Kingsleymok,

you can definately play in as many stocks as you want. The problem with diversification at a $500 level is that if your stock goes up 5% ($25 profit if you've invested $500), you're going to be charged $19.98 commission for a round trip, leaving you with a profit of $5.02. Now think if you've got 2 positions for $250 each. You'll still only make $25 profit but spend $39.96 in commissions for a net loss of $14.96. Basically what I'm saying is that you really can't afford to do multiple plays for your first trades with $500, unless they go up like 30%+, hehe.

As far as top5 picks are concerned, they change daily. You can't go into this experiment looking for the top stocks. Pennies are a very volitile set of stocks. One may go up 40% one day, but then plummet 56% the next. Many people have different strategies to make money. Some buy after a stock plummets 56% and wait for the price to go up. Others play on fundamentals (company has a product, profit, etc). Others go for momo (momentum) plays, where the stock has gone up 30% and they believe it will continue to go up more. A few people do scans for stocks daily to come up with a watchlist, which they will then post in the forums. You have to remember that in most cases, they will expire after they get played.

If you want to make money at the penny stocks, you need to learn charting skills so instead of asking which picks are going to go up, you can identify them yourself. And remember, at the end of the day, remember to take your profit-before somebody else does.

I hope this helps, I kind of rambled on for a while.

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as a newcomer about to invest in penny stocks, don't make the mistake I did. trade with a paper an pencil first to see how you do. Then, if you make fake money, you'll feel confident to try it for real. If you lose, you can learn something while not risking actual money. Many people will agree that this is a very viable method to learn how to buy stocks.

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