Penny Stocks Forum Warning
What could be better than skipping on over to a penny stocks forum to hear about some penny stock that will make you more money than ever—before anyone else knows about it of course. But wait a minute. Are these penny stocks forums really gold mines full of hot penny stock picks or are they capital bear traps?
Over the years I’ve visited many investing message boards from every corner of the Internet. There’s been the traditional Yahoo boards, MSN boards and all the little sites too.
Penny Stocks Forums Warning
These penny stocks forums all have one thing in common—lots and lots of wrong, false, misleading and garbage info.
Does that mean every post on every investing forum is wrong? Of course not. I’m just trying to give you a little warning before you go jumping in the deep end. I can honestly say that of all the money I’ve made in penny stocks, not one cent of profit was due to a penny stock message board.
Extra Warning: Penny Stocks Forum Scams
Please do be careful when reading the forums out there. Many “pump n dump” scam artists live in these places.
Always, and I mean always, do actual research on any company you become aware of. The reasons why these scams always work are:
- Greed. People think they will make lots of money and leave caution behind them.
- Blindness. Many people trade penny stocks often without knowing much about anything. This is extremely risky.
- Fake testimonials. As part of the scam, you’ll hear from all sorts of people how you should just buy stock in a company before it’s too late. In fact, scam artists can take a great deal of time setting things up (gaining high posts counts, established members in a community, etc).
At the end of the day, all I’m saying is that if you’re going to spend time on a penny stock message board that’s fine. Just don’t ever throw caution to the wind. While a penny stocks forum can be great places to get ideas, you still must always research and validate those ideas before invested in them.
