If you are interested in a particular stock look out for any penny stock short sellers. Short sellers have to borrow stock from brokers to sell the stock as they do not already own it. They hope the price will fall significantly so that they can buy back the shares at a much lower price, make a profit and return the shares to the stock lender.

When picking penny stocks via an internet news or information service it help if you refine your search criteria.

Over time you should could compile a list of your own keyword phrases to use. Perhaps you have a particular interest in oil stocks or internet stocks. Base your keyword phrases when searching for penny stocks around hot areas, sectors, products, people and places.

One good way to determine your penny stock selection criteria is to use a news service like Businesswire.com.

This is a news service that collects press releases from public and private companies and then sends out the release on its business wire. Publications can then decide which releases they want to use in their business news sections. As an individual penny stock investor you can also log in to the service and read all the daily press releases yourself. Information direct from the companies.

Gotta tell ya about the TradeSight Small Cap Report.

It really is the business. It’s not cheap but then you get what you pay for in this world, right?

Tradesight have been around for nearly a decade and these guys really know what they are doing.

The emphasis is on training and teaching you how to be a pro investor.

Penny Stock message boards can be very useful to the penny stock investor as they focus on one stock at a time.

Beware though as you will still encounter the problem of other penny stock investors being over optimistic about their own stock picks. Over exited investors will make wild unfounded claims about their stocks potential.

Which online stock broker to pick, especially when you are dealing in penny shares.

There are some great ones out there and we are starting to compile some comprehensive reviews over on our sister site, MarketcapMania.

Penny Stock Chat Rooms can be a tricky place to collect penny stock information.

Sure, you can chat in real time with other penny stock investors, discuss individual stocks, market conditions, recent economic and political events but there are many people who use chat rooms to promote a stock in which they have an interest.

Review penny stock company company filings to assess their financial strength.

Be sure to look at quarterly as well as annual filings of financial information.

But as well as financial information be sure to check for any instances of legal filings and proceedings. Has the company been involved in any legal proceedings, why and what was the outcome?

Just because a company has been sued may not necessarily be a bad thing either.