How to Protect Yourself Against Penny Stock Scams

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Many people were susceptible to fraudulent penny stocks. They hear about the next large number of hot coins on bulletin boards, emails, faxes and other people who claim that such a coin will go through the roof. Therefore, they listen and invest a little money in this penny. Then, behold, they see their investment catastrophe, and they wonder what went wrong. Then they continue to blame other people when, in fact, they have no one to blame but themselves. Here are three ways davenport laroche scam to protect yourself against penny fraud.

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  1. Accept the information you see on the salt bulletin boards. 

The bulletin board is a double-edged sword. On the one hand, they can be an excellent source of information. On the other hand, bulletin boards are a fertile ground for wolves that take advantage of novices. These wolves are known as “bombs”. They will offer you an important sound terminology and will communicate to know for sure that this is the next source of coins to invest in. Sometimes these “bombs” are not another person, but people paid by a company with a bloated penny artificially inflate the price by word of mouth. Use extreme discretion in deciding what information to use when making a final decision.

  1. Ignore postal, electronic or fax messages found in penny stocks.

Penny shares are promoted through unsolicited mail, email, fax and are also marked with large red letters that impose a SCAM signal. Do you know people who say everything and no action? Penny promotions that are advertised through spam are all conversations and there is no action. The sole purpose of the expense is to create artificial heights to inflate the price of a penny. Then, the people who promote shares will sell their shares with a profit, thus reducing the price of the shares, leaving those who have recently invested with a negative loss. Worse yet, the same people who have recently purchased expect the stock price to rise again, but 9.9 times out of every 10, the stock price will continue to fall and they will suffer a great loss. 

  1. Do your own research and assume personal responsibility.davenport laroche

If you come across penny stocks that look promising, do not accept them at face value. Do your own research on this penny stock. What services or products are offered? How is your cash flow in recent years? Have you recently declared bankruptcy? Take a look at your quarterly account statements. In other words, you and only you should be fully responsible for any action you take when it comes to placing money in penny stocks.

Follow these three principles and you will succeed in protecting against one cent fraud.