Have you ever received an email, text or a phone call from somebody promoting a penny stock promising you the world? If your answer is yes, you definitely would not be the first. So what would you do with such promotional material once you receive it? Should you buy a penny stock promotion? This is what this page is here to answer.
The information that you will find below has been taken directly out of our Ultimate Guide on Penny Stock Trading.
Should You Buy a Penny Stock Promotion?
Feeling lucky? Received a cool tip through your email, social media or a phone call on a stock that you should absolutely buy? Thing again. There is a reason why you are getting this email. When it comes to stock trading alerts and promotions, they are happening for a reason. Somebody is trying to bring awareness to a stock. And usually, it is not for good reasons. In fact, most of the time; you will be receiving some type of an alert telling you to buy a stock because somebody has pre-loaded the penny stock. It is either a private party, or a group of people that pre-loaded the penny stock, or it is the actual company that is trying to sell you shares. And guess what, most of the time, they are not selling you shares because they want you to make money with them or because it is a good investment. No, chances are that they are trying to sell you these shares that they have provided a third party in form of a payment for a service that they might have provided to the penny stock company. And now, in order for this third party to receive payment for their service or work performed, they will need to sell the shares that they received as payment. And wait for it… it is to you that they are trying to sell these shares. These types of 3rd party payment shares are called notes. I will elaborate on this all more later in much more detail (via the Golden Penny Stock Tips).
With all of this said though, is there a way to make money of a penny stock that is currently being promoted? Well yes, there actually is. If you can catch the run early on when the alert is new and fresh (after checking some technical signals and technical indicators for this penny stock), then there is a chance that you might be able to get some gains out of it. But don’t count on this being an easy thing to figure out. You need to be a seasoned trader and a well versed in stock knowledge individual to pull this one off. I will elaborate on this all a bit later (via the Golden Penny Stock Tips) as well, so continue on reading.
If you like the information found here on this page on the topic of “Should You Buy a Penny Stock Promotion“, please visit our Penny Stock guide at this link here: How To Invest In Penny Stocks For Beginners.