Penny stocks are notoriously difficult to pick. In part this is because there are so many to choose from, it is often hard to know where to start. In addition, you have to be careful about penny stocks with artificially inflated prices, and little public information regarding the stock company.

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.