There's no debate.
Penny stocks have make many people a lot of money.
I've made money trading penny stocks and so can you.
However, like any financial investing, it's easy to make mistakes and online penny stock trading is no exception.
Today, we look at three easy profit rules for success.
Success Rule One: Avoid Fraud You may have heard the term "pump and dump" before.
This is one of the top vehicles for fraud in the penny stock arena.
However, it's fairly easy to avoid.
First, you need to be very suspicious of any stock tips that come to you out of the blue, like in a spam email.
If it's not from some newsletter you're subscribed to, dump it.
Second, be cautious when people in a penny stock forum recommend anything.
This is another field that scammers love to play in.
Finally, do your research.
If nothing else, use Google to see what information you can fin on a company.
If there's little or no information, don't bother.
Success Rule Two: Solid Online Stock Broker Don't start off on the wrong foot by using a poor online stock broker.
Do your research here and look for a company that's known.
If their history goes back 1-2 years, take a pass for now.
This is your money here.
You want good trading fees, but you first want fast trades and monetary security above all else.
Success Rule Three: Software Usually, your broker's trading interface will be just fine for trading penny stocks.
If you're looking for winning stock picks, that's usually best obtained through Web sites, newsletters and so forth.
Software has never really done the greatest "real time" job.
If you're interested, I have four other success rules to share with you.
Remember, trading penny stocks online is potentially very profitable, it's also risky (like anything else).
Take the right steps, make the right moves and trade with knowledge and you'll be set.