There are many risk factors associated with Penny stock investment, such as low visibility or low tradability; however the biggest risk for penny stock investors is free stock picks. They come by phone, through unsolicited e-mail, and by fax too. In many cases, a carefully crafted and fostered ‘rumor mill’ alerts you to a small cap stock through a friend or any other person.
It is a heartfelt advice for small cap stock investors that never buy stocks you heard about through an Email spam or phone call etc…..
One more precious advice is not to purchase picks from a FREE penny stock newsletter. In many situations the small cap stock issuing company may be paying people to promote their stock. They mislead you as to the forecast and potential of the company. If they were so first-class and strong company, why would they need to pay for investor awareness? Think about it…..
Biggest Risk for Penny Stock Investors: How to Overcome?? Dangerous causes of free stock picks include free penny stock newsletters, the rumor mill, and Email spam, stock promoting chat rooms, promotional web sites, and fax services. In all cases, the publisher either has a vested interest in the shares, or is getting salaried by the company to produce propaganda. So the single way to overcome the risk, must conduct a proper research regarding the issuing company and stock’s performance.
http://www.fastmovingstock.com/biggest-risk-for-penny-stock-investors/
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