Penny stocks provide investors with an excellent opportunity to buy shares of stock for cheap. However, the market is very risky and can cause the most skilled investors to lose a significant amount of money. To help new investors reduce their risk and make a profit, here are some of the best books on penny stock trading. 

Invest in Penny Stocks: A Guide to Profitable Trading
Peter Leeds is a penny stock professional who helps traders uncover undervalued stocks with strong management teams and proven revenues. His book helps novice penny stock traders find small-cap companies with little exposure to sudden downswings in price.

Leeds uses a combination of technical and fundamental analysis to help investors find value in penny stocks that are poised for a breakout. Leeds believes in “finding value in companies not seen by others.”

The Small-Cap Investor: Secrets to Winning Big with Small-Cap Stocks
Ian Wyatt takes novice investors on a journey to find small-cap stocks (less than $2 billion market cap) with significant upside potential. Wyatt carefully explains to readers what to look for in a penny stock and whether or not it is worth buying.

He wants his readers to find the companies poised for a big run that is just under Wall Street’s radar. Wyatt provides an eight-step investment process that shows readers how to research, analyze, and find small companies.

Day Trading for Dummies
Day trading is a popular way for investors to make a profit by trading stocks daily. However, only the strongest and most skilled day traders survive. This book helps novice investors navigate through the feast or famine world of day trading.

From traditional trading strategies to renegade trading, this book covers a variety of methods investors can use to make money from day trading. Whether someone is ready to risk everything on penny stocks or use a safer approach, this book has it covered.

The Guide for Penny Stock Investing
Although the book was first published in 2000, many of the penny stock trading principles outlined in this book are still relevant. The book approaches penny stock investing practically by teaching time-tested strategies successful investors use. The book contains examples of penny stocks that delivered 1,000 percent or more in returns in one year.