Penny Share Tips

penny share tips
Would you take Penny Sleuth’s share advice?

My friend is buying shares on this website’s advice. I told him not to be an idiot, they make their money from giving subscribers hot tips, that are not necessarily accurate, but he insists they know what they are talking about.

The Attraction Of Penny Stocks To Many Investors

* A small amount of money can control a large amount of stocks

* The low price and potential for rapid growth

* Because of the low stock prices, even small moves can result in huge percent profits

* Even though some Penny Stocks are thinly traded, others volume can reach several hundreds of millions of shares traded per day because of their cheap price.

Disadvantages Of Penny Stocks

* A large percentage of stocks listed on the Pink Sheets or the OTCBB are manipulated and traded fraudulently

* Lack of liquidity can cause huge volatility and also sometimes make it difficult to enter or exit a position.

* Lack of regulatory requirements and no minimum accounting standards make penny stocks much more vulnerable to manipulation and fraud.

* Pump and Dump schemes in thinly traded companies: Crooked traders buy the stocks low then tout the stock on bulletin boards, chat rooms, or other means as the latest “hot” stock.

As a result, they get others to run up the stock price – then they dump their own shares at huge profits.

Penny Share Tips

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