Already on ArticleSlash?

Forgot your password? Sign Up

Experts And Hurt Investors Warn Against Sham Penny Stock Pick Advisory Services

 


Visitors: 285

For any first timer who wants to taste success in the stock market, best stock picks have become the favorite bet these days. Since these stocks are incredibly low priced (mostly below $5 per share), they have emerged as the hottest bait for luring innocent investors. Although they are a very good investment option, hurt investors warn inexperienced investors against falling prey to the penny stock frauds. Seeing the hugely growing interest in stocks among people in general, an increasing number of fraudulent penny stock pick agencies have swindled innocent investors out of thousands of dollars, taking advantage of their lack of experience and knowledge.

These agencies pose as financial experts and lure people to invest in huge volumes of shares, using the fact that penny stocks are extremely low-priced as bait. By recounting impressive success stories of more than 100% returns in penny stocks, these frauds make inexperienced first-time investors to put huge money in the best stock picks suggested by them. Experts plead inexperienced investors who intend to earn money by stocks, to understand that investment in stocks requires in-depth research.

Most free penny picks out there are false claims made with little or no background research. Although there are many success stories that are true, many a times they are simple flukes that malicious people quote to impress inexperienced people. The penny stock market has faced many scams recently and it is the result of some people posing as financial advisors and fooling investors with best stock picks. Since the penny stocks are most lucrative, they have been subject to most frauds. It is strongly advised that new investors do upfront research of their own before investing in stocks rather than under the influence of some free penny picks. For any kind of investment, professional advice is needed, therefore, investors should subscribe for a credible penny stock pick advisory service.

However, before making any kind of investment, it is strongly suggested that investors study the stock pick advice for a few weeks. This way they will be better able to judge the credibility and accuracy of the stock picks and identify any fraudulent advice. Penny stocks are most prone to stock dilution scams, which is all the more reason why an investor needs to be very careful before investing in them.

It is very easy to act under greed in this case, because one can buy large volumes of penny stocks in the expectation of multiplying profits. However, like any other good thing, patience is of essence here. It is imperative that inexperienced investors do thorough analysis before investing in penny stocks.

Investing your lifes savings blindly under the wrong influence is like throwing your hard-earned money away.

(461)

Article Source:


 
Rate this Article: 
 
How to Pick Penny Stocks - Pick Profitable Penny Stocks Today
Rated 4 / 5
based on 5 votes
ArticleSlash

Related Articles:

Four Reasons Why Some Investors Opt To Trade Penny Stock

by: Malcolm Torren (March 11, 2008) 
(Investing/Stocks)

Confident Investors Boost Penny Stock Index

by: John Whitefoot (March 28, 2007) 
(Finance)

Here's How to Pick a Penny Stock That Can Make You Some Serious Money!

by: Grant Dougan (January 11, 2009) 
(Investing/Stocks)

Paul's Stock Pick Advisory For The Week of July 16TH Through July 20th

by: N. Paul Johnson (July 14, 2007) 
(Finance/Stocks Mutual Funds)

Paul's Stock Pick Advisory For The Week of July 9th Through July 13th

by: N. Paul Johnson (July 08, 2007) 
(Finance/Stocks Mutual Funds)

Hot Tips on How to Pick The Best Penny Stock Broker - A Quick Comparison

by: Janet Brooks (December 02, 2007) 
(Investing/Stocks)

Penny Stock Market Software - Making Penny Stock Trading Easy

by: Gilbert Stockton (September 21, 2008) 
(Investing/Stocks)

Penny Stock Newsletter - 10 Benefits of a Penny Stock Newsletter - Get Hot ..

by: C. J. Burke (August 14, 2008) 
(Investing/Stocks)

How to Invest in Penny Stock- Wise Investing in Penny Stock

by: Star Smith (June 16, 2007) 
(Finance)

How to Pick Penny Stocks - Pick Profitable Penny Stocks Today

by: Michael Pergrem (August 22, 2008) 
(Investing/Stocks)