[Nick1984]

Dont buy into the penny dreadfulls if your wanting to trade actively. The volume on these stocks is very weak so getting out may be a problem. I've usually found that it's better to hold on to them for a long time and let the price advance on its own if the fundamentals are right.

For the penny's i look at the fundamentals of the company. Its P/E, Div ratio, Board of Directors etc. cause if these companies dont perform they are doomed.

As for searching I search out by sectors first then narrow it down to specific companies. My critera is usually to have the stock at a minimum of 30c and a maximum of $2 per share with a minimum turnover of $120,000 a day on average.

Have your own set of rules in picking these stocks and make sure you do your homework cause you can loose a lot of money very fast, especially in Biotech stocks and Mining stocks.