| The hot topic in today's stock market is microcap | | | | stores nationwide, any savvy investor or trader will |
| stocks. If you've ever wondered what they are and | | | | jump at the chance to buy shares in that company. |
| why they are making people a ton of money then | | | | Profits selling those shoes in Wal Mart across the |
| read on and you will learn why they are so profitable. | | | | country are sure to increase! So the stock is a good |
| If you have ever traded stocks or know someone | | | | value. |
| who has invested or traded stocks then you will | | | | Now it doesn't always have to be a big-time |
| know that the blue chip stocks take forever to | | | | announcement it can also be that the microcap is |
| increase in value. They are high priced stocks too. | | | | climbing in value because of continued positive |
| You are lucky if you see a gain of 10% in one year | | | | progress the company is having and which traders |
| let alone one week. | | | | and investors are expecting. |
| Microcap stocks are a different breed of stock | | | | It should be noted that sometimes positive news |
| altogether. First of all they are low priced stocks. | | | | does not affect the microcap shares one way or the |
| Microcap stocks can easily gain 25% + in just one | | | | other. This is because of low trader or investor |
| day. And if there is good news on a particular | | | | awareness. This low awareness is because microcap |
| microcap stock then it can sometimes jump 100% | | | | companies usually do not contract with investor |
| and more. | | | | relations firms and therefore, even with positive |
| Common sense will tell you that it is a lot easier for a | | | | news, they have a hard time selling their stock. So |
| stock to jump from 2 cents to 10 cents (500% gain) | | | | just because a company has positive news it does |
| than it is for a stock to go from $20 to $100. Right? | | | | not always mean the stock will rise in value. |
| Well, that is exactly why microcap stocks are so | | | | To find microcap stocks that are on the brink of |
| lucrative and why smart traders include micro caps in | | | | making enormous gains in value you have to look for |
| their trading portfolio. | | | | one thing. VOLUME! It is the volume surges in micro |
| Now you might be asking what it is that makes micro | | | | caps that you need to see when you are looking for |
| cap stocks rise in value so quickly. It is almost always | | | | those big gainers. |
| because of positive news announcements about the | | | | High volume + rising stock price=buying pressure. |
| microcap company whose stock you are trading. | | | | The trick for you is to figure out how long the |
| Let's use this example: if a certain microcap company | | | | buying pressure will last. This is where you have to |
| that sells shoes sends out an announcement that it | | | | be a really, really good researcher or hire a |
| has received a contract to sell its shoes in Wal Mart | | | | researcher to do the work for you. |