All rights reserved. It has since been updated and republished. The definition of penny stocks is entirely subjective. What I think constitutes a risky penny stock, you might feel is a robust, thriving enterprise. Others are more liberal in their interpretation of what constitutes a penny stock. Treat penny stocks just as you would any other publicly traded investment, and your chances for success increase exponentially. This is especially true when it comes to penny stocks, many of which are still in the early stages of development. Therefore, the ability to exit quicker justifies the higher risk many in this arena are willing to accept to generate outsize future gains. It really comes down to your ability to handle uncertainty. Stick to what you know and understand. How many penny stocks should you own? What I do know is that you want to be in at least three or four sectors of the economy that generally are healthy and growing. As of this writing, Will Ashworth did not hold a positio...