Read Dislaimers To Keep Your Penny Stock Fortunes

In a recent post, I mentioned what to look for when researching a penny stock newsletter.  Always read the disclaimers that conveniently hidden on shady penny stock fortunes web sites.  A reputable company will have their disclaimer boldly stated and very easy to find.  Trading in penny stocks is risky enough even with good information.  Pay heed to the disclaimers and you will be ahead of the pack and on your way to making  fortunes in the microcap stock market.

Here is the type of disclaimer that is good and suggests a reputable source:
” Disclaimer: Never invest money in microcap stocks that you can’t afford to lose.
You can lose all of your capital by trading any stock mentioned.
These stocks are very volatile and gain and lose value quickly.
We reserve the right to trade any stock mentioned freely.
We are not compensated by any mentioned companies.We recommend stocks based on our opinion of intrinsic value only.
We are not registered investment advisers, so always do you own research before buying any recommended stock.”

Not being compensated is a good indication.   The writers of this newsletter have no vested interest in the stock that that are suggesting has a potential to make a profitable move.  Their success at making penny stock fortunes is based on the success of their recommendations.  If everything they suggested went into the toilet, so would their business.

In my opinion, I would do more home work on finding a reputable penny stock newsletter than the research on the stock itself.  Why do I say this?  Because the research on the stock will be easy once a newsletter recommends it.  You can go to Bloomberrg, Yahoo Finance, and dozens of other sites that will tell you in full detail the financial condition on the company that you are looking to buy.

Make sure that when you subscribe to a newsletter that you go through a 3rd party billing such as Paypal or Clickbank because it’s easier to get a refund.  In fact, Clickbank requires full refund for up to 60 days.  All the risk is placed on the seller, not the buyer.  It’s like trying before you buy because it will not show up on your credit card until next month.