Playing the pennies is a term sometimes used to describe what investors in penny stocks do whilst others describe them as gambling. Money Soldiers have a website that describes in more detail about what penny stocks are but basically, penny stocks are shares in companies which are too small to ask for a high price for their shares and so are often only a few pennies per share but can be valued at up to $5 or more. The companies that offer these low value shares for trade are usually themselves worth less than $5 million and so are not considered big enough to trade their shares on the larger, better known stock markets like the NYSE or NASDAQ. Of course though, investing in penny stocks is similar to investing in the main stock markets in so far as the idea, in order to make money, is to buy shares when they are cheap and then sell them when they hopefully become worth more. That perhaps though is where some say the similarity ends as unlike companies which trade on the main stock markets, penny stock companies are not bound by the same rules which are laid down by the Securities and Exchange Commission. One of these rules is that a company wishing to trade its shares on the large stock markets must provide and update information about the company so that potential investors can know what they are investing in. As smaller companies do not have to do this, investors in penny stocks are often investing blind, not knowing anything or very little about the company whose shares they are buying. The smaller valued shares, penny shares, are often more volatile than the more expensive shares and so it is possible that shares worth only 8cents, could rise to $8 very quickly. This is what penny stock investors hope will happen to the shares they buy but the unfortunate truth is that that is rarely the case. It is considered that out of all the many people that invest in penny stocks, only 10% profit from their investments which means, 90% of penny stock investors lose their money. Of those that do make a profit though, many go on to invest in the larger stock markets whilst others, few others, go on to become penny stock millionaires. Investing in penny stocks though is fairly popular and probably the main reason for that is that it only requires a small amount of capital to start investing in them, perhaps as little as just $50. Although there are many more people that would like to invest in the large stock markets than currently do, they cannot because they do not have adequate funds to start and so that is why they opt to buy penny shares instead. The bottom line is that although penny stocks can earn you a profit, you should be prepared to lose your money as most people do however, you will learn about trading shares and may even become the next penny stock millionaire.