The idea of making money from penny stocks has really taken hold, and as a result there a lots of penny stock newsletters to choose from. So are they a waste of time…? It would be easy to say that it depends on the magazine, but that’s simply stating the obvious, so it’s worth delving a little deeper into what the newsletters offer, and why they may or may not be useful.
The appeal behind penny shares, is that a small rise in value of pennies can represent a huge rise in value in percentage terms. Therefore if you buy a lot of them, you will make a lot of money. All well and good, but there is an obvious downside – a small drop in value in pennies can represent a huge drop in value percentage terms. This can mean trouble if you have bought a lot of them, and your investment can literally disappear in front of your eyes.
If you are prepared to take this risk on board, penny shares offer some great potential, but there are thousands to choose from, so where do you start? You could buy one of the many systems available, but this still means having to do the research and track the prices yourself.
Or, you could subscribe to a penny stock newsletter. What these do is provide the stocks for you that look like good investments.
There are so many to choose from, and some offer great value while others are no more than rip offs.
The rip offs will simply copy information from other services, often free ones, so they are not actually offering you anything of value, and in fact the information they do give will usually be out of date.
When looking for a good newsletter, you want to pick one that has its own method of picking stocks, a reason to differentiate itself from the others. It also needs to be able to show examples, and testimonials from customers. If the newsletter you are considering does not offer both of those features, move on to the next one, and don’t look back!
This simple advice will set you on the
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