Peter Leeds

While intellectual property plays a major role in any company's strategies, it becomes even more significant for penny stocks and smaller players.

Peter Leeds was an actor who appeared on television, Broadway, and movies from the 1940's until the 1970's. He worked with notable celebrities and his appearances were seen by millions. This wouldn't really affect me at all, except for the unfortunate fact that we share the same name.

Hedging is a simple concept, but it can be as complicated as you want to make it. Some penny stock hedging strategies get so involved that you could wind up with a chain of six different investments, just to protect every aspect of your approach.

There are literally thousands of trends taking shape or underway right now, all around you. If you pay special attention to look for such shifts in society, you may spot a trend or two, and from that may position yourself to profit from your penny stock investments.

What makes two different investors get different returns from the exact same penny stock over the same timeframe? Great investors are like great Quarterbacks - they find a way to win. Bad investors are like bad Quarterbacks - they find a way to lose.

By gaining an understanding of the various players in penny stocks, you'll be better suited to avoid some of the pitfalls, while finding higher-quality investments for your portfolio. Just remember, there are a lot of hidden motivations in the low-priced stock world, and you don't want to become a victim to them.

Before you invest in a specific penny stock you've been watching, here's a quick acid test from the penny stock pro, Peter Leeds, to see if the shares are worth your time and the risk.

When trading penny stocks, you stand to enjoy greater returns, and suffer smaller losses, by scale in and out of your trades.