The best penny stocks can be found most anywhere. Many people assume that they best place to find penny stocks is on the Pink Sheets (and yes they are called Pink Sheets because the paper they are printed on was pink. Most penny stocks can be found on the pink sheets that is why many people often acquaint them with the pink sheets.

However, if you want to trade pink sheet stocks then you no longer have to actually have possession of the “pink sheets” themselves. You can find information online about most pink sheet stocks. When yo are looking for one in Yahoo! Finance of Google Finance just make sure that you append “.pk” to the end of the symbol.

But to be honest I don’t think that the pink sheets are the place to find the best penny stocks. I prefer to look for penny stocks on the listed exchanges, such as, the NASDAQ, NYSE and AMEX. Theses exchanges don’t have as many penny stocks since the listing requirements often require their price to be above a level that many would consider a penny stock. However, I like to buy penny stocks from the exchanges because they the standards for reporting their financials are greater. You never know if what is being reported by a pink sheet stock is actually true.

Now I prefer to find what I consider to be the best penny stocks through my own research. But if you are not comfortable doing that or do not have access to the information that will enable you to do so then I would recommend a couple of others sources.

Many people turn to things such as penny stock message boards, other sites such as this, penny stock newsletters and penny stock stockbrokers. Let’s take a look at each of these in reverse orders.

Penny stock stockbrokers may publish information that you are looking for. Most full service brokerages do not publish research reports on penny stocks. Many of them don’t want their brokers to pursue clients that trade penny stocks. Many online brokerages don’t posses a research department. They will however, provide you with (for free or pay) research reports that are published by research firms. Try to stick with reports from more reputed firms. Some may have an agenda and not necessarily and interest in providing unbiased information.

You can also turn to penny stock newsletter in your attempt to find the best penny stocks. Once again you need to be careful because some newsletters are actually paid to promote particular companies. Their recommendation has to be questioned since they received money in order to give it. Many of these recommendations leaves the readers of the newsletters holding a company without many prospects. Many of these newsletters engage in pump and dump scams.

You can look on penny stock message boards as well. However, I find it very difficult to sort through and find truth on these message boards. One group of people is painting an unbelievably rosy picture and another group is telling your to expect bankruptcy tomorrow. Occasionally you will run across a reputable poster who present a reasonable picture but they are few and far between. I would not depend on penny stock message boards to be my number one source to try to ferret out the best penny stocks.

You can also search for blogs or sites run by other penny stock investors but you need to determine whether they actually have a position in the stock they are recommending. I would expect them to have a position if it was truly a company that they believed in, however, I would like to see anyone that I take a recommendation from to put their trades online so that you can make sure that they are not pumping and dumping.

I believe you need to take responsibility for your own penny stock picks. Do your research, view the charts and educate yourself on what you should be looking for. Don’t depend solely on others. The best penny stocks will come from the due diligence that you do on the companies that you are going to invest in.