What are your general thought on reciprocal links exchange with other websites? Would you partake in such an activity?
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Depends on the Websites. If they would add value, then I'd think it would be a great idea.
I heard google will give bad penalty which is website too many reciprocal links. They said because is not come from natural link. Is it right?
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3 way linking doesn't hurt tho.
These days 2 way backlinks are not that useful anymore. Google indexes only when they are one way. So if its 1:1 share its not really a very good idea. Infact it might impact adversely in the search engine ranking.
Depends on the other Websites. If I have a real relationship with them of friendly cooperation, then whether I'm going to get Google benefits out of it or not, I'd say it's a good idea. Usually traffic begets traffic, and if it's good traffic, I'm all for it.
I think its the most risky way to get backlinks, Google absolutely doesn't like Reciprocal linking.