Tuesday 26 July 2011

Top & Hottest Penny Stocks can be Measured at Wallstreet

The promoters of Penny Stocks Alerts always pitch these stocks as if these are really very valuable, and the money invested will change the fortunes of the investor. Since the capital required is very less the common man gets attracted and enters into the high risk investment zone. The investor does not realize that this might be a scam to lure people to invest in these high risk stocks. Thanks to scams which is engulfing entire world at an alarming rate.

You probably will get a mail, phone call or messages on your cell phone, with an attractive content to invest in the Top stocks. You must remember that if the stock is good, even if the price is low, the company will never approach the individual investor for the investment. This does not necessarily mean that all Penny Stocks are bad investment, yes if you are a good analyst and have done your home work properly; you can definitely choose the best stock market today, which unfortunately are two out of each hundred.

The main comparison between good Penny Stocks and bad stocks is the listing of these stocks in the major stock exchange, the volume turnover per day and the history of the stocks for the last three months. The stock news where the volume is very high and the average transaction history is good can be considered excellent picks. The present day blue chip companies also came into this group once; today these stocks rule the stock market.

Whenever you decide to enter the market of Penny Stocks, you must take an expert opinion from a reputed broker, though the fee may be high, but it is worth it. A good broker will never advise you to invest in those Penny Stock Newsletters, where there is chance of total loss, as they are more worried about their reputation. Smart investors, who buy these stocks, wait for an opportunity to sell the stocks, when the stocks have given them sufficient returns. They normally do not sell the entire lot but keep 50% with them. This ensures that they have recovered their capital plus some profit.

Never ever believe the rumors as these are simply scams, normally people who are behind these scams have a big edge over those who buy on the hype. They are fully aware how long to keep these scams live. The prices of these stocks enhance multi-fold initially for few days and people retain these stocks with a hope of more appreciation of the prices, but what happens next is that once the scam period is over, the Top stocks are not found on the stock exchanges.

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