Do you know that the giant Microsoft and the copier Xerox, started as penny stocks? Do you also know that there are many penny stocks scams occurring day in and day out? The fact is that the real truth about the best penny stocks falls in between the above two extremes. You may not know what I am talking about and hence I am about to give you a brief about penny stocks. Penny stocks are those stocks that are quoting at prices below the market today, but which have the potential to outperform the market figures within a short time period of say three months or thereabouts. But such stocks are very volatile and therefore investing or may I say trading or putting a buy penny stocks option on them is not for the mild hearted. Trading in the best penny stocks calls for a strong heart and a great deal of knowledge of picking the best penny stocks. Many people say they can pick winners among penny stocks. But the fact of the matter is that they are doing nothing but following the herd. They receive tips from other brokers, who probably may be serving more than one person (you may be one of his hundred clients) who provide tips on share trading in penny stocks. The best tips go to the people who pay him the best. So depending on such tips and putting your hard earned money in them, to see it plummet after some time does not make sense. There are many fly by night investment consultants today, who profess to help you pick winners among the penny stocks, but the truth of the matter is that it is very difficult to time the market and the best method of picking the best penny stocks is to analyse the fundamentals of the company rather than timing the market. This is why even in the current recessionary trend prevalent in the USA, there were certain penny stocks like Cyclatel Pharmaceuticals which posted an 81% growth rate, Integrated silicon solutions appreciated by 65%. However, there is a science in picking the best penny stocks which will provide you with the required appreciation within the target period. But I would like to warn you here, that as you gain appreciably in penny stocks, you are also likely to lose equally. Hence it is said that investing or should I say trading is not for the weak hearted, who cannot take the risk of seeing their money depreciate in the market. Every penny stock speculator should keep one thing in mind, that what has gone up will go down some day and what has gone down today may go up some other day. Following this maxim will help the penny stock trader immensely in selecting a strategy for investment in such volatile stocks. So learn how to pick the best penny stocks and have your hearts thump as your portfolios go roller skating in the stock market rigmarole.