Never trust another penny stock trader? Kind of harsh maybe? Well, please follow along.
When it comes to penny stocks, most everybody out there is there just to make money. They are not there to make friends, to provide free stop alert tips etc.. If you come across a trader that is trying to tell you to buy a penny stock, you should always think twice about it. You should ask yourself, why exactly is he asking me to buy this penny stock? Does this other person have good intentions behind his asking of me to purchase a penny stock? Or is it maybe, because this trader owns the stock that he is trying to tell you to buy so that he can go ahead and sell / offload his shares on you.
Well, it could really be either one of these things. Either they are being really nice and trying to help you make money too, or they are just in it to make a buck off of you. If I had to guess on which one of these reasons they are asking for you to purchase the stock, I would most definitely think that the latter, or the “they are trying to make money off me” reason is the valid one.
This page that you landed on here, has been created to shine some light on some of the different risks that one takes when they attempt to trade penny stocks that have been recommended by another trader. The information found here has been taken out of our Ultimate Guide on Penny Stock Trading.
Never Trust Another Penny Stock Trader
This TIP kind of goes along the same lines as the “never trust a penny stock marketing alert” TIP. Basically, if another Penny Stock trader is trying to get you to buy a penny stock, there is a very good chance that they stand to gain something from you purchasing this penny stock. They are either trying to sell you their shares of that penny stock, or they are perhaps a paid promoter that has been paid by the company or a 3rd party to bring awareness to a particular penny stock. The only way that you can really trade penny stocks successfully by working with another individual, is to join a group of penny stock traders. These groups of people all go in and buy the same penny stock and they wait for it to run (more on this later – via the Golden Penny Stock Tips).
There is a right way and a wrong way to do it. Don’t be the “wrong way person”. Please continue reading this extreme guide on how to invest in penny stocks for beginners for more great tips and ideas.
If you like the information presented to you here on this “Never Trust Another Penny Stock Trader” page, please go ahead and take a look at the ultimate guide on: How To Invest In Penny Stocks For Beginners.