A genuine Hot Stocks List is a powerfully essential tool for the Extraordinary Investor.
Penny stock lists were briefly discussed under the topic Trading Risks, under the subtopic Stock List Scams I would venture to say that all free and cheap penny stocks lists are scams. You can usually tell if a penny stock list is a scam by researching some of the stocks on the list.
Some or all of the items on the below list indicate that a hot stocks list you own is likely a scam stock list.
Identifying characteristics of a Scam Stocks List
• contains many stocks that are very thinly traded
• contains stocks that have outdated stock symbols
• contains many Pink Sheets stocks
• contains stocks with very little history
• contains stocks that have trended up recently with the promise that they are going up far higher
• has stocks with less than a year of history traded on the OTC or a Stock Exchange
• product developments of companies underlying the stocks are made to appear exciting, but after further research you will find competing products are actually better and cost less.
• even the name, Hot Stocks List, sounds cheap and scammy.
If you find that most of the penny stocks on the list trended up 20% or more in share values within the past week to about 5 weeks ago, then they are likely pump-n-dump scams promoted to make you give your money to them by investing in the stocks.
The real money is made by pump-n-dump scam artists after they sucker you into buying their marketeer promoted stocks at inflated prices that are on the stock list you received from them.
The small price they may charge for the hot stocks list is a bonus for them and a lure for the investor. The investor thinks he is getting a good deal.
Many promoters will give the hot stocks list away for free when the customers provide their personal information and sign up for the marketeer news letters or promotional sites. That way the marketeers can sucker the investor pig out of his money in future marketing scams too.
Remember, investment pigs are followers and want the easy way out. They are greedy and they go to market to be slaughtered, butchered and consumed. Do your own research.
A Genuine fundamentally created hot stocks list can save a great deal of time sifting through thousands of penny stocks for stocks with great potential from those that are duds and scams.
Most every hot stocks list for sale is constructed quickly with stock screening software programs. Many of these screening programs you can purchase or use for free on some websites so you can create your own stock lists.
Internet brokers may also supply such software for you.
Specific parameters can be entered into such programs to screen for stocks. This can be accomplished in minutes.
Limitations of Stock Screening Software
Unfortunately, such software does not have the capacity to determine which stocks are duds, victims of scams, and which are high potential.
The benefits and limitations of stock screening software will be detailed in the next sub-topic called, Stock Screening Profitably.
On the OTC BB, over half of them are involved in scams or are duds, especially those stocks that are trading under $3. Many others are not high potentials. Obviously you want to find genuine high potential solid stocks that are trading under $3 if possible.
The Catch 22 of the hot stocks list . . .
• Most stock lists are scams,
• Stock Screening software cannot locate real penny stocks with high potential to explode in value
• Creating a stock list from scratch takes too long - would have to sift through thousands of stocks to find genuine high potential penny stocks from all the dud stocks
So what is an Extraordinary Investor to do?
Stock screening software can help you narrow the list down to the sector of stocks you desire to invest in at a particular share price.
In addition, if your stock screening software is able, you may screen for stocks in a particular sector, and at a certain price, that appear dead in the water, and trading at a near all time low.
Once you locate these types of stocks, you must do your fundamental research to find out the quality and potential of those stocks and their products in development.
More details on screening penny stocks for investment potential are discussed soon under the next sub topic: Stock Screening Profitably.
Finding manually fundamentally created penny stock lists that are up to date is difficult, and such lists will cost $300 to over $3000. But they do exist. And the price is small in comparison to the great rewards possible by trading stocks from such a hot stocks list. Such lists are precious.
Manually created Stock lists using fundamental data can be quite helpful because they can save a great deal of time sifting through thousands of stocks for those high potential winners. But the lists can't do all the work for you. . .
• Most importantly, you must verify each stock on the list, that they are (or still are) indeed real stocks with great potential. Everything changes in time - for better or for worse.
• If the hot stocks list is genuine, you are still going to have to study each stock on the list and thin out the list. You want to target those stocks you feel are extreme bargains for the near future based on all available news and information. Some of the stocks on the list may have gone bankrupt or were delisted, or may soon do so. Keep in mind penny stocks depend on credit and financing to exist and continue research.
• The hot stocks list may consist mostly of super high potential stocks, but again, much can happen to a stock from the time the list is made until the time you buy the list for your own use. Nothing ever remains constant in life - everything changes over time.
• You still have to locate those stocks on the list that may be ripe to sky rocket soon. Other penny stocks you may select as potentials for later on.
• Still other stocks on the list may have already turned into rocket stocks. Since penny stocks normally cycle up and down, you might hold these stocks for a future plunge in price maybe three months into the future. Monitor them for future investment potential.
• You must still complete your own fundamental research and good basic technical research to determine which stocks are still relevant high potentials, and which may be high potentials in the future.
Researching high potential stocks is highly time consuming for the first year or two. But once the research is far underway, you are now becoming an expert in the sector of stocks you have chosen to invest in. You will:
• understand how such stocks operate
• learn specifically what to look for that makes these stocks potential explosive trending stocks
• be able to create organized lists of penny stocks to follow for future investment opportunities
• possess a hot stocks list for imminent investment potential - stocks containing genuine stocks with rocket stock potential. By doing this, you will not have to continue the long hours of fundamental study you once did when locating, screening and investigating stocks to place on your list.
• Once you possess lists of high quality penny stocks, you can invest in those stocks repeatedly as they cycle up and down in share prices. For instance, after you make good profit on a quality high potential penny stock by buying low and selling high, you can keep those great stocks on another list of stocks you are waiting to invest in again as those stock's prices plunge in value perhaps months later.
• become very experienced at screening and studying stocks making future screenings faster and more efficient.
Clever Stock Screening Shortcuts
I will show shortcuts to overcoming the obstacles when screening stocks and finding a hot stocks list that is genuine.
Some amazing shortcuts are discussed under the Blue Button. Within that report you will discover extraordinary tips and a surprise for screening stocks as an extraordinary investor. But as you may have noticed, I give all the knowledge you require to screen stocks and create a stock list of your own for free on this site.
Information on everything is available on this site so your mind is prepared when that time comes to press the Blue Button.
Keep in mind though, that pressing the Blue Button is not essential to become an extraordinary investor. All the information this site is now providing you is adequate to prepare you to trade penny stocks with safety, and with consistently higher profits, and to become that extraordinary investor in time.
You have completed this sub-topic: Hot Stocks List.
Next Lesson subtopic is about How to screen for stocks for amazing profits. Very important reading!
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