How To Promote Penny Stocks

Trading in the stock market is always a gamble. Trading penny stocks is even riskier because these come from small start up companies that do not meet SEC regulations. Thus, promoting penny stocks is always a challenging task. Here are some tips for promoting penny stocks.

Do a penny stock pump. Traders well versed in penny stocks hire companies or people to promote penny stocks by sending e-mails and snail mail to people who have expressed interest in penny stocks. Such marketing activity is called the penny pump and can be very effective since it is directed at a highly targeted audience. The downside to using penny pumps is that people have become wary of such tactics as it has been used by frequently by scammers.

Have your penny stocks listed in reputable penny stock sites. Since there are no stock exchanges for penny stocks, penny traders usually promote them in web sites. One such site is Global Penny Stocks. The first stock advisory newsletter offered exclusively online, Global Penny Stocks is the only penny stock site recommended by Barron's and Forbes. It specializes in picking stocks under $5.00 that are listed in the New York Stock Exchange (NYSE), NASDAQ, and AMEX. Many risky investors consult the site, so if your penny stock gets picked up by the site, you reach a wider market. Other web sites that list penny stocks include OTC Picks and Penny Stock Lists.

Join penny stock forums. Many stock traders and investors looking for the big win join such forums in hopes of finding the penny stock that will make them rich. If you are a penny stock trader, this will be a good venue for you to create buzz for your penny stocks. Examples of penny stock forums include Stock Goodies and Hot Stock Market. Furthermore, joining penny stock forums will give you an idea how other stock traders are pumping their penny stocks.

Go viral. One Internet marketing technique that has proven quite effective for many companies is viral marketing. You can use this Web 2.0 tactic to create awareness of your penny stock and the company itself. In addition, it's always a good idea to consider different Internet marketing techniques as they are very popular now. Social media marketing is one such tactic. This uses popular social networks such as Facebook, MySpace, and Twitter to promote your business or company. You can advertise your penny stocks in Facebook or use a service that will advertise your penny stocks in Twitter.

These are just some tips for promoting penny stocks. Be mindful that the material you use for your penny pumping efforts do not appear to be fraudulent because it might get you in trouble and instead of bringing in money, you might even lose money. Also, keep in mind that it will be better for you to direct you penny stock promotion efforts to people who have a history of investing in penny stocks because they are more likely to pay attention to what you are promoting.


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