Message Boards Provide Penny Stock Info

By Peter Leeds

Message boards, or chat rooms, are forums where anyone can add their own comments to the discussions. For example, you could visit a message board where participants are talking about a particular stock and jump right in with a bunch of made-up facts for everyone to see, and potentially believe.

Message boards are often full of misinformation and blatant lies. Many investors use them to attempt to push up the prices of their favorite stock rather than as a forum to discuss meaningful data. You should decide for yourself if they’re beneficial to you. You can have a complete and healthy career trading penny stocks even if you never lay your eyes on a message board.

One of the concerns with Internet forums about penny stocks is that you may be inclined to act upon information that will eventually turn out to be misleading. Message boards are also a popular place for promoters to drive their pump-and-dump schemes and make comments with the intention of controlling how you and other investors act.

If you decide to visit message boards about specific penny stocks, enter at your own risk and don’t believe anything you read.