It’s an untapped field by so many investors. It’s a shame too. Penny stocks offer a wonderful opportunity for investing. Technically, I mean trading them, not investing. You see, that’s where people go wrong.

It’s hard to find a better trading target than penny stocks. I love all the swings. It makes it easier to make a profit. Without knowing too much about the companies, you can make money by trading the stock as it swings.

Let me back up and quickly point out what penny stocks are. Basically, a penny stock trades at $10 or less and is a very small company. Pennies are traded on the pinks, NASDAQ, and other exchanges. I’m not a fan of pink sheets at all. I typically say away from pink sheets and AMEX as a rule.

Many investors think they need to find the next big thing. Sure, you could do that, but why? I’d rather see profits on a consistent basis than watch my investment just sit there day after day.

Why focus on a once-in-a-lifetime chance when there’s opportunities every single day? Regular people can trade any penny stock and make money. Just make sure to not get greedy. Just make sure you don’t get married to the stock. Trade it and move on.

BTW, before I forget, there’s a beautiful free penny stocks PDF about this stuff here.

Keep your head clear. Don’t get caught up with emotion. You win, you lose, you move forward. The worst thing you can do is let your emotions run the day. Many investors have let fear control them and they crashed and burned for it.

Think volatility is bad? It’s great! As a stocks trader, you relish high volatility. The last thing you want to see is a stock going nowhere fast.

Some closing points:

Always research—always. Know your strengths and weaknesses. Keep up to date with stock ideas and create huge watch lists. This will give you lots of ideas.

Here’s a good financial site for general research: CNN