How To Find A Good Penny Stocks Picking Service
Investing in penny stocks is a very risky venture. While some people have become overnight millionaires playing the penny stock market, the vast majority will likely end up losing their money. To help navigate the rough penny stock waters, there are professional penny stock picking services available. How do you find a good penny stocks picking service?
First, be wary of any services, online or offline, that offer good penny stocks tips for free. In almost all cases, these companies are receiving some sort of incentive to promote the penny stocks they list. Companies that need to pay stock-picking services to promote their stock probably aren’t the types of companies you should be investing in. You might come across some kind of report that extols the virtues of the company, be it a technological breakthrough or a new money- and time-saving device. Chances are, if their claims were true, you would have heard about them through normal media channels, and not through some paid advertorial.
Second, research the professionalism of your stock-picking service. A good penny stocks picking service will respond to your inquiries right away. They will employ good and knowledgeable representatives who can answer many of your questions. Ask questions of at least three different service firms and see how they respond to you. Keep in mind that the fastest to respond isn’t always the best. It’s a combination of speed and quality that you should rate.
Third, find out how many people work for the firm. A good penny stocks picking service goes beyond the one-man show. A self-employed consultant cannot terminate his own employment when he makes a blunder. Further, many don’t even have a background in financial services. They might have been salespeople or marketers in their former exploits. Professional firms, on the other hand, employ a professional research staff. If any one of them makes a blunder, they can be terminated. Your money deserves professional treatment. You should not want to entrust your investment dollars on a hobbyist.
Fourth, a good stock-picking firm goes beyond sheer numbers. Some firms will try to get as many stocks traded as possible in one day without regard to whether a good penny stock was picked. What’s worse is that the people who hire these types of firms get caught up in a trading frenzy, allowing for several trades per day. A good penny stocks picking firm will focus more on quality trades. In the end, it’s not the number of trades you make. It’s how much money you make regardless of how many trades you perform.
Last, look for unsolicited testimonials. A good penny stocks picking firm will have excellent references from satisfied customers. It’s often difficult to tell a real testimonial from one contrived, so exercise some diligence. After all, it’s your money.
