People can lose money and everything they invest in Penny Stocks. I prefer to see anyone who be careful and serious about buying penny stocks, are the successors.
What you need to do is take it step by step because there are a lot to learn about buying penny stocks. Imagine that you go to school and learn lessons from teachers when you graduate, that's the time for you to step into penny stock's world.
First, collects documents, books, articles from internet (or get advice from anyone who get experience).
Dive into these knowledge may take your time and boring but this is the best way before get started buying penny stocks. Don't need to touch complex strategies now if you still be a beginner (slow step). Start learning penny stocks basic info such as what penny stocks is, where you need to buy penny stocks and why you should buy penny stocks.
You may begin to receive penny stock newsletter. A newsletter can save your time and send what penny stocks they believe are useful for you to read.
Carry out your own research too. Knowledge from the reality is the one of the biggest things that make you be a successful penny stock investors.
During learning, you should collect what you need to buy penny stocks. When you are ready, you can step into penny stock market.
When you are confident enough you should test your trade skills. Record your trades on a notebook or you can use a stocks simulator website where you invest with fake money Champion Investor website. It can calculate about profits and losses and gives you the chance to test your skills against other investors throughout the country and win major prizes. (It's absolutely FREE TO ENTER.) <-[info from that website-22/1/2011]
If you make profit from your test, it's like you get 80/100 points in your test. Level up! You may be ready to use your money through a stock broker.
Source: Buypennystock, EzineArticles