Penny stocks will make you rich if you know what you are doing. If you are a savvy investor who knows the innards of micro/small-cap companies, you will be a millionaire in less than ten years. The problem is that it is extremely risky, no doubt. However, there are investing advisors out there who can guide you in picking penny stocks. We all know that penny stocks are highly volatile, correct? In other words, the stock price will swing rather quickly and it seems obvious that the best method of capitalizing on this price swing is to sell when the shares are high. Do not wait to see if the stocks will go any higher. So for example, if the share value is at one cent(there are many companies that sell at a penny), and if it goes to two cents(this happens if you are careful!) sell it quickly. Never, EVER, place market orders. The size of bid is usually extremely small, and many people would want to buy it below the market value. So place limit order, and try selling it a little above the market value. Surely, there will be some people who are willing to buy it. Furthermore, if you are a patient investor and want more than double the original price you invested, imagine what it would mean if your penny stocks sky-rocketed to 10 cents. YOU JUST MADE 10 TIMES THE MONEY YOU INVESTED. Or how about if it sky-rockets to 100 cents. THAT MEANS A THOUSAND DOLLARS IS NOW WORTH A HUNDRED THOUSAND DOLLARS. And what if it goes to 10 dollars. YOU ARE A MILLIONAIRE! And you only invested a thousand dollars! Can you believe that. Remember, the key is to diversify. Put most of your money in companies that are stable. Invest in comapnies like MSFT, JNJ, T, etc. Use what's called dogs of the DOW for most your stocks. But GAMBLE AWAY thousand dollars, because some day that thousand dollars might be worth a million. Just remember, Microsoft was a penny stock once upon a time. At one point in time MSFT was selling at almost 60. Just imagine what it would mean if you bought shares at a penny and sold them at $60?? Congratulations, you just made 6 million dollars!!!!!! P.S. Don't forget to thank me. P.P.S Don't blame me if you lose your money either. You can either win big or lose big. But 10% of your portfolio isn't a bad idea. P.P.P.S Also, if you want to fight inflation, invest in TIPS. It's fixed investment, but at least you're getting back what your money is actually worth. Try it and you won't regret it.