Welcome to the most comprehensive educational book on penny stocks trading available in the market today. The goal of this book is to supply the novice investor, along with the veteran trader, with all the information he or she will need to be knowledgeable in the realm of penny stock trading. This book can be used as a foundation for those investors who were always curious about trading in penny stocks, but did not know where to start. We have focused on explaining the necessary concepts and terms in an easy-to-understand language so that individuals lacking a formal financial education benefit as well. We begin by exploring what stocks qualify as penny stocks, the exchanges that they trade on, and why an investor would potentially be interested in exploring this segment of the market. We then provide a toolkit of specialized websites that you can utilize to locate penny stocks that warrant researching and forums to exchange ideas on. You will learn about the fundamental ratios and metrics that are used to classify and value penny stocks. Several chapters are devoted to exploring the inner workings of micro-cap companies, the challenges they face and the potential rewards for shareholders of successful companies. We lay out a start-to-finish roadmap for effectively researching penny stocks, and explore many special situations that you will encounter on your journey. Much time is devoted in helping you to recognize events and situations that can negatively impact the value of a penny stock and common pitfalls novice investors make. We conclude the book by explaining in detail 13 specific strategies that you can use when investing in and trading penny stocks.