Buying penny stocks can have great potential,that can be either good or bad. You can double you initial investment in no time, but lose it just as quick. When I say double or triple your portfolio you may think that it's not easy for that to be done.

Think about it, you have 100 shares of a company (we'll call it XYZ) that are price at $1. That makes your portfolio worth $100. The company has annual revenue at about $100,000.If that company goes ahead and increases their revenue three fold to $300,000 per year. The stock of the company typically will go up about the same percentage. Now your portfolio is worth $300

For small companies to increase by large percentages, it won't take much for that to happen. A new contract from the military can do that (like what happen to MMGW). For Exxon-Mobil to do that they would have to increase annual revenue by over $7 billion.

Penny stocks are very attractive to most amateur traders. That could be because of the "cheapness" of the stocks. You can buy 5000 shares for as little as $50. More Google searches are done for penny stocks than blue-chips and dividend paying stocks combined. It's amazing to see that more people would want to trade penny stocks than trade commodity stocks. the volatility is just as active, but with penny stocks, you're dealing with companies that have no proven track record for the long haul.

The average "Joe's" of america want to hit it big. They want to hit the lottery and buying penny stocks gives them that same feeling as going the horse track or even Las Vagas. The problem with that is that means they're playing with their emotions involved. That will do no one any good. trading in the stock market when your emotions are involved can only lead to poor decisions.