(EMAILWIRE.COM, September 26, 2009 ) New York, NY - Peter Leeds, the widely known expert in penny stocks and CEO of PennyStocks.com, is showing new investors how to protect themselves from the various scam and fraud attempts that abound on the internet.

With several recently released publications, including blog entries, press releases, articles, and his new book, "The Penny Stock Professional," Peter Leeds has begun a mission to educate unwitting investors about the various pitfalls and scam attempts that they may encounter.

Peter Leeds also launched The Online Penny Stocks Guidebook to help people further protect themselves as they trade.

"The vast majority of these various scam practices, while they take many forms, are actually very easily avoidable," said Peter Leeds. "With a little knowledge, investors can sidestep the pitfalls, and focus on finding the really well-run, high quality penny stocks that will be profitable and rewarding."

Peter Leeds went on to say that scam artists have been using many tactics recently, including dishonest "research reports" about companies, misleading press releases, false information on free "penny stock pick" websites, and statements on various message boards.

"In all cases, it's about driving up the prices of these penny stocks, while they sell their own shares to the unsuspecting investors who have been misled," said Peter Leeds. "It's a scam that is no less dishonest than the ponzi schemes that have been on the news recently. It's simply people lying to make more money for themselves."

Peter Leeds offered several tips that will help investors protect themselves, including:

• don't believe anything you read on message boards
• don't trust anything your read on free websites
• be wary of any penny stocks you heard about for free
• word of mouth penny stocks (ones you hear about from co-workers) are among the worst scam, as they are often rumor-mill pump and dump stocks
• do not provide your e-mail to "free newsletter sign-up" forms
• only trust penny stocks you hear about through paid services, and even these still require your own due diligence

Overall, Peter Leeds suggests that you remember all the different hidden motivations behind the penny stocks that are profiled to you. Many of the reports are written by people who are paid by the underlying company, and in most cases that company is not a good investment.

Peter Leeds mentions that there are a lot of great companies that are technically penny stocks because of their share price, but that still are worthy of investment and have great upside potential. However, he cautions that you should not risk all the scam practices and pitfalls in your quest for them.

Contact Information:
Peter Leeds, Inc.
tammy johnson
Tel: 1.866.MY.LEEDS
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