But where to go to find the latest hot stock to make money. Well there are many different websites that offer to send stock alerts to your e-mail. These websites are nothing but a bunch of penny stock chasers. These websites (not all of them) are known to use what is referred to as a “pump-n-dump. A practice that has been used for many decades, but that is for another post.

I’ve use some of these sites to do research on the accuracy of their picks. I’ve found that in most cases, stock stock in question will go up in value by more than 10% to 50%. The problem is that the price per share won’t stay there for long. The early investors who got in on the stock before the herd start selling their shares which in turn bring the price per share down trapping the average investor in the stock or having them take a loss.

If you’re able to be home or in the office watching the stock streamer all day, you can capitalize on the situation. If you’re not able to do that, I suggest you stay away from trading in these stocks.

If you’re looking to make money on the next big growth stock, you need to find the company that will bring the next best product to the market that the industry is looking for. Right now there are plenty of alternative energy companies out there that are just about to explode. Start doing research into many of these companies to see if they have what it takes to go to the next level. Once you do, build a position in the company’s stock. The buy-and-hold strategy will pay off in the long haul if your research is correct.

In my opinion, if you’re new to the stock market and don’t have a total grasp of it all (or at least most of it), I say stay away from trading or investing on penny stocks. You can make a lot of money, but you can lose just as much if not more of your capital.

T Boone Pickens has been heavily playing in the wind power energy market. He is investing in the Texas wind power fields that will be started in the near future. Companies that are in the alternative energy sector have been moving quite well, but that does not mean that every company is moving forward.

Wind power energy is not a new concept, it’s now moved to the front of the line because of the rise in oil prices. The industry is make strides in new technologies as well as investors who are willing to back the company financially for research and development. If you want to make big money in the stock market, this may be the sector that you need to look into.

Some of the companies that look good are ones that have patents on their designs. That’s considered intellectual property which adds value to the company. Different companies do different things in the field. Some are manufacturers while others are installers.

Many of the manufacturers will only deal in one aspect of the wind power industry. While one may build the turbines for the towers and another supplies the cable to transfer the power, you’ll need to know where they stand in the grand scheme of it all.

In the solar power industry there are many stocks that are considered penny stocks. The technology is not as efficient as wind power so there are more companies that could fail in growing. In that field there are new and less cost effective methods being done that a smaller company may be able to grow.

So when you are thinking of buying penny stocks, look at each company carefully and choose wisely.