Penny stocks are traditionally a very poor investment vehicle. Think about it: there is a reason the stock is at $0.08 a share. If the stock were worth anything it would have been bought by value investors and the price would go up. The reason its so low is because nobody is willing to touch the stock. It could be worth nothing in a few weeks.

Its the gamblers fallacy that makes people think it "must go up". It can go down and it can go away.

I'm not saying that people shouldn't take risks, just realize it isn't a sure thing. Don't risk money you depend on and can't afford to lose. Don't expect to make tons of money. If you do profit, be pleasantly surprised. Buy and hold would be the best strategy - a long term investment.

When AMR was trading at $4 a share I almost bought 2,000 shares. I wish I would have because within 2 weeks it was trading about $12 a share and I would've made a good lot of money. But a penny stock is a big difference. There is a reason for the price...the market has factored in all the relevant information into the value.

But it is a good opportunity to give investing a try if you have the money to lose.