May 22, 2012

Posted by in Penny Stock | 0 Comments

Best Damn Penny Stocks Are Still Risky Investments

Beware of anyone who tells you they have the best damn penny stocks in the world. Penny stocks are by their very nature extremely risky investments. They are generally very thinly traded and have a value of no more than $5.00 per share. Often, they are priced under $1.00 per share which is basically how they got their name.

How are the Best Damn Penny Stocks Presented to Investors?

Every investment firm or individual broker that deals in penny stocks must be a good marketer to be successful.  Investors like to hear a good story when considering these risky and volatile investments.  There are a number of methods used by savvy sellers of penny stocks.

You might receive a newsletter in the mail with a big, flashy headline that is designed to entice you to fork over your money and buy a few thousand shares of stock in a couple of little known start-up companies. The headline might read, “The 2 Best Damn Penny Stocks you Need to Buy Now!”

The headline might grab your attention momentarily, but by itself, it is not enough to make you want to invest.  That is where the actual story about each company must be presented in the most glowing manner.

Stories about the Best Damn Penny Stocks

By making a Company sound more attractive than it might actually be you can generate more investor interest. While someone writing a newsletter should never lie about the facts, they may omit some of the negative aspects of the Company they are trying to sell.

Most people know that you can present statistics in a way to bolster your case without actually telling a fib. Unfortunately, if an investor does not read the newsletter with a dose of healthy skepticism, they may be lured in to one of the “best damn penny stocks” that turns out to cost them everything they invested. As an adult with a mind of your own, you must do your own independent research by using other sources to investigate the Company you are considering.

While penny stocks are risky, they may be a suitable investment for the speculative portion of your portfolio. Do your homework before making a decision. If you are convinced that one of the best damn penny stocks might actually have potential, go ahead and make the investment.

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