Can I get rich by following penny stock alerts?

[Sam Button]

[Justin Freeman]

Most people trade penny stocks because they see them as a way to make massive profits and perhaps even their fortune. When considering investing they inevitably come across penny stock alert or signal services and wonder if they can get rich by following them. If you’ve seen the ads for many of these services, you’ll think so, since many of them promise returns in the thousands of percent. It seems too good to be true, so is it? The marketing used by these services appeals to the greed in people, promising to shorten their learning curve, or the time it will take them to get rich. They sweeten this with the promise of handing the trades over, making the process of winning in the market as easy as can be. As you might guess, if it sounds too good to be true, it is! This may make it seem as if all penny stock alerts and signals are bad, but that’s not true. There are price discrepancies always arising in penny stocks, and there are penny stock signal services that are efficient at finding the situations and sharing them. These typically aren’t free services, but they aren’t scams either. They provide solid information that can be a good starting point for your own research. Taking the information from the alert and signal services and then analyzing the stock in question and doing your own research is the best way to profit from using these services. This method also helps you broaden your own knowledge, and soon you won’t even need the signal services because you’ll be able to find trading opportunities on your own. So, rather than using a penny stock alert or signal service to get rich, think of using these services to avoid scams, to educate yourself on how to locate good penny stocks, to improve your own knowledge, and to understand why a particular penny stock rises. Doing those things will build a solid foundation and once that’s in place the money is almost sure to follow.

[Becky]

Hi Sam,

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