People like Warren Buffet, have popularized the strategy of investing long-term in stocks to get better results or better returns. But this policy or strategy will only work for people who have the holding capacity of say a Warren Buffet, or say a Jack Welch. However, there are some people who wish to make short term gains from the trading of penny stock. These are called as speculators or day traders. They do not have the holding capacity to hold on to a particular penny stock for a long time due to the inherent nature of their balance sheets and cash flow statements. It is their business to buy penny stock when they are at their nadir and then sell them for a handsome profit once they have attained a slight appreciation in their valuation. They are not people who have invested huge amounts in blue chip stocks like AIG, BAC, C, SIRI, LEH, etc. which have all crashed thanks to the current recessionary trend on the NASDAQ. Today there are many websites which give stock alerts for those people who are looking for huge gains on their penny stock. The above mentioned website has the largest number of members and that makes it the most potent website for picking the right penny stock. You will be surprised to know that penny stock follow certain patterns that if spotted early can result in huge gains for the retail investor. In trading parlance it is called thus: Bulls make money, bears make money, and pigs get slaughtered. This is to indicate that whether you are a bull or a bear you will gain at least something by investing in the best penny stocks in the short term and those people who invest in the best penny stocks for the long-term are the pigs who get slaughtered. Investing in penny stock represents the no-nonsense raw style of investing in stocks. Only best penny stocks provide the best chances for big gains in the market. Imagine you can see the best penny stock moving up by 100-300% within a day of trading in them. Examples of some of the best penny stock that went up appreciably within a short time span are CTIC up 320% in three days, EXM went up 70% in one day, DRYS went up 160% in 15 days. Have you ever witnessed such short term growth in blue chip stocks? The answer for that question is a big no and so I would advise you to pick the best penny stocks and invest in them for the maximum gains in the shortest possible time. Day traders usually pick up the best penny stocks cheap and when they appreciate within say a period of 1-3 months, and then they dispose off those stocks to make neat gains. They do this as they do not have the holding capacity to follow the strategy propounded by Warren Buffet.