Are penny stocks a good investment for the novice trader? They are when “The Amazing Penny” is behind you. Penny stocks are ideal for the beginning trader because of their low cost and high profitability. Our site provides useful information for the beginning trader to help you grow as an investor. What are penny stocks? Penny stocks are companies that trade for less than $5 dollars each, according to the site, which provides information about micro-cap stocks. The best way to learn about penny stocks is through stock blogs, stock message boards, and stock newsletters.