What to Look for in a Penny Stock Subscription

Finding the right penny stock subscription can be challenging due to the volatility of this market. There are just as many bad penny stocks, if not more, than there are good ones. There are a few things you should look for when searching for the right subscription.

Analysis Performed
For the picks they give you to be any good, a penny stock subscription should have significant analysis of any recommended stocks. You will want to know that you are dealing with a professional who is not just picking stocks at random. While it is unlikely that a service will tell you the exact analysis performed, you can certainly ask what the general criteria are for the stocks they pick.

Cost
As with all things in life, the cost of the service is a significant factor. If you are not going to be able to invest any money after paying for the service, you need to consider other services or options. Some will have a weekly or monthly fee while others will ask for a one-time payment. Consider setting a budget for this before you go looking for a product.



Guarantee
Any penny stock subscription service you sign up with should give you a money-back guarantee for the service. This will typically only be for a certain timeframe. A good service should give you at least several weeks to try out the service and the picks that they are giving you. This should help you figure out if the service is legitimate or not. Keep in mind that it is unlikely that they will give you back any money you invested in the stocks they picked. Invest conservatively until you are certain that you have a good service.

Track Record
If the service is any good, they should be comfortable telling you what their track record is. They should be able to show you the profitable (and unprofitable) picks they have made in the past. Before trying out the service, consider asking for this information if their website does not provide it. Be sure that you look at the information in context. Since stock prices change daily, find out when they told investors to put money into a stock and when they told investors to pull it out.

Number of Stocks
Some penny stock subscription services will give you a list of stocks you can invest in daily or weekly. While this may be fine if you have significant money to invest, you may want a service that gives you a smaller list. Ideally a smaller list will be more thoroughly researched and will allow you to make fewer trades.

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