You could also lose nearly your entire investment in a short period of time. Choosing good penny stocks is an art and a science – Read on to learn more about choosing a profitable penny stock.

Penny stocks, also known as low priced stocks (not saml lcap stocks as is the common mistake. Price and Cap of the stock have nothing to do with each other!), are generally short-term investment stocks. Because of their volatility, it’s almost never the right choice to invest in a penny stock for long-term investment. Unlike long-term investing where you might pick a stock and not review your profits for days; with penny-stocks, you have to be ready to buy and sell at a moment’s notice.

Trading penny stocks is largely an educated speculation. You compile data based on the stock’s industry, company, management, product quality, and competition. Based on your data, you make an educated guess as to whether the penny stock will rise or fall. Based on your educated guess, you then place your order.

When you’re considering your penny stock, be sure to take into account how affected your stock is by outside economic conditions. Also observe industry trends, and see how this affects your company’s products.

In short, penny stocks can be a very lucrative, yet very dangerous game to play. Trading penny stocks can be lucrative if you know what you’re doing, yet you can also stand to lose thousands of dollars if you play uneducated.

Convicted spammer escapes from prison (Infomatics)

Convicted spammer Edward "Eddie" Davidson has escaped from a federal prison camp after serving just five weeks of a 21 month sentence. Davidson was convicted of sending millions of spam messages promoting penny stocks which he then traded when the price rose.

Several state banks' stocks tumble to 'penny stock' levels (BizJournals)

A number of Alabama-based banks' shares are considered "penny stocks" - a moniker given to a company with shares trading below $5.

'Spam King' escapes from federal prison in Florence (Rocky Mountain News)

The man known as "The Spam King" walked away from a minimum-security federal prison Sunday in Florence and was last seen in Lakewood.

Convicted spammer escapes from prison (VNU Net via Yahoo! UK & Ireland News)

Convicted spammer Edward 'Eddie' Davidson has escaped from a federal prison camp after serving just five weeks of a 21-month sentence.

The Crack Up Boom, Part V (GoldSeek.com)

As we look out over the next six months what we see will be extraordinary. The opportunities for prepared investors have never been brighter as the unfolding volatility will be incredible. “Volatility is Opportunity � for the prepared investor and it will arrive in spades.

`There`s no backtracking on NMCE deal` (Business Standard India)

The Bombay Stock Exchange (BSE) has seen some major changes at the top, with chairman Shekhar Datta and industrialist Jamshyd Godrej, both members of the exchange's governing board, and CEO Ashok Kumar Raut resigning in quick succession.

'Spam King' walks away from Florence prison, last seen in Lakewood (Rocky Mountain News)

Edward "Eddie" Davidson, known as "The Spam King," walked away from a minimum-security federal prison Sunday and was last seen in Lakewood.