Search for “free penny stocks alerts” on Google and you will come across a bunch of websites offering stock picks. The only problem is, the vast majority of them are stock promoters with hidden motivations, targeting beginner traders. This can be seen in movies such as Boiler Room except they promote companies via cold calling instead of email.
Despite how well-known pump and dump schemes are nowadays, there are still people falling for these scams hoping to get rich quick. The lure of making money without doing any hard work is too difficult to resist and the emails are so persuasive.
UltimateStockAlerts.com is a prime example of a penny stock promoter trying to attract suckers to join their email list. They also provide alerts via a text message app to maximize the number of investors who see their free alerts. Their website is nicely designed and looks trustworthy to the untrained eye.
On the homepage, they have fake testimonials from members who apparently banked profits from their newsletter. All the reviews have common names like Brian, Bill, and Francis. At least select more realistic names to make it sound believable. When you visit the site you can’t leave until you give away your email and you’re harassed by pop-ups. Once you sign up to their list, your inbox will be spammed on a daily basis with the “next 1000% gainer”.
List of websites with free penny stock alerts:
Stock promotion is legal as long as the promoter discloses everything in their disclaimer. The problem is rarely anyone reads the disclaimer. Below the UltimateStockAlerts.com disclaimer reveals everything to protect themselves against any future lawsuits. They publicly admit once the campaign ends the company profiled will collapse.
The companies they advertise are absolutely worthless with barely any profits. They only want to artificially increase their stock price so insiders can get rich from dumping shares on new investors. In recent times the SEC has clamped down on such behaviour so these schemes aren’t as successful in 2020.
Generally, most free alert services advertise by buying ads from Google. They bid on specific search terms their target market is searching for. Paying for ads on Google is expensive and some sites pay $1-$4 per each click on an advertisement. Rising advertising costs lead to these sites using Instagram and Facebook to lure in new victims.
The top promoters use hot trends to catch the attention of subscribers. Right now bitcoin is hot, so they will advertise a small company they claim will profit the cryptocurrency mania. For e.g. PennyStockProphet.com was promoting Global Blockchain Technologies Corp (BLKCF). The company changed its name to include the term “Blockchain” only to attract new buyers. BLKCF is just an investment company that invests in cryptocurrencies, the share price went from from $0.01 and peaked at $11.30 in November 2017. Right now BLKCF is trading at six cents per share!
For those traders flash with cash and willing to pay for “premium” picks, there are various chat rooms that provide day and swing trade alerts. Chat rooms have experienced traders alerting others to popular penny stocks they are watching. They are a great place to learn but don’t become a sheep!
If you’re just copying trades from others you’re not learning how to trade. You need to become independent with the ability to generate your own ideas. The top services give detailed information explaining why a stock is in play and exit & entry points. Be careful though, not everyone in paid chat rooms is interested in helping others. There are scumbags who take advantage of beginners by front-running low volume alerts.
Paid Chat Rooms with best penny stock alerts:
- Tim Sykes Pennystocking Silver
- Investors Underground
- Humbled Trader
- Warrior Trading
The world of day trading penny stocks is rife with scam artists. The biggest danger to new investors are free stock tips, services almost always have a hidden agenda. Even if the tip is from a legit source, always do your research before risking your money. Day trading is a tough industry where 80% of people lose money. Invest in education and find a solid mentor to help avoid a rough start and shorten your learning curve.