If you can think a little outside the box, then having a penny stock list could be a HUGE plus for you.
However if it's in the wrong hands, then it could be a disaster.
From a trading perspective there isn't really that big of a distinction between the enormous companies like Apple, and the small cap penny stocks.
They both require the proper kind of analysis and you have to know when to jump in and when to stay away.
But if there is a difference between the two is the sheer potential that the small cap stocks offer to low income traders.
For example, if you were to invest in Wal-Mart, it would be a low risk venture, which is good.
But chances are, they would be a low return venture as well.
You won't lose sleep over it but you are not going to become rich from it.
This is why so many traders who are already rich invest in Wal-Mart.
They just want something that is slow and steady with returns.
That's what established companies provide.
It's the complete opposite when it comes to penny stocks.
As long as you learn what you should do and what you shouldn't do, then the potential can be seemingly infinite.
Sure, the majority of small companies end up staying small, but all you need is that ONE stock that comes from nowhere and ends up being a prime-time player in the stock market.
Every single year, there are a few that just explode.
All you have to do is now which ones that are going to be.