Posted on 23 August 2012.
Those who engage in trading penny stock news are aware that the information offered is often quickly superseded by events. In other words, the movements in any penny stock are such that profits are won and lost in a matter of hours, or days at the most. Investors simply must stay on top of penny stock movements at all times, or else they should seek out an asset class with less need of instantaneous information.
In addition to these pitfalls of rapidity, there is also the lurking danger of self-interest. Many so-called purveyors of trading penny stock news actually have some sort of financial interest in the assets they are recommending. In consequence, it is important to obtain information from a penny stock watcher who has been in business for a long time and has some sort of track record to back up their assessments.
The aptly named Global Penny Stocks (www.pennystocks.com) touts its list of recommendations from such financial information powerhouses as Forbes and Barron’s. The company keeps its picks hidden behind a subscription-only wall, but this is probably a good thing. Having a discernible revenue source means that it is less likely to be a paid agent of the stocks it recommends.
StockReads.com (www.stockreads.com) offers a somewhat different take on selecting penny stocks. It polls the major penny stock newsletters and then watches the performance of the companies that receive recommendations. Following along for a while allows the individual investor to get a handle on who is really providing useful advice and who is touting the dead cats of the penny stock world.
No matter what sort of trading penny stock news is used to gain insight, the usual caveats of trading in high volatility investments apply.
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