Investing in Penny Stocks is one way you can make fast money on the stock market. Before you start trading here are 6 important facts you need to consider which any decent penny stock advisor should let you know.

1. The definition of Penny Stock can vary. Generally speaking a share in a Penny Stock will trade for less than $1. You may well come across other definitions which state less than $5 per share.

2. Penny Stock companies usually have a market capitalization below $500M.

3. Penny Stocks generally have a low number of shareholders and their average market trading volume is significantly lower than mainstream stocks. This is important to bear in mind as you may find it difficult to sell your shares.

4. Penny Stocks share prices can move dramatically in a day which gives opportunity for profit but equally you can easily lose your entire investment. Penny Stocks are considered a highly speculative investment.

5. One of the major difficulties facing Penny Stock investor is the lack of readily available information to judge a company. Most investors rely on word-of-mouth or Penny Stock newsletters. It always best to search Yahoo! Finance or another reputable financial web site for information on a Penny Stock company to verify the recommendations you hear about.

6. Penny Stocks are frequent targets of illegal "pump and dump" schemes. In these schemes fraudsters will talk up a stock on internet messages boards and through "spam" e-mail messages. Once they have made a profit on the shares they will sell, and stop promoting the stock which usually causes the stock price to fall leaving other investors stranded with worthless stock they cannot sell.

The Next Million-Dollar Penny Stock? - MSNBC

The promise of outrageous returns is why some of the world's best stock pickers are, at times, penny stock investors. Peter Lynch has and still does enjoy the stock market's super-cheap seats. The Royce Low-Priced Stock fund crushes the market by ...

How to Trade Penny Stocks - Transworld News

Penny stocks are traded in over-the-counter market and you have to use a broker to acquire shares of penny stock. The main thing that you need pay attention to is having enough money in your account to cover the cost of the share and broker's ...

Making Cents in Penny Stocks - Motley Fool

The occasional shower of pennies from heaven might do our bank accounts some good, but we Fools can't say the same for penny stocks. Because the world of penny stocks is often full of manipulation and deceit , investors have a hard time separating ...

SmallCapReview - Penny Stocks to Watch - AIDO, CCBEF, TSTA. MXOM - Transworld News

To register for the Free SmallCapReview Newsletter and automatically be entered to win a Blackberry Pearl visit http://www.smallcapreview.com/subscribe.htm Advanced ID Corporation (OTCBB: AIDO) Closed at $0.26. Announced yesterday after market close ...

SE Asian Stocks-Mostly higher, Singapore drops to 21-mth low - Reuters

SINGAPORE, Aug 28 (Reuters) - Thai equities led gains in Southeast Asian stock markets on Thursday, hitting their highest level in a week as stronger crude prices lifted energy shares, but Singapore fell to a fresh 21-month low as investors dumped ...

AllPennyStocks.com Announces Corporate Write-Up On Advanced ID Corp. - BayStreet.ca

MISSISSAUGA , ON., August 27, 2008 -- AllPennyStocks.com Media, Inc. (http://www.AllPennyStocks.com), a leading penny stock / small-cap information site, released its latest spotlight company Advanced ID Corp. (OTCBB: AIDO). Advanced ID Corporation ...

Frank Barbera: Precious Metals Heading to All-Time Highs - Seekingalpha.com

Frank Barbera , CMT, is a veteran money manager and currently the editor of The Gold Stock Technician [GST] Newsletter , published since 1993. Barbera uses technical indicators to analyze precious metals and mining stocks, as well as oil and the ...