I traded penny stocks off and on for a number of years. After loosing thousands of dollars I decided to research on how to effectively trade penny stocks. I've come to one method that is almost a sure win every time. With some patience, and doing your own diligence this method will only make you money. Here goes.
Find those penny stocks with potential that have a decent trading base (high volume trading). Watch them carefully until the drop to .0001 to .0002. Buy in at least at .0002. Don't buy in higher. You may watch the stock go from .0001 to .0002 for a month or 2. One day they will put out a simple PR News. As soon as the price goes up (usually goes around to .0005 - .0009, then sell. This is an effective method.
I recently followed my own advice and bought IMTV at .0002. PR News came out last week and I rode the stock up to .0009 and sold. Made a quick $2,400 profit. This really does work.
NEVER buy a penny stock when it is already going up quick. If you do buy in while a penny stock is going up fast chances are you will loose a lot of money. Patience is the key and buy in at the .0001 to .0002 range - PERIOD. Do this and you will succeed with penny stocks. Good Luck and I hope you greatly succeed.
(image off of google imaging)