Penny stocks are considered a riskier investment than traditional stocks that trade on the NYSE, the NASDAQ, and the AMEX. However, there is a way that you can drastically reduce your risk trading penny stocks and allow you to make really good money in the process. It is a strategy that I have personally used and have found it to be quite profitable.

Before I tell you the strategy, there is something very important fake money for sale online you need to understand first. Researching penny stocks is very different from researching a traditional stock and it is also much more difficult to do. Even if you are an experienced trader, you need to understand that it takes a different set of skills to pick a good penny stock, know the exact time to buy it, and know the exact time to sell it.

People who are good at picking profitable penny stocks don't use the same techniques they would use to pick traditional stocks. Analyzing fundamentals is far less important. In fact, fundamentals for a penny stock are usually basically worthless. Penny stock research is best done by people who make good detectives or investigative reporters because this is the kinds of skills you need to become really successful at picking penny stocks.

Considering the above, it is probably not a good idea to try to pick penny stocks by yourself, regardless of whether or not you are an experienced trader. Unless you are ready to turn it into a full time career AND you have that "Columbo" (or Monk) knack piecing together clues that no one else seems to be able to see, you'll probably never get good at these types of stocks.

However, you do not need to be good at picking penny stocks to make good money with them. In fact, you can trade them with very little risk and almost guarantee that you'll make money. This is true for complete novices as well as experienced traders.

There are people with a very special talent for picking penny stocks. Some of these people offer a subscription service where they send you their picks if you subscribe. These include the actual stocks to pick, when to buy, and when to sell. Some services will offer additional information as well. Most of these are weekly picks but some are more sporadic whenever they find a good one. If you subscribe, instead of trying to guess which ones to pick, you can trade their picks.

I do want to mention that these services do cost a nominal fee, usually a monthly fee. There are supposed "free" services but I will tell you that GOOD picks do NOT come for free. Good picks are extremely valuable information and represents a great deal of specialized research that only a few people are really good at. You should beware of people claiming to give you picks for free. fake money for sale online Reputable traders will sometimes give out picks for demo purpose but they are usually old picks and it definitely won't be their best picks.

Now, here's the key to my strategy. It is very important to find out if the stock pick service you have subscribed to is a good one as there are scam artists out there. So, what you want to do is first subscribe to the service and begin getting the picks. Next set up a demo account and start "trading" the picks you are getting in the test account. This will allow you to test if the picks you are being sent are good picks and how much you would have made had you used real money.

Once you have tried several picks in the demo account and convinced yourself these a good picks (because you're making good fake money in your demo account), you can start trading the picks you are being sent for real. This will minimize your risk and almost guarantee you'll make a lot of money.