Where Can You Find a Good Penny Stock Picker Or Penny Stock Newsletter?

What should you consider when you are looking to find a good penny stock picker? Some of them seem to charge an unbelievable amount of money, sometimes ranging over one thousand dollars for a subscription. On the other end of the extreme, you have some penny pickers who don’t charge a dime for their service. What really matters is results. Regardless of the price of a subscription, if a penny newsletter helps you to achieve 100% gains fairly frequently, it is definitely worth the price as long as the subscription fee is within reach for you.

Let’s look at some of the pros and cons of subscribing to a fee based penny/microcap newsletter.

Pros: The fact that someone is being held accountable to certain extent to provide quality penny/micro cap stock recommendations. If you sign for a service and receive nothing but stock picks that perform poorly, odds are you going to cancel that subscription and the newsletter owner will lose valuable revenue. You should also be able to get email support from the penny pick service since you have taken the step to pay for their service. Lastly and perhaps most importantly, the equity selections sent out by the service should be completely objective and without conflict of interest. They should not be compensated by any third party to recommend any particular company/stock.

Cons: Your risk can be two fold with a fee oriented penny picking service, since you are not only paying for a subscription, but you are also putting your trading money into their stock selections. This is where it is important to look for penny stock newsletters with solid cancellation and refund policies. It is a vexation to have to jump through hoops just to get a refund when you are dissatisfied with a particular newsletter. Also, sometimes a penny picker may become a little gun shy and fail to broadcast a pick after he or she makes a bad choice or two.

Secondly, let’s examine some good points and bad points of a totally free penny/micro cap newsletter.

Pros: It’s free! You don’t have to bother shelling out any money to get the picks. Most of the time all you have to do is sign up using your email address and first name.

Cons: Non-objectivity is the name of the game. Most penny recommendations that you receive will not be based off of independent opinion. Totally free penny services only offer equity selections due to the fact that they were compensated a large sum of money to promote a certain company’s common stock. This may not sound like a big deal to you initially, but I assure you it is a huge obstacle for you to overcome as a trader or investor in micro cap companies. Reason being that after the stock selection is broadcasted, insiders start dumping many thousands or even millions of shares into the face of the newly inspired buying during trading hours. This greatly disables the ability of the stock/equity to appreciate in value since the supply of shares has so dramatically increased in such a short period of time.

Conclusion: The obvious choice is to go for fee based penny stock picking newsletters. They give you the highest chance to succeed, since their motivation is to make you money from their stock picks. On the other hand, the motivation driving free penny selection services is totally contrary to your success as a trader. They only wish to draw in more novice investors so they can draw large compensation fees from company’s who need their stock promoted.

Not sure which penny stock newsletter to start with? Microcapmillionaires.com offers 3 free penny stock recommendations so you can try them out before you become a paid member. The fee is $49 a month if you decide to join.

Source by Matt P Morris

Spread the love

Leave a Reply

Your email address will not be published. Required fields are marked *