Penny Stock Psychic

leeroy221

Hi all,

I got an email this morning which i found quite intriguing, it was for a penny stock psychic system.

The principle behind this system is that you buy shares which are of low value (you receive an email alert on which ones to buy and when to cash them in) and sell when they are relativly high.

As this is low cost and low risk i was thinking of giving it a go but has anyone else used of heard of this before?

Is it a scam?

Thanks,
Lee

dark^knight

Penny stocks are very risky.

edinburgher

Is 'psychic' simply their way of marketing their penny stock tips that are supposedly so good that they'll look psychic? Because if it's psychic in the sense of seeing into the future, I suggest you see a psych...iatrist

Just kidding - but do heed the warning of the previous poster. Penny stocks are often risky and while you're right to say they're low cost, your assertion that they're not risky is entirely innacurate. If anything, they're probably more volatile (and risky) than higher value company shares (my opinion, can't support it with figures).

Always beware of someone offering you unsolicited advice and remember that something is too good to be true it almost always is. I doubt that too many people make their fortune on penny shares...

Biggles

leeroy221 wrote: »

The principle behind this system is that you buy shares which are of low value ... and sell when they are relativly high.

No, really?
;-)

That's the principle of every system of buying stocks and shares.

The snag is that there are very few good systems and, if they need a gimmicky title like that to suck punters in, I'd be very doubtful if they were one of them. I wouldn't touch it with a bargepole.

leeroy221

Hi

Yeah i was thinking a bit along those lines...

The email itself says you pay a one time membership subscription, about £20-30 i think it was, they then do all the research and eliminate all the so called risky ones and email you an alert on the more sure fire ones if you like, aparently, if you follow the email you will be trading the exact same shares as this guy does.....

Spartacus_Mills

leeroy221 wrote: »

The principle behind this system is that you buy shares which are of low value (you receive an email alert on which ones to buy and when to cash them in) and sell when they are relativly high.

I think you have hit on something there.

It does sound a scam to me, or at least rather suspect. I would personally steer clear of it without alot more knowledge and detail about it.

Could you possibly post the email you received (removing personal info).

Reaper

leeroy221 wrote: »

The principle behind this system is that you buy shares which are of low value (you receive an email alert on which ones to buy and when to cash them in) and sell when they are relativly high.

A principle that can and should be applied to every share, not just penny stocks. Though you need to judge what counts as cheap. The actually share price tells you nothing about whether they are cheap or expensive. A 5p share may be overpriced while a £10 share might be cheap.

As this is low cost and low risk

:rotfl:It's neither. Penny shares are incredibly high risk, and it's not low cost either as you will have to pay transaction charges (standard cost is £10 to buy and £10 to sell though there are some cheaper) which make small purchases uneconomical. Many will say buying an individual share in quantities of less than £1000 is a mistake.

Is it a scam?

Is this American penny shares? If so they are awash with scams. The simplest is to buy a share yourself then send out a newsletter to suckers saying it is a hot tip and they shoudl all buy too. As they do it temporarily forces the price up after which you can sell and make a profit. This is known as "ramping". There are lots of other scams along the same lines.

In brief take no notice of spam offers of penny share tips. And if you want to play with cheap high risk shares you would be better off looking at shares quoted on the UK's AIM stock market.

edinburgher

The email itself says you pay a one time membership subscription, about £20-30 i think it was

Bingo! They take your money, send you a few newsletters and then move on to the next sucker As I said before, it's always best to ignore unsolicited mail/email of a financial nature...

Reaper

LOL I just did a Google search. The guy running it has posted stuf all over the internet such that if you type in Penny Stock Psychic all his stuff shows near the top of the list. Best of all he has made heavy use of the words "review" and "scam" to try to prevent any independant websites getting a look in (you won't be surprised to hear the reviews he wrote on other sites and blogs are glowing!)

His web site is particularly annoying as endless popup boxes try to stop you leaving.

This shows all the signs of something you should not touch with a bargepole.

turbobob

Low cost, low risk and penny shares don't really belong in the same sentence. They are not low cost as they usually have a large spread. The spread is the difference between the price you buy at and the price you sell at. On illiquid, low value shares this can be high - like 25%. What that would mean is if you bought them you immediately have a sizeable loss to make up before the price has even moved. They are not low risk for fairly obvious reasons and can be used in "pump and dump" type scams because their share prices are easily manipulated.

Biggles

leeroy221 wrote: »

The email itself says you pay a one time membership subscription, about £20-30 i think it was

I'm afraid that's the clincher. Any decent tipsheet, that really does research and really tips shares they've done a lot of work on, charges £100-200pa or more. And some of them are worth it.

If they're only charging £20-30 for lifetime membership, then you will lose money. Both to them and on any shares they tip.