Richard Saintvilus and TheStreet's Cherella Cox discuss the dangers of pump-and-dump stocks and what to watch out for in penny stocks. Whether you are green or seasoned, Saintvilus advises investors to do their due diligence with vigor. Similar to the research one does when buying a house, if you are buying a stock, you should study the company's CEO, quarterly and year-over-year earnings and at least the fundamental before you make any moves. Saintvilus, a writer for TheStreet, also runs his own Web site, Wall St. Playbook.com.

Disclosure: TheStreet's editorial policy prohibits staff editors and reporters from holding positions in any individual stocks.

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