| Investing your money wisely is something we all | | | | Free newsletters also tend to be bad news. If you're |
| aspire to do, but often times it is difficult to know | | | | not paying the guy giving the stock tips out, |
| exactly what the right move we should be making is. | | | | someone else probably is. My money is on the |
| For people with smaller nest eggs it can be even | | | | companies he's recommending that you buy, which |
| more difficult because the potential investment | | | | kind of calls into question whether or not they're |
| options are more limited. | | | | actually worth buying. |
| If you're starting off with $300,000 to invest there | | | | There are pay newsletters too, but not all of them |
| are many directions you can go and it's not that | | | | are good. It's entirely possible for the editor of a pay |
| difficult to find a financial adviser who can help you | | | | newsletter to be even slimier by charging his readers |
| for a reasonable fee. If you're just trying to get your | | | | up front and STILL taking money from companies on |
| feet beneath you though and you've got just $3,000 | | | | the back end to promote their stocks. On the other |
| to start with there's seemingly nowhere to turn. | | | | hand, it's also possible for a newsletter to be entirely |
| People find penny stock investing to be somewhat | | | | on the level, and their stock picker might just be |
| attractive because of the low price per share, but | | | | awful at his job. |
| there is also the higher risk factors and the lower | | | | So here are some things to look for: |
| level of information on companies you might be | | | | EXPERIENCE - You want to see a long history of |
| investing in. So, yes you can easily pick up several | | | | successful stock picks, along with unsolicited |
| thousand shares of ownership in a small business but | | | | testimonials on forums and such. Basically, you want |
| that doesn't mean it's the right move or that it will be | | | | to have a sense that these guys have been |
| the move that makes you some money. | | | | consistently doing a good job for their readers for a |
| Luckily there are a lot of resources online to help | | | | decent amount of time. |
| people who are looking to get started investing in | | | | SIZE MATTERS - You don't want to subscribe to |
| penny stocks. The online world of penny stock | | | | advice from a one man show, even if he's really |
| information is littered with pitfalls to, but it's not too | | | | good. If the guy who owns the newsletter or |
| hard to navigate as long as you keep a sharp eye | | | | website is the same as the guy who picks the |
| out and follow a couple of basic rules. | | | | stocks then if he falls off his game next week and |
| The first basic rule is to ignore any free tips you | | | | has a terrible next year he's still not very likely to fire |
| come across. This may seem counter-intuitive but it | | | | himself. |
| goes to the old saying: There's no such thing as a | | | | BACK TO SCHOOL - A stock picking service that |
| free lunch. In this case, most free penny stock tips | | | | helps you learn as you go by explaining why stocks |
| found (usually on forums or received through spam | | | | have been chosen is really good because it helps you |
| emails) on the internet are part of what's called a | | | | understand the market a little bit at a time, and after |
| "Pump and Dump" scam. | | | | a while you might just find yourself capable of some |
| A "Pump and Dump" scam is when someone buys a | | | | pretty good picks of your own! Services that |
| huge number of shares in a mostly worthless | | | | include an occasional article or other educational |
| company, then does their best to try and stir | | | | material are great too. |
| excitement to get other people to frenzy and jump | | | | CONTACT US - You want a stock picking service |
| on board. Once they do the price will start going up, | | | | you can get hold of and ask questions. Why not find |
| which will convince other people the tip is real so | | | | out up front where they're at by sending some |
| they will buy and drive the price up even further at | | | | emails to a bunch of services that look good (with |
| which point the scam artist will sell his huge number | | | | genuine questions you have about their service) and |
| of shares and the price will bottom out like nobody's | | | | seeing how they respond and how long it takes |
| business, leaving all the poor people who bought into | | | | them? |
| the tip that much poorer. | | | | |