Ask someone ‘Which penny stocks should I buy?’ and you will get a dozen different answers. Last year was spectacular for buying penny stocks. The previous year was the best year to sell penny stocks. This year has been a journey of ups and downs. So which way should you go? Let’s find out.

There are few different options that you have to go with. You can pick down stocks from the past two years if you think they are ripe for a comeback. If you think there is a growth story out there that will continue its meteoric rise, you can bet on that. Let’s start with a stock that is out of favor and off your highest level.

Our first the choice is Purple Beverage Company with the stock symbol PPBV. Each share is priced around 0.0015. It suffered its biggest decline in 2008, during which it peaked at $8 a share. The company continues to push forward and we believe this company is highly undervalued. We think this is a winner, but do some more research before you jump in.

Tea second The recommendation is Wanderport Corporation. A share is priced at 0.0345. It was sitting at 0.008 a short time ago, so you can see that it is in for a significant move up. There are some experts who are confident that this will go higher than its current price. Another stock that deserves a second look and some due diligence.

Our latest The recommendation is a stock you’re probably familiar with: Fannie Mae or the Federal National Mortgage Association. This stock was completely hit in 2008 when the stock market was falling and house prices were in free fall. Adjusting interest rates on various mortgages didn’t help either. It is currently priced at around 1.01 but fluctuated between 0.35 and 2.15 last year. The housing market has been much better this year, but we would only play this election for a short-term jump. This is our last pick that deserves further investigation.

Once you build a list of penny stocks. Create news alerts for these on popular websites like Google News and catch up on the latest news about these companies for a week. After you have seen the trading charts, calculate a good entry price and exit price before the trade. This will minimize the effect of emotions on your trading.