Stock list scams can subject a trader to serious trading risks.
About Stock Lists and Stock Picks on the internet
Stock lists and stock picks sent by newsletters or promoted on financial websites have the potential to be very helpful tools to quickly screen stocks with great potential.
If you decide you would like to try a penny stock list, or even a penny stock pick, be sure the source is reliable (a highly recommended source, or from someone you know and trust) and research every stock on the list yourself before investing in any of them.
Regarding hot penny stock picks - I am thinking all of them are scams. Such stock picks are emailed to you after the stock has trended up 25% or more.
If you monitor the stock pick over the next few days to a couple weeks, you will likely notice that the stock is tanking. If you had invested at that time, you would have lost.
The stock may go up again on more hype at a future time, but will eventually tank again.
Most hot stock picks are extremely nano-cap OTC - most likely pink sheets with very little history or details to research.
The rest of this page will deal with stock list scams.
As for stock picks, do not trust them at all unless you get them from a source you would be willing to die for.
How to find good Stock Lists
The reliable stock lists are expensive, but that doesn't mean that scam stock lists are not expensive as well.
Some marketeers are extremely skillful and can actually hypnotize people into coughing up a couple thousand dollars for sham stock lists. Such lists are known as stock list scams.
Such lists fall into two categories:
1. contain stocks that marketeers are promoting so they can profit off of you when you trade in their scam promoted stocks.
2. contain poor quality screened stocks that may also be very old. They are sold to make money from you, not to help you.
Penny Stock List Scams
Penny stock list scams are promoted everywhere on the internet.
I do not use other company's stock lists because I cannot be sure if they are genuine fundamentally produced stock lists and picks. I can not be sure how old they are.
I rely on my own team to construct a general stock list of almost 200 genuine high potential developmental biotech stocks using my specific instructions or specifications for choosing stocks. Note that biotech stocks are my specialty.
After my team develops the list, I screen them over and over until I come up with 50 of the best stocks. Then I eventually weed the list down to 5 to 15 stocks that I feel have the greatest potential to explode very soon and watch them for the best time to invest.
Many scam stocks for scam stock lists
Keep in mind that well over 1/2 of all US listed penny stocks under $3.00 on the OTC BB are duds or victims of penny stock list scams.
Even so, I would say that about 20% to 30% of the marketeer promoted stocks represent good companies with exciting products in development. Such companies are easier to promote. Such stocks may be sleepers that require marketeer promotions to garner investor interest.
Why are marketeer promotions required?
Marketeer promotions are required because, as good as the companies may be,
1) most investors do not recognize them until they gain media attention.
2) investors and stock traders provide the capital required for penny stocks to continue operations while they develop products. Remember, most developmental stocks are not yet making a profit; rather, they are going into debt to pay for product development.
Never buy into a stock on a penny list that has already trended up with the promise that it will go much higher. Most likely, it won't go much higher if at all and you will be stuck holding shares at inflated prices. What stock you are likely viewing is part of a penny stock list scam - you are the proud owner of a marketeer stock list.
You will learn to spot exceptional stocks that are potential targets of marketeer promoters.
Once you find, study, and invest in such stocks, they will eventually explode in value on the marketeer buying and promotions - and it won't take long. . .
As much as 3 months, maybe more, may go by before marketeers take serious notice of a good undervalued penny stock and target it for investment and promotion. Once you are invested in a solid high potential sleeper penny stock, wait and let the marketeers bring the money to you through their pump and dump campaigns.
Once you target, screen, study and then invest in a high potential stock, then be confident in your research. Be Patient!
Don't be anxious or unnerved if the stock you are invested in does not explode in value right away, or even if the stock trends down temporarily. Be confident in the research you did and are continuing to do. Be confident that the stock you chose and are monitoring is exceptional, and will go up making you a handsome profit.
I will tell you this:
Too many times after doing thorough research of a high potential stock and investing in it, the stock price will go down a bit, and may go up and down several times.
Too many times, investors that are in a good stock like that will get cold feet and sell just before it rockets 30% or more.
Remember this lesson. . .
Once you do all the research of a target stock like this site will show you, then you have no reason at all to be afraid, but always continue to monitor for changes in fundamentals. In this way, you provide your mind enough information to accurately reflect on the stock, and to predict a future outcome, and form good strategies of action.
The stock may go down 15%, but don't sell! This type of trading action is common just before a stock rockets to new heights. Don't let all that research be in vein; rather, be prepared to receive the take home pay in due time - the stock must explode, and soon.
You have completed this lesson on penny stock list scams.
When you are ready, please continue onto the next lesson.
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