| You are probably looking to make big money by | | | | who gain big profits by selling their shares after |
| investing in penny stocks, right? Well, there are | | | | the penny stock price increases because of the |
| some things you should know before you do that. | | | | buying frenzy they create. Once these imposters |
| These 3 tips will help you make more money and | | | | sell their shares and stop pumping-up the stock, |
| decrease the risk of penny stock investments. | | | | the price falls, and you lose your money. Message |
| 1st Tip: Knowledge is Power - In penny stocks, | | | | board postings, unsolicited e-mails, and company |
| that translate to money! | | | | news releases should never be used as the sole |
| Information is your best tool when it comes to | | | | basis for your investment decisions. |
| investing smart. Accurate information about | | | | 3rd Tip: How to find the next Penny stock? |
| penny stock companies may be difficult to find. | | | | Well, most investors find out about penny stocks |
| There are several ways to find quality | | | | through some sort of penny stock newsletter, |
| information. But, the easiest way would be to | | | | penny stock screener or subscription service. |
| visit your local public library. There you will find | | | | With everything, there are good companies and |
| reference materials and commercial databases | | | | poor ones. Having invested in the stock market |
| containing information about companies. You can | | | | for over 12 years, I know how to spot the good |
| get information about the company's history, | | | | services from the bad. First and foremost, they |
| products, services, revenue, management, and | | | | should offer a money back guarantee. That |
| credit ratings. Here are names of a few of these | | | | way you can subscribe, and track the |
| resources, Lexis-Nexis, Bloomberg, Hoover's | | | | investments. In other words, trade on paper |
| Profiles, and Dun & Bradstreet. | | | | with their picks and see how they perform. |
| 2nd Tip: Penny Stock Message Boards - The | | | | I personally use a penny stock newsletter to get |
| Classic "Pump and Dump" Scheme | | | | my stock picks. You might want to look into |
| You often see messages posted on the Internet | | | | using them as well. You can click here for more |
| with penny stock prices that urge people to buy a | | | | information. They really help in taking the risk |
| stock quickly. The person will claim to have "inside" | | | | out of investing, especially for people who do not |
| information about a penny stock. In reality, they | | | | have the experience or time needed. |
| may be a company employees or paid promoters | | | | |