Penny stocks are characterized by values below $5, low liquidity, and market capitalization. Despite the reduced prices, their volatility comes in handy to attract investors. Unable to choose the right shares, some traders rely on leads from penny stock alerts.
Promises of outrageous returns aren’t easy to resist, especially for beginners wanting a market head start. The goal is earning massive profits without following individual tickers. The fact that some services guarantee hundreds of percent in gains free of charge raises eyebrows on their intentions.
In truth, the sites are promoting stocks the industry deems worthless. The ads are either sponsored or the alert platform owns stocks and has depleted their market supply. Even if the leads were accurate, they still deny you the opportunity to develop your analytical skills. Instead of expecting quick riches, use the signals as a foundation for your research