Where can you find a good Penny Stock Picker or Penny Stock newsletter?

What should you consider when looking for a good penny stock picker? Some of them seem to charge an incredible amount of money, sometimes going beyond a thousand dollars per subscription. On the other end of the extreme, there are some penny pickers who don’t charge a penny for their service. What really matters are the results. Regardless of the price of a subscription, if a penny newsletter helps you achieve 100% profit fairly often, it is definitely worth the price as long as the subscription fee is within your reach.

Let’s look at some of the pros and cons of signing up for a fee-based penny / microcap newsletter.

Pros: The fact that someone is responsible to some degree for providing quality penny / micro-layer stock recommendations. If you subscribe to a service and receive nothing but poorly performing stock picks, you are likely to unsubscribe and the newsletter owner will lose valuable income. You should also be able to get email support from the penny picking service, as you have taken the step of paying for their service. Last, and perhaps most importantly, stock picks submitted by the service must be completely objective and without conflict of interest. They should not be compensated by any third party for recommending a particular company / action.

Cons: Your risk can be doubled with a fee-oriented penny picking service, as you’re not just paying for a subscription, you’re also putting your trading money into your stock picks. This is where it’s important to look for penny stocks newsletters with strong cancellation and refund policies. It’s a hassle to have to go through hoops just to get a refund when you’re not happy with a particular newsletter. Also, sometimes a penny picker can get a bit shy and not pass on a selection after making one or two bad decisions.

Second, let’s examine some good and bad points of a totally free penny / micro cap newsletter.

Pros: It’s free! You don’t have to bother with shelling out money to get the spikes. Most of the time, all you have to do is sign up with your email address and name.

Cons: Non-objectivity is the name of the game. Most penny recommendations you receive will not be based on independent opinions. The totally free penny services only offer stock picks due to the fact that they were compensated with a large sum of money to promote the common stock of a certain company. This may not seem like a big deal to you at first, but I assure you it is a huge hurdle to overcome as a trader or investor in micro-cap companies. The reason is that after stock picking is publicized, insiders start shedding many thousands or even millions of shares off freshly inspired buys during trading hours. This greatly disables the ability of stocks / shares to appreciate in value, as the stock offering has increased so dramatically in such a short period of time.

Conclusion: The obvious choice is to opt for fee-based penny stock pick newsletters. They give you the best chance of success, as their motivation is to make you earn money from their stock picks. On the other hand, the motivation behind free penny picking services runs totally counter to your success as a merchant. They just want to attract more newbie investors so that they can get big compensation commissions from the company that needs its stock promoted.

Not sure which penny stock newsletter to start with? Microcapmillionaires.com offers 3 free penny stock recommendations for you to try before you become a paid member. The fee is $ 49 a month if you decide to join.