Collect information about the penny stocks company from the internet. Visit reputable websites that can teach you about all aspects of trading. Don't miss the ones offering stock trading simulation software, often known as paper trading. You can also go through various magazine and newspaper publications, as well as in other periodicals. Besides there are many other ways to get more knowledge on it such as purchase of ebooks, stock trading courses, www.stockegg.com or systems developed by successful traders. Make sure if you buy one of these that it has a money back guarantee.