Penny stock investing is not for those who wish to park their money and forget it. The wild swings of the penny stock market almost make it inhibitive for anyone but insiders to make any real money in the penny stock market. But if you follow a few rules you may be able to align yourself with enough protection that you too can make a bit of money in the penny stock market. At least make enough money to buy some blue chip stocks, park your money, and forget about it.
Penny stock investing is a bit like elementary school popularity. If you're like most kids in elementary school you will remember times when you were really popular and then times when you were really unpopular. The same is true of penny stock investing. You need to be able to track an individual penny stock, look at its recent performance, see what the chatter is about it, don't believe any of it, and make your own decisions.
There is a lot of noise in the financial blogosphere; about 3% of it may be useful. In the world of penny stock message boards and discussion groups you've got to have tough skin. Don't let the bullies pick on you! If you can see through the smoke you too could be successful managing the swings.
When you're invested in a penny stock you have to be a total cynic. Anything the message boards say, anything the financial press says, anything the blogs say, anything the press releases say; it's all discounted for actual filed paperwork.
If your company isn't filing any paperwork at all you may wish to just put that penny stock in your back pocket (and/or sell it!). However if your company is filing the paperwork and the chatter is all about how they're not making waves, that's okay. The wild swings from vine to vine don't come without the groundwork strength building fundamental stage. Because there are no wild swings may be more reason for you to hang on a little longer in your penny stock.
There are no hard and fast rules for penny stock investing. You could buy in at a penny, give yourself a high five as you sell at a dime, and kick yourself as your penny stock climbs to $36 and gets bought out. However you can't win (or lose) if you don't play the game. Penny stock investing does go on some wild swings but for many the alternative 1% in a CD isn't going to cut it.
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