I know that you are not going to hear a lot about penny stocks when you watch CNBC, but that shouldn't make you shy away from trading these investments. Sometimes you have to do the opposite of what the herd is doing. Here are just some of the benefits of trading penny stocks.

Volatility: These kind of stocks are way more volatile than the value oriented large cap stocks. For those of you who are more risk averse, this is probably a bad thing. But for those of you who are more adventurous, this is definitely a big perk. It's the old "risk vs reward" argument.

Bigger piece of the pie: When the price of stock is less than the larger cap stocks, then by definition, you are able to buy more of it. You are able to get a bigger piece of the company. More shares means you earn more for each move.

Cheaper way to build a portfolio: If you are planning on getting a diversified portfolio of blue chip stocks like Apple and Microsoft, then I hope you have deep pockets, because most people aren't going to be able to afford that. But with penny stocks, even the most financially challenged amongst us can build a portfolio.

Buy low, sell high: The cliche is as old as the market itself. But you can't get much lower than prices of these kind of stocks. You just have to know which of these cheap stocks you should be buying.