Chances are its already too late to invest in a particular penny stock if you’re hearing about it from a friend! The best penny share tips will no doubt come from you performing your own due diligence so it is time to get started!. Whenever you are looking into different companies to invest in there has been research done that shows that investors from all different levels of expertise take mental short cuts at a time when they should work through and consider all options extensively!Let’s take a closer look.Some researchers have done an interesting study which showed that it doesn’t matter what type of investor you are, but when shares are listed on the stock exchange for the first time in an IPO, stocks that have names and a ticker symbol that are able to be pronounced easily tend to perform much better in the short term than stocks that have difficult names! This may seem a ridiculous study to talk about but it highlights one important fact when it comes to investing; emotions and psychology play a huge role in your investment decisions and those who have some experience investing in the stock market already know this!What I am trying to establish is that in order to become successful trading the penny stock market then you need to make certain you can keep your emotions under wrap as the attraction of large profits can sometimes cause you to act irrationally and lose money, sometimes your entire investment.Always perform your due diligence before investing any of your money into any stock and never buy a small cap share tip that you may receive in a spam email or a hot tip from somebody over a coffee without first checking to see if it’s viable. Sometimes the management of various penny stock stocks can try and create undue hype about the share to try and mislead investors and you end up holding worthless share that you’ve made a loss on.. Although if you’re after a little bit of fun, keep an eye on IPO’s and if you find a stock with a catchy name then it would never hurt to make a very small investment and see what happens!