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.

Penny stocks - The anatomy of a pump and dump

Penny stocks - The anatomy of a pump and dump
HSMpennystocks
7 min - Apr 12, 2008

http://www.hotstockmarket.com - The classic chart of a pump and dump in the penny stock world. Watch and learn to identify this chart, you will save thousands!

Best to Invest in Penny Stocks in Your 20's

Best to Invest in Penny Stocks in Your 20's
TheStreetTV
3 min - Jul 3, 2007

Tim Sykes, a 25 year-old hedge fund manager, gives advice for young investors.

New Penny Stock Money Strategy Doubles Penny Stocks in Minutes

New Penny Stock Money Strategy Doubles Penny Stocks in Minutes

3 min - May 8, 2008

Information On Penny Stocks

Information On Penny Stocks

3 min - Apr 24, 2008

<a class="link" rel="nofollow" href="http://Stocks.MyVideoSignUp.com/">http://Stocks.MyVideoSignUp.com/</a><br /><br />Information On Penny Stocks

Investing and Trading: Spammage, Penny Stocks and Mail ...

Investing and Trading: Spammage, Penny Stocks and Mail ...
AirelonTrading
9 min - Jul 7, 2008

My Daily Blog is at: http://investorandtrader.blogspot.com/ If you really want to know what the world of penny stocks is all about? You should be listening to Timothy Sykes. Not to what you receive in the mail ... NOTE: This is not an investment or trading recommendation. The losses in trading can be very real, and depending on the investment vehicle, can exceed your initial investment. I am not a licensed trading or investment adviser, or financial planner. But I do have 12 years of experience in trading and investing in these markets. The Challenge accounts are run for the education of other traders who should make their own decisions based off their own research.

Information On Penny Stocks

Information On Penny Stocks

2 min - Nov 11, 2007

Information On Penny Stocks

list of all penny stocks

list of all penny stocks

2 min - Apr 23, 2008

a list of all penny stocks video from Stu Whisson at http://www.insightsupport.com a list of all penny stocks video explains further about penny stocks and provides info on Insights free course.