With the rising popularity of penny stock investing, a lot of people are now trying their best to get a hold of as much stock as they can.
But before you jump into that bandwagon, heed these 5 tips before you make the big mistakes and lose a lot of money in the process.

1. First, find a trustworthy penny stocks broker.
   It is easy to find one in these modern times using the power of the internet.
   There are a lot of reputable brokers online, but don't be tempted to sign up with someone who charges the smallest commission, there might be a reason why they're so cheap.
   Go for the one's who are sure to get you quality returns for your investments.
   
2. Get familiar with the stock market lingo.
   If you understand even half of what your penny stock investing broker tells you then you would make better decisions regarding your stocks.
   
3. Your investments will be more successful if you are familiar with the company you invested in.
   invest in a company that has a good idea, product or service.
   Many of the penny shares companies do go bankrupt.
   The trick to making money off of them is to know when to sell your shares before they do go under.
   
4. Use your broker's knowledge in finding your much-needed company information.
   You need to at least see the company prospectus, their business plans and financial status.
   Periodic reports of the company are also good.
   
5. And lastly, only invest the money that you are absolutely willing to lose.
   Penny stock investing is a really risky undertaking.
   It would really be a big help if you actually have a sound exit strategy if and when your investments turn sour.
   Making short-term investments and then selling as soon as you see a considerable profit is a good strategy to begin with.