While there are many methods and strategies to trade these low priced shares, the best tip is to do your own due diligence with each and every penny stock. Thus, you can be more sure that you are not simply the target of a “pump and dump” scheme. Companies with small market capitalization and few governing regulations are the playground of manipulative traders. If you are careful and do your homework, you will maybe, just maybe, find a hot penny stock to invest in.