June 16th, 2010 
Rod Meier So what actually is a penny stock? A penny stock is commonly known as a stock that is priced between one and five dollars. In the Uk it is known as penny share. Penny stocks are traded over the counter through the OTC Bulletin Board. You won’t find them in major stock exchanges like the NASDAQ Stock Market or the Ney York Stock exchange.
Penny stocks are growing in popularity, however, it should be noted that although they are cheap, they are still risky and most professionals label them as dangerous. You can probably compare a penny stock to a slot machine. You have to but only a quarter into a slot machine to play the game, if you want to play the penny stock game you will need to invest up to five dollars per share The risk factor of playing these games is very high and in addition to this, both penny stocks and slot machines have in a lot of cases a very small return on your investment.
So are penny stocks safe to invest in? Yes, they are, if you buy penny stocks solely from reliable penny stock picks. You should bare in mind that penny stocks are just like regular stocks peddled by traders. However, you have to make sure that the trader you are going to work with and the company you are investing on has credibility and an outstanding track record. Penny stocks are often subject to manipulation and fraud so being careful is paramount.
The starting point is creating an investment strategy. This strategy will involve a systematic way of finding profitable stocks. You also should have an entry and exit plan when buying penny stocks and you of course have to stick to your plan. Always keep in mind that even a drop of some cents in the price of the stock leads to a sizeable loss.
I recommend browsing the web and looking for websites offering penny stock picks. However, you need ot be careful, free information in in most cases not good at all. It is a good idea to spend some dollars buying hot penny stock picks from reliable sources online
It will take a while and some trades before you feel comfortable trading penny stocks, and it may also take a while before you make a profit
Learn How To Find Hot Penny Stocks And Make Money Trading Penny Stocks Fast. Go To Penny Stock Trading At http://www.pennystocktradingblog.com/the-penny-stock-prophet-and-psychometric-science-does-it-work
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