If you are entering into the world of online stock trading, you may have recently heard quite a bit about investing in penny stocks. Some investors promote these stock with passion, arguing they are the best investments for individuals to earn money on quickly using day trading stock strategies. Others, however, will warn you away from them altogether, saying they are way to risky to invest in and that you should stick to the regular stock market index instead.

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.