A free list of penny stocks is a list of companies put together by a
broker or another trader to help the investor to make his decision. It is
indeed an excellent reference tool, but since it is a free list, the website
carries no responsibility of its credibility. Free lists are often not as
reliable as the ones which take a fee. Other websites also give a selection of cheap stocks with names of companies and the gains, but they often ask for a
membership fee, which they require for their research and processing. For free
lists the website is dependent on volunteers to do the updating and editing of
the sites.
If you see a free penny stock list, it could just be a fraud that has
bought a large number of stocks and is persuading you to buy them, so that he
earns a profit. As soon as the value of the stock rises, he sells the stock at
once and with the fall of the stock you lose out on all your money. Looking for
a reliable free list of penny stocks involves meticulous research and a
considerable know-how of stocks and shares. Information is often available
about these lists on blogs or forums.
Sometimes a penny stocks picks are available if the investor has
subscribes to a certain newsletter or a broker. Then the database of the small cap shares is made free for the members. The available shares is based on a number of
factors like the investor and his awareness, all the news available about the
companies, the profits already made by the company and a general research of
the company. There are suggestions made on the future gains based on the
company’s record. Sometimes partial lists are offered which are free. There are
sites like OnlineStocks or Penny Stock Insider and it is quite safe to
trade online. Some sites which do not offer a free list of penny stocks will at
least direct you to another website which will provide the information that you
need. What you also need are some research tips or advice and most of these
sites give one or the other, so browsing for lists will also get you other
information about trading, which you require.
Since penny stocks are from small and new companies it is difficult to
do research on them, as not much information is available in the market. If you
are already an investor in the big stock market and have a broker to handle
your investments, it is often possible to get a free list of penny stocks from
him. If your broker does not deal in penny stocks, which may be the case, you
may have to pay for the list. Otherwise he can then recommend a reliable broker
for you, which is a hard thing to get.
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