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Posted on Tuesday, July 7th, 2009 at 2:43 pm

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Penny Stocks Message Board Characters by Nir Dotan

Most penny stocks investors would have checked one of the numerous message boards or discussion forums dedicated to such stocks at one time or another. These message boards were set up as a way for penny stock investors to congregate and communicate with one another.

The boards are a means for them to spread/receive news, transfer ideas, exchange tips, and discuss strategies with their fellow penny stock investors. These online message boards are generally referred to as the boards and attract all sorts of people.

The penny stocks message boards often generate a high volume of messages every day. These posts range from hard facts, strange fiction, speculation, nonsense, and different combinations of these kinds of posts.

Legitimate penny stocks news, opinions, recommendations, strategies, warnings and inquiries can also be found in these message boards. One can also find a lot of fraudulent news and recommendations, as well as bad advice on these same message boards.

One way to discern the useful messages from the useless ones is to know the different kind of posters that can be found in the message boards. There are many types, but only the most common ones will be mentioned here. These three to watch out for are the stock bashers, spammer/stock hypes, and long-term penny stock holders.

Stock bashers are people who post messages that are meant to drive a particular penny stock's price down. These people stand to make money when the price of the penny stock that they bash slides downwards. Often, they sell the bashed penny stocks short, or are seeking to buy the bashed penny stock at reduced prices.

This works for the bashers because it is much easier to scare investors to selling the penny stock that they hold than to get people to buy stock. There are several kinds of bashers as well, from the amateurs to the pros, with differing levels of subtlety at stock bashing.

The spammer/stock hypes are almost the opposite of stock bashers, but they can be irritating just the same. These people tend to be the most common type of message board posters, and they are all over the place. They promote penny stocks at several message boards, with all kinds of baseless promises and speculations, sky-high projections, and supposedly insider news.

They spread the word to as many people as possible, and hope that someone would take the bait. The spammer/stock hypes messages should be taken with a grain of salt they are often some truth combined with lots of speculation, or could be outright and shameless lies.

The long-term penny stock holders are also known as die-hards. These are people who bought a particular penny stock a long time ago, and oftentimes that particular penny stock is the bulk, if not their only investment. The long-term penny stock holder hopes that he will make his fortune with The One the particular penny stock that he has bought when its stock price appreciates considerably.

Unfortunately, to his dismay, the penny stock that he has bought performs poorly, either through poor volume movement or depreciation of stock price. The long-term penny stock holder would promote his investment and viciously attack anyone who would do any negative post on his penny stock.

If you're planning to invest in penny stocks and are looking at the message boards for some tips on what stocks would be a good buy, take the time to analyze the character of the posters on these message boards in order to avoid investing in a dud, or letting go of your promising penny stocks. Sometimes, what you don't know will hurt you.

Nir Dotan is a writer and promoter of
Penny Stocks
services, and
Penny Stocks Preferred source for the latest news and information on the best and brightest Small Cap Stocks.

Article Source: http://www.earticlesonline.com/Article/Penny-Stocks-Message-Board-Characters/428390