Have you ever received an email alerting you of a stock that will double or triple tomorrow, and that this top secret information was only being given out to a handful of carefully selected people? Perhaps you even thought about buying but passed on the offer, or forgot about it. In a case like this you can count your blessings. Unsolicited stock tips are disguised to pump up the price of the Pink Sheet stock, then the people that are doing all the hyping of the stock dump their shares to you and move on to the next Pink Sheet stock. The cycle continues while the buyers lose and the sellers get rich.

The scams that occur most often involve Pink Sheet stocks, because it is an unregulated computer network that matches the sellers and buyers. Since the Securities and Exchange Commission have made it more difficult for people wanting to use Pink Sheet stocks in order to scam others, all it has done has made the Pink Sheet stock scammers more creative.

If you are interested in buying into Pink Sheet stocks there are things that you, the investor can do to avoid joining the high percent of people that have ended up scammed and broke from buying Pink Sheet stocks.

The first thing is to find out where the stock is traded. For this, all you need is the company name or stock symbol. You can enter the symbol into the majority of the online financial websites to find out where the stock trades. If it is a Pink Sheet stock there will be “PK” symbol after it.

Many securities lawyers, accountants and regulators won’t get involved with Pink Sheet stocks since there aren’t enough legitimate reasons for a stock to be listed on the Pink Sheets. The risk of Pink Sheet stocks is high, however, not all Pink Sheet stocks are shady, but it pays to keep your defenses up and do your research.

If the company does not disclose any of its financials, DO NOT invest in it. If there’s a Pink Sheet stock that you’re interested in investing in, research. Find a company or website that offers hints, tips or general support and information. There are many online experts ready to help you to make money from Pink Sheet stocks as opposed to losing it.

Whilst Penny Stock Trading can be risky, John Triggerman has the solution to enable profitable trading via a newsletter offering weekly picks. It can be found by visiting Penny Stocks Newsletter. The newsletter also includes a free 52 page Penny Stocks Ebook to explain in greater detail what Penny Stock Trading is all about.