Every time you visit a Penny Stock recommendation site, you would see a list of stocks that have grown 300% since they recommended. I could make a list anyday.
Those lists are as good a quack medicine for AIDS. No doubt that there are hundreds of thousands of stocks that have shot up 300-400% even in the past one week, but did they really recommended those?
If yes, how many stocks did they recommend? If they recommended a 100 stocks and only 20 stocks shot past the 100% mark, what need would that list have been to you? If I picked 200 stocks that are all in the electric cars market today, some of them are bound to shot up soon. The trick is in knowing which? Does this penny stock guru know which?
The trick in choosing the best penny stock recommendation site is this:
To make some money in the Stock Market, you don't need to be right all the times.
You just need to be right 51% times, and as long as you have strict stop loss, you will always make make at 51% correct prediction.
Ditto for the Gurus, if they can predict more than 50% times correct, then that is a Penny Stock List that you can follow.
Join a newsletter or a site for one month, and study the movement of its stocks.
One more thing about these lists is that if the site has too many subscribers, prices tend to go up the first few days of the recommendation just because all his subscribers are buying. Beware of that.
The reason I love these penny stock lists is that you can make a few bucks if you can get the list fast enough.
And if the list is small enough. Don't expect a make a lot of money though.
Penny stocks don't tend to have a Huge volume, and there are Automated traders who waiting to offload his stock once there is some volume.
Even the price of STK goes up from .30 to .60 overnight, i's 100% gain could have been on a volume of just 10000 stocks.
That is just 3000 dollars between all the traders.
Don't trust that Penny Stock list blindly.
Enter Fast and Exit fast.
I once had a moderately volume stock that went from .5 to 80 bucks, and I rode the train, but I entered and exited more than 10 times. I would have made a lot more if I stuck to it, but I followed my strategy. You must always exit.
Godspeed.
