Here's my suggestions:
1. PLAY ON PAPER BEFORE YOU "PLAY' WITH YOUR HARD EARNED MONEY! Penny stocks are a crap shoot, so don't invest in them unless you are OK with losing all your money! I think of penny stocks as being the same as going to Las Vegas... Don't gamble with any money that you can't lose and also chalk the experience up to "having fun"...
2. Spread your "bets" around so if you lose half your plays hopefully the other half will make up for the losers!
3. Be prepared to hold some of them for a long time if you don't like to sell at a loss. Remember those folks that used to talk about using old shares as wall paper...
4. If you are lucky enough to be holding a stock that is going up fast; immediately put in a sell at a higher price for at least half of your position for two reasons. One, if it "fills" on the way up you will get your price during the price rise instead of chasing the falling ask price (trying to sell) during the dropping price which usually results in a big loss or percentage of your gain! Stocks go down MUCH FASTER than they go up! Two, If you get your initial investment back you can then afford to "play" with the additional stock!
5. Before you invest, calculate the TC (true cost)! Use the pps (Price Per Share) calculation of doing a trade to determine how high the stock has to rise before you EVEN make a profit, then ask yourself if the risk is worth the gamble.
TC = [(pps x # of shares) + (BOTH buy & sell comm.)] divided by (# of shares)
(i.e..
Say you are thinking about buying 10,000 shares of a PENNY stock that looks good to you. Figure that it is going up because of good news and you want to buy it at $0.005 (and you pay BOTH $10 to buy and $10 to sell as your commissions). Lets do the math, to see what the stock has to do before you make any money. [$0.005 x 10,000 + $10 + $10] divided by 10,000 which equals ($50 + $10 + $10) divided by 10,000 or $70 divided by 10,000 or $0.007 as your pps! So the stock has to increase to at least $0.007 BEFORE YOU BREAK EVEN!
Now lets say you want to make about 10% profit on your "bet", what price does the stock have to go up to, to do that? $70 x 1.1 = $77, so let's round it up to $80.00 and divide that by your 10,000 shares which equals $0.008. So just to make about 10% on your stock "bet" the price will have to go from $0.005 to $0.008... Are you now thinking twice about making that trade or "bet"? GOOD.
Now consider if you bought more shares (say 100,000), how would that change your buy or NOT buy decision? Using the above math, now the pps is $0.0052 instead of $0.007 which is much better! Now let's add the 10% profit and then it becomes [(100,000 x $0.005)+$20] x 1.1 = $572 divided by 100,000 shares or $0.0057! Therefore a price move from $0.005 to $0.006 would give you your 10% profit! Also if it went to $0.008 (like discussed in above smaller purchase) then you have about 54% profit!
($0.008 x 100,000) = $800 - $520 (initial investment) = $280 GAIN
$280 divided by $520 (initial investment) = 0.538 or 53.8%
Remember also that you are "gambling" 10 times as much money and if the stock goes down then your losses will be greater!!!
Good Trading!
Remember: If you don't plan ahead, you'll end up depending upon someone that does... 
Penny stock investing... any winners care to share tips 
Some members here may contest to this, but it is my opinion that, in general, the cheaper the stock the less predictable the price is. Sure, you can see a several hundred percent increase in price in a matter of days, but it can also fall just as fast. 
Re: Penny stock investing... any winners care to share tips 
Re: Penny stock investing... any winners care to share tips 
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