Penny stock investing might seem like a daunting task for some. Notoriously risky, penny stocks are shrouded in a state of mystery.

The decision to invest in penny stocks is a brave one. Penny stocks are notoriously volatile, and hence have a high risk factor. Investors have made great gains investing in penny stocks.

Too often new investors jump into penny stock investing because of the notoriously high returns. Too often they do not realize that potentially high returns also mean potentially high losses