There is a safe way to trade penny stocks and there is definitely a dangerous way. The safe way usually involves gradual profits and the dangerous way usually involves throwing it all on the line. Those who survive day trading penny stocks do it the safe way. You simply cannot expect to get rich off of one penny stock. It has happened and it can definitely happen to you but that is more of a gamble.

Expecting to make 50% or 100% gains on a fraction of your cash a couple times a week is a more realistic expectation. Don’t get me wrong, these are astounding gains! It’s just that when people see this happen they give into the temptation of putting all their money on the line thinking they can’t lose. Wrong, penny stocks go up and down faster than any other stock type.

Penny stocks make it possible to invest small amounts of money to test the waters or just play it safe. You can literally invest $50 or even less and have thousands of shares. Of course the more money you invest the more you will make but gradual profits are the key to averaging your way to penny stock wealth.