Micro cap stocks can be a great way to make large profit opportunities, even if you don’t have a lot of funds to trade with. Although profit opportunities are high, it is hard to find good information and analysis on how to trade micro cap stocks. There are a lot of people that claim to be “experts” at trading these types of stocks, but you should do your research and obtain the advice of someone who has many years of experience with micro cap stocks.
Chuck Hughes has more than a decade’s experience in micro cap stock investment. Through the many years of micro cap trading, he has compiled this knowledge along with his opinions on successful microcap trading. With the right micro cap trading tools in tow, you can discover large profit opportunities and achieve high profit gains from micro cap trading.
Not convinced? View Chuck Hughes' micro cap trade results.
Before jumping into microcap investing, you should understand what microcap stocks are. Microcap stocks refer to the stock of public companies that have a low market capitalization of about $300 million or less. Microcap stocks are usually lower priced and are traded in lower volumes as compared to large cap stocks—blue chip stocks.
A big draw to microcap trading is the leverage that they provide. Because of the volatility of microcap stocks, every small change in price can result in large profits. For example, if you traded a microcap stock at $0.10 per share, a $0.01 increase would result in 10% gain. If it moves to $0.20 per share, you would have doubled your money.
Even though microcap trading can provide large profit gains, it can also work the other way. If the microcap stock price falls to $0.05, you would have lost half your money. Because of this, it is very important that you have the tools, knowledge and advice to benefit from microcap trading.
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