Pro: Since 2000 the micro cap (penny stocks) and small cap stocks have outperformed larger stocks in the market. In particular, micro cap stocks traditionally outperform large caps during a recession and early stages of a recovery.  In other words, now is the perfect time to trade penny stocks.

Con: Micro cap stocks are usually listed on the Over-The-Counter Bulletin Boards (OTCBB) and do not have to meet minimum listing standards that the larger caps must in order to keep their listings on the major stock exchanges.  So it’s harder to find financial information about them.

Pro: Penny stocks offer a way to make money fast without a major outlay of your hard earned capital. They sell for very little per share, usually under $5, and often for pennies. So if you have very little money to get started trading you can get more bang for the buck and can lay the foundation for a good second income by trading penny stocks.

Con: These stocks can be thinly traded and volatile. If you have a fear of risk then micro-cap stocks are not for you.  Thinly traded means you may not be able to get out of a bad trade very fast.  In fact if you can’t find a buyer you could see your trade go south very fast and you could lose all the money you have in a trade.

Pro: Returns of 50%, 100% and 1000% and more in a day even an hour is a common occurrence.  So making fast money does happen for many traders.

Con: Researching penny stocks is difficult. Traditional technical analysis and fundamentals can provide very little clues to predict these huge gainers.

Pro: Research has proven that 7 out of 10 stocks that do gain 100% or more do so because of stock promotions. These are necessary to get the word out to the public about the company. Some micro cap stocks are simply small companies working hard to grow their business with an end goal of making it to the larger markets.  Which is a good thing.

Con: It is difficult for the regular investor or trader to tell if the promotion is legitimate or not. Sometimes they involve companies that have a poor business plan, a product that has no demand, and some companies might even already be headed for bankruptcy.

Pro: There are many established e-mail newsletter services that provide the in-depth research that uncovers the hot micro-cap gainers for you and that give you all the information and support you need to make an intelligent micro cap trading decision.  These newsletters are frequently used by traders to help them keep the emotion out of a trade, which could be deadly.  They use the newsletter services to do all the work finding and researching the companies and giving them the entry and exit signals so that they can make a calm decision on whether or not to trade.

Con: Without an advisory newsletter service finding the hottest penny stocks takes a lot of time for the average person to sort through all the information and confidently find the stocks with the potential to gain 100% and more.

For penny stock trading to be successful it is advisable to seek out the inside advice of a professional e-mail newsletter service. These organizations help the traders and investors to eliminate some of the cons of micro-cap trading. They provide the critical in-depth research necessary to uncover the most promising micro-cap stocks and free the trader and investor to concentrate on intelligently trading the best stocks for their particular situation.

If you’re ready to double or triple your money and get three FREE stock picks too boot then visit Microcap Millionaires.    Members of Micro cap Millionaires are realizing 40 – 250% gains on their investments.

And, Matt sends those plays to his paid members along with buy and sell signals so you know exactly when to get in and when to get out.

Paid members receive email alerts as well as tweets from the “members only” twitter feed.  Members appreciate the speed of twitter and also the indepth analysis that Microcap Millionaires provides.

Go to Microcap Millionaires Official Website 

The basic strategy is to find cheap penny stocks – aka micro cap stocks - that are ready to move up and move up big.  Most of the picks are in the very low price range, usually pennies, but sometimes up to $5 a share.

There are a number of microcap systems that are incorporated into a Microcap Millionaire trading strategy.

For example:

Sub-Penny Stock Alerts.  These types of penny stocks have the potential to mover over 100% in a few short days.   Microcap Millionaires scans for these on a consistent basis because these types of stocks can just pop up at any time during the trading day.

Bottom Bouncer Alerts.   MM finds stocks that are oversold and close to hitting the bottom before bouncing up.   These trades can be immensely profitable.

Penny Pump Finder Alerts.   Watching the moves of the pump and dump operators  MM sends alerts when there is an upcoming promotion and uses that information to make the trades profitable for its members.

And there are other strategies as well, like dividend plays, reverse mergers, etc.

Go to Microcap Millionaires Official Website

Independent research shows that Microcap Millionaires lives up to its claims and Matt Morris, the developer of this service, stands behind his service with a firm and liberal guarantee.   Support from Microcap Millionaires is also excellent.

New traders are provided in-depth instructions so they can understand the trading plan and strategy being used.  Video instructions are also provided.

Overall Microcap Millionaires is a superior trading system.   It is recommended for traders of any level.

Go here for more information on Microcap Millionaires

I have learned from some of the members of Microcap Millionaires that you really can make a fortune in penny stocks. And, some people really have become penny stock millionaires.   But you won’t make a fortune buying one or two penny stocks and then holding on to them until the company becomes the “next big thing.”  No, you make money, lots of money for some folks, by trading lots of penny stocks very quickly.

So to do this type of trading you really have to have guts.  You have to take all your emotions out of the trade.  It is so easy to think, “WOW I just made a 25% return, let me hold on to this stock and see if I can turn it into a 100% gain.”  Thinking like that will get you slaughtered….like a pig.   So keep that in mind when trading penny stocks.   Take your profits.  Get in and get out while you are ahead and then move on to the next stock.   Maybe that stock will go to 50 or 100 percent but you have no way of knowing that.  Take the money and live to trade another day.

You don’t “buy and hold” ; you “trade” your way to becoming a penny stock millionaire.