So who is right? Well, the short answer is probably, both. Penny stocks do have a great potential to earn money quickly. In part this is due to the buying power most small time investors have when it comes to the penny stock market. If you only have $1000 to invest, you often have the choice between buying 10 regular shares at $100 a share, or 1000 penny stock shares at $1 a share. If the regular share’s value increase by $1, you will only earn $10, but if the penny stock’s value increases by only ten cents, you will have earned $100 with your penny stock investment.

Given this dramatic increase in earning potential, many want to enter into the penny stock market. But why are they also risky? The answer to this question is more complicated, but in part they are more risky than regular stock offering because the stock’s value may have been manipulated through deceptive marketing practices, such as the company paying individuals to promote that stock on stock message boards or give false positive reviews.

If you are considering trading penny stocks, you will need to have a reliable system for sorting out penny stocks and finding reliable penny stocks to invest in. There are two systems you may want to consider investing in. The first is the Penny Stock Prophet, a system of penny stock trading built around an exclusive formula that helps you pick the most reliable and best likely to perform penny stock offerings. And you also may want to consider investing in some penny stock screening software or a penny stock monitoring service, such as Best Penny Alerts. Both of these programs are excellent resources for the beginning penny stock investor, and both have a full 60-day money back guarantee, so there really is no reason not to give them a try as they will likely give you returns that make them an excellent investment.

James Connelly is a penny stock guru who while still a student of mathematics at MIT, developed an unique mathematical formula that proved to be quite successful in the penny stock market. In a matter of just 13 months, he was able to turn an initial $1000 investment into over $1.3 million dollars!

Now he is sharing this formula with those who enroll in his investment program. James Connelly coaches his students daily with penny stock advice and picks based on his mathematical formula.

Click here to visit The Penny Stock Prophet website and read the testimonials from his many successful students.

Connelly knows that not everyone has the mathematical background he has, but he carefully shows his students how to analyze the entry and exit points of penny stock picks in order to have the most profitable returns. Connelly’s simple algorithm will work for anyone with the ability to learn and understand the fundamental workings of the penny stock market. Most of James Connelly’s students are average humans with no special mathematical or financial ability. The most successful students do, however, have an abundances of energy an eagerness to learn as quickly as possible how to succeed in the penny stock market.

If this sounds like you, then you should take action now and not procrastinate any further! Each day waiting is a day you are not profiting from this system…

Click Here to Learn More Now about the Penny Stock Prophet!

What is the best way to choose your penny stock investments. There are three basic steps you should take with every penny stock investment:

1) Use a stock screener. Stock screeners are able to sort through thousands of stocks instantly using a wide number of variables. For penny stock investments, a reliable stock screener will save you hours of time sorting through stock offering.

2) Check out that stock with the Security and Exchange commission. The SEC makes the information it has about individual stock companies publicly available. Just visit the SEC website and do a search of that companies ticker label to learn out what information is available to you regrading the company’s history and performance.

3) Learn what other investors are saying about the stock. This is the most difficult step, since you have to be careful about false hype and paid endorsements of a certain penny stock. You should try to find several different endorsements of that stock from a variety of different sources. Be particularly wary of any stock that is being hyped on stock message boards, since that is a common way to falsely inflate the value of a penny stock.

By following these three steps, you should be able to narrow down your selection. You should also consider investing in a sound penny stock investment system, such as that used by the Penny Stock Prophet.

Click Here to Learn More About the Penny Stock Prophet.