Beware of "pump and dump" schemes on social media. If everyone is suddenly screaming about a "hidden gem" on Twitter or Discord, you might already be too late to the party.

A stock might look like it's "up 50%," but if only 100 shares were traded all day, you might not be able to find a buyer when you're ready to sell. Check the to ensure people are actually trading it. 5. Follow the "Rule of 1%"

The price could jump 10% in the seconds it takes to process your trade.

Getting into penny stocks can be a thrill, but it’s definitely a "high-risk, high-reward" game. Since these stocks trade at low prices (usually under $5) and have smaller market caps, they can be incredibly volatile.

Not all platforms are penny-stock friendly. Some charge high surcharges for "OTC" (Over-the-Counter) stocks or have restrictive rules.