Most individual investors look at penny stocks like Wall Street's Wild West, an untamed world of investing detached from all the glitz and media coverage that comes with stocks that are traded on major exchanges. Wall Street's Wild West, an untamed world of investing detached from all the glitz and media coverage that comes with stocks that are traded on major exchanges. These exchanges have strict listing requirements, and while they might not allow for as much of an upside as \"true\" penny stocks can, they tend to be more reliable. SEC has taken such an active role in making sure that the American public is protected from unscrupulous companies and individuals in the penny stock arena. For your broker to even sell you a penny stock, they're legally required to send you a document outlining the risks of penny stock ownership. Message boards, chat rooms, discussion groups -- even advertisers on legitimate websites -- are all home to their fair share of the stuff. That's because the penny stock world is home to \"shell\" companies that are legally incorporated, but don't have any business operations. Shell companies are a great opportunity for scammers, because they can be easily set up as a \"pump and dump\" stock. Look for companies with real, sustainable business operations and you'll be one step closer to finding a good penny stock. I’ve turned $12,415 of my bar mitzvah money into more than $4.2 million in trading profits. I like to challenge myself, but I’ve already reached my goal of becoming a millionaire. If you’re somebody who can study penny stock trading full-time or somebody who can only free up an hour or two a day. If you’re a total stock trading newbie or somebody who already understands trading fundamentals. As long as you’re willing to work hard, you can succeed using my strategies. Penny stocks are thinly traded, and they can be hugely volatile. I’ve put on some weight. Well, not just some. I’m up 50 pounds because I’ve been prioritizing the work I’ve been doing to help others over my own health.