There’s a lot more to investing in penny stocks than what meets the eye. On one end of the spectrum, you have young millionaires that haven’t worked even half as much as you did before you hit thirty and on the other end, you have people who lost all of their money overnight because of scams. While either ends are real, there’s a greater chance that you’ll be able somewhere between these extremities if you choose to invest in penny stocks.
Penny stocks can indeed be terrible investments that can cheat you out of all of your money; there are many companies out there that are looking for people that they can trick into investing in them. Scam artists re often hired by some of them to make their stock alerts as convincing as possible so that you end up getting lured in. Why isn’t any of this illegal, you ask? Well, it is illegal, which is why they try to play lawful evil.
According to a foxytrades article, even the most shamelessly false stock alerts carry some truth, you just need to learn to find it. Every penny stock will have a disclaimer that might be a painful wall of text to read but it’ll at least tell you that the stock is full of it. They’re required to be honest with you if they don’t want to end up behind the bars – that’s how scams work.
So, how does one invest in penny stocks and not end up totally broke and helpless? Well, like the foxytrades article says, you need to know the tactics that scam artist use to trick you. This way, you’ll know what to expect from a stock before you invest in it. That and the fact that you should never invest all of your money in a stock.