You probably already know that there are a LOT of penny stock newsletters out there. Once you start comparing them is likely to leave your head spinning. The irony of this situation is that we want choices but not too many choices. Ideally we should be able to limit our choices to 2-3 and then pick one.
Now, how do we start filtering ALL of those newsletters. Start by making a list of things that you are looking for. The following is a good place to begin:
It’s important to look for newsletters that offer access to training or learning resources about penny stock investing and/or investing in general. Investing is an art and a science. The fundamentals remain the same but you always find something new to learn. Ideally the newsletter that you choose should cater to all the levels of investing. Some publishers work best for intermediate or advanced investors while others are best for newbies. Keeping in mind what your knowledge level is choose the right subscription for your needs.
Some investors need a lot of support while others don’t need to much. Once again, it’s important to know your own approach. Its almost always nicer to have access to some sort of forum or bulletin board where you can share ideas and strategies with other subscribers. This is important because you get a chance to interact with and grow with other members. When you get more experienced you will have a chance to share with the other newer folks in the forum. That’s when true learning happens – by teaching.
This is understandably the most important reason to subscribe to any penny stock newsletter. Obviously, you want some good or great microcap stock picks. You want a newsletter that more winners than losers (100% success rate doesn’t exist). Pay close attention to a newsletter’s win/loss ratio. Usually newsletters will let you preview their sample newsletters or get alerts via email. Subscribe to a couple of these alerts and paper trade those penny stocks. You will be able to see fairly quickly whether the newsletter is worth it or not.
4) Money-back Guarantee or Free Trial
Look for some sort of money-back guarantee. No newsletter can guarantee you returns. If they do, then run in the opposite direction. But, the better newsletters will offer you some sort of money-back guarantee or a free trial. Read the fine print and don’t commit to any funny payment plans unless you are sure.
5) Check The Disclosures
Some newsletters are compensated by companies or other related entities for recommending them to their subscribers. In simplest terms if penny stock newsletter A recommends stock XYZ, sometimes its because XYZ or some other company affiliated with XYZ has paid them to recommend that stock. Newsletters will make this disclosure in the extensive fine print. Read it carefully. We recommend staying away from such recommendations unless you have done your own unbiased research.
Phew! That was a lot of great advice. Now, you should be able to choose the ideal microcap stock newsletter quickly. Ready to start your journey into profitable penny stock trading?