Buy them before promoting. The best way to invest in penny stocks is by buying them before they are heavily promoted and hyped up in price.  Heavy promotional campaigns are important to penny stocks. Penny stocks are typically not covered by analyst. As a result, penny stock companies have to rely on heavy promotional campaigns to get the word out about their stock. If you get into the stock at the early phase of that promotional campaign, you could make a fortune.

Many penny stock will explode with in  few months of promoting.  If you check the history of penny stocks, you will find that most of them were trading at a decent price 15months before. However hard the market slams a stock, there’s always a chance the company will address its problems, perceptions will change and its share price will come storming back.

Buy the stock at low prices and wait for the price to rise so you can cash out big. Remember for  every stock, you should have an exit strategy.