the disclaimer:
They honestly claim that the stock picks that they portray are being compensated for. And also that when investors use their alerts,
it is highy probable that the investor will lose most, if not all of his or her investment.
I hope you understand by now how these “alert services” work.
You should never put any money into these picks hoping that they’ll go up for good. What you can do instead (if you have the guts), is to trade them.
Penny stock trading is super risky, but can be highly profitable, if you know what you are doing.
Read on if you want to know more …
#2 Penny Stock Chat Rooms
There is a certain breed of traders that are constantly hunting for penny stocks on the move.
They trade when the promoters do a good job and the stock actually rises in price and once the promotion stops, the traders will exit and go short the stock to profit from the often drastic decline.
This strategy involves a great deal of risk, but can be highly profitable if done right.
There are specific premium chat rooms that provide information on how to trade these stocks and share information when someone finds a stock that is moving.
In a way, it is similar to the penny stock alert sites, although they are actually trying to make money off of these promoted stocks.
In addition to promotions, some penny stocks move because of actual positive or negative fundamental news as well.
The chat rooms combine hundreds of traders that are constantly in the lookout for potential plays and can help you spot a trade opportunity that you would otherwise miss.
A few chat rooms that I know to provide valuable penny stock alerts are:
Try them at your own risk, but be very careful when putting your money on the line.
There’s a lot of shady stuff happening in the world of day trading. Sharks of the industry are trying to eat newcomers’ accounts up alive. Always do thorough research before you put your money on the line.
Penny stocks are super interesting and lucrative to trade, but you really need to know what you’re doing. Put extra effort into educating yourself and start out with a demo account first to pay less tuition to the markets.