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Also know that most newsletter writers may take positions in the penny stocks that they recommend to you. Yes, they sometimes buy shares in a stock that's about to be recommended in the upcoming issue. They usually buy-in two or three weeks before the recommendation goes out, maybe earlier.
This usually gives the share price time to settle back down after they've made their purchase. If this type of behavior bothers you, then I suggest that you just get over it. It's a fact of life and it's not gonna change. I'd do it, you'd do it, and so would everyone else. So don't lose sleep over it.
Look at it this way. Somebody owns the penny stock no matter what price it is. I look at it like this. They're putting their own money where their mouth is.
When and if the price of the stock goes up, it's always up to you to make the final decision as to when to get out, right? Yes, that's exactly right!
It's possible that the newsletter writer could buy in early and get out with a quick 1/8th, 1/4, or 1/2 point move. But guess what .. so can you! A newsletter like ours has a big subscriber base, or a big following of traders. This can propel a stocks price upward when everybody starts buying in.
Many times this buying momentum can propel a penny stock to new highs. If you
know the trading pattern of the stock you'll always feel more comfortable about making decisions as to when to get in or out of that stock. A big subscriber base does not automatically mean that every pick goes up!
We'll go over this in more detail later when we cover placing trades and trading strategies. If you watch the TV financial news channels, you'll sooner or later see a news flash about a stock being up $10.00 to $20.00 a share in one day, based on the recommendation of some alert service.
It happens all the time. It could happen to you or me (I hope). One thing's for sure. If you don't have money in the market it'll never happen to you! I believe that having one good newsletter or alert service can be one of the best financial moves that you'll ever make.
Remember! We do a great deal of work searching out specific companies that meet a pre-defined criteria. It's hard to put a price on the true value of a newsletter. All you have to do is spend a little time trying to do research for yourself to realize that the small price you pay is a real bargain!
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