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Finding a Good Penny Stock Newsletter

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Penny Stock Newsletter

Judging a Penny Stock Newsletter

Penny stock newsletters offer a way for busy individual investors to drill down into the murky world of penny stock fundamentals without actually having to perform enormous amounts of research on their own. That is the general idea, at least in theory. However, thanks to the Internet, it is easy for a tout-for-hire to masquerade as a neutral observer without expending very much in the line of operating costs.

Of course there are reputable newsletters out there as well, but the trick is to figure out which is which. One of the best ways of doing so is to bookmark or archive the recommendations made by a candidate penny stock newsletter and then go back and check how those stocks have done after a period of several months. By doing this over an interval of time and making your own comparisons over their entire list of recommendations, it becomes possible to see which advisers are working for the companies they exalt, and which ones are actually interested in making you some money.

Naturally, every penny stock advisory is going to trumpet their amazing record of success. Very few investors will take the advice of someone who proudly proclaims a batting average of .004. This is why it is critical to do your own backtracking rather than take their word for it. It is also important to stay up on these recommendations on a continuing basis. Widespread publicity can lead to any stock receiving a bit of a temporary pop, which may well carry on for as long as the marketing campaign continues.

It is what happens to the stock after the force-feeding ceases that really matters. If the stock maintains its momentum, or at least its value, after it drops out of the limelight, it is probably worthy of consideration. If not, give it a pass and keep in mind which stock advisory letter thought it was such a good idea to invest in it.

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