If you're short on the funds to invest, buying into penny stocks might be the way to go.

The main advantage of penny stocks is their low pricing. Because of that, even tiny changes in the price can bring you mega-profits. Having said that, you may need lots of patience with a penny stock, and if it is thinly traded you may need plenty of time too, to extricate yourself from the position. This is because with thinly-traded stocks you can single-handidly bring the price up or down, there simply aren't enough buyers and sellers.

Stocks that are low in volume are difficult to trade, but penny stocks with a reasonable volatility and volumes of trading are great hunting grounds for day traders.

Day traders tend to execute many trades as they go for multitudes of small profits. Because of that, it is absolutely essential to keep the trading fees to a minimum because each commission eats into your profits. The safeguard the profits, go with the penny stock broker with the best pricing structure for your style of trading.

A word of warning: always read the small print because some brokers apply additional fees for stocks with the cost per share under the prescribed threshold.

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