Posted on 17 August 2012.
It is always important to look at any penny stock forum with a bit of suspicion. Even paid forums can be home to individuals who want to do nothing more than pump and dump a stock and the general lack of regulation can make any forum a scary place to visit. Even with this said, though, there are many forums that are incredibly useful for traders. If you are willing to take the time to learn about the basic warning signs of a bad forum, you can make use of the often-valuable information found in legitimate forums.
A penny stock forum, like any other internet forum, is a message board on which various users can share information. Most penny stock forums are used to share basic information instead of stock tips – after all, most users do not want to give away their secrets. These forums can be full of valuable information for new traders, especially if those traders are trying to get off the ground on their own. There are warning signs that should be followed when considering any tips, though, and failure to do so can lead to loss.
The first question to be asked should always be about why information is being shared. If a certain user seems to be pushing a stock, it is quite likely that he or she is trying to inflate its value artificially. The same can be asked of any information that would drive a stock’s price down – after all, there is profit to be made by driving down the price of an expensive stock. You should also ask yourself whether you could trust forum members to be experts. Posting on a penny stock forum does not make one right, so it is always wise to look for evidence that corroborates a statement.
If you are willing to look for a good forum, you can find goo information. Always take what you see with a grain of salt, and make sure that you always look for more information. A penny stock forum is only as good as its members, and good members know that there is no such thing as free information.
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