Can You Make Money Trading Microcap Stocks?
70I have a passion for the stock market. Currently, I make money trading microcap stocks and with each success my passion grows.
I'm trading microcap stocks, sometimes referred to as penny stocks, because they are stocks that usually trade under $1.00 per share. They can be volatile but the amount of money I need to put up for a trade is low and the potential payoff can be enourmous.
If you are thinking of trying microcaps it might help to know that because they are so low in price you don't need to wait until you have a ton of cash to open a trading account before you start trading. You can open trading accounts with as little as $200 and start trading microcap stocks right away.
I started with $500 just to test the waters. I used $80 to trade one microcap stock and under 10 days I turned that into $2800. That was extraordinary. Don't expect the same results.
Today, because I've had some good trades I am able to invest more into trading.
How Did I Do That?
I found a service that gives me microcap stock picks and I follow their advice. I've continued to follow their advice and I am continuing to make money almost every week.
This service has picked stocks that have given its members 50%, 100%, 150%, 500% and even 1000% percent gains!
Of course it's just natural that some of the picks had losses. No one makes money every day or week trading stocks. But a few huge gains more than made up for that. I'm trading as a business and I use good money management skills to limit my risk.
I made the decision to use this service because I wanted to have an expert do the research that I don't have time to do anymore. Because microcap stocks make large percentage moves (both up and down) the potential for huge gains or losses is something I watch very closely. I limit the capital I use, use limit orders and stop losses and just try to be cautious without getting paralyzed.
What Service Do I Use?
I use Matt Morris of Microcap Millionaires. Matt is totally accessible through email and any questions anyone has are always answered on a very, very timely basis. He keeps his group deliberately small so that he can give personal attention to his stock clients..
This guy's stock trading system really works. To prove to you how Matt's newsletter/e-mails will get you 100% or more gains on a regular basis he even sends you 3 FREE stock picks to get you started without you having to lay out any money at all.
For more information Click Here!
How Microcap Millionaires Works
It's as simple as a timely, detailed e-mail!
Sunday night Matt sends an e-mail with detailed information about microcap stocks to trade during the week. He gives the buy and sell orders so you don't have to spend time working that out.
But, by giving these picks on Sunday night you have time to research the trades yourself and decide whether you want to trade or wait.
Then he updates you as things change in the market, alerting you to buy more or sell and take profits.
Then he periodically sends a spreedsheet that reports on all the trades in play, which ones were sold and what the percentage profit/loss was for each stock. You get to see and keep the report that shows the 100%, 500% and 1000% gains and more in your portfolio. Of course you could do that yourself but Matt is wonderful about really keeping a hands-on approach to his system. It's so nice to have a real live person working with you.
Comments
I was promised his first free stock picks for early next week ( today is 2/27/2009 ). I will report to readers how these stocks did in a week after I receive those free stock picks.
Cheers
OK Folks,
I got the first stock pick from Matt ( it was free ). However, he did not give an entry or exit point because i was not a subscriber.
I had to do it myself. The stock he picked had rumors of bankrupcy and was dumped from $4 to 0.79 cents in a few days !
That's when I got the e-mail telling me that this stock is poised for a nice bounce.
It put a LIMIT ORDER to buy the stock at 0.89 ( to prove that upward momentum is there ) the night I received his tip.
The next day, the stock started to zoom to $1.00, then $1.02, then $1.08. I started to take action and put a trailing stop at 5% of the price when it went down back to $1.04.
Guess what ? it moved back up to as high as $1.20 before going down to its closing price of $1.07. Because of my trailing stop, I sold the stock at $1.12 !
Guess what ? That's a gain of 40% in one day !
My only regret is I invested just $500.00 in the stock to make sure I don't lose a lot of money if it turned out to be a lemon.
I just wonder what their entry and exit points were because they did not provide it non-subscribers.
I am however impressed by the initial stock tip and do plan to subscribe after I get my second stock pick as they promised.
But this is my first experience.
Interesting thanx Nate I might try it out too got ripped off by doubling stocks but willing to try this one if this guy is not a pump and dump scammer.
James,
I think a week has passed so I can safely mention the stock he gave me ( and others ) to trade ( For free at that ).
The stock symbol was ( MIC ) -- Macquarie Infrastructure.
It was 0.79 the day he sent me his e-mail ( March 3,2009).
It is trading at $1.20 as of this writing ( went up as high as $1.31 last I saw a day later ). I write this on March 6,2009.
Note stock like these are NOT for long term investing. They are for TRADING. You get in at a price and watch it and put trailing stops or limits on it once you see upward momentum and are happy with the profits.
Microcap Millionaire gave me the tip for FREE without entry and exit points. They tell me that they DO give subscribers entry and exit points. I had to decide on my own when to enter and when to exit, but it stil made me some money.
My only regret is leaving too soon and not putting more money. But hey, I'm not greedy, a profit is a profit.
Folks,
I subscribed to Microcaps Millionaires after my first free tip made me money.
The subscription started March 6.
On March 10, I got my first recommendation.
I can't tell you the stock name yet, suffice it to say that it had rumors of going under when in fact it was solvent and was on its way to turning a profit ( riding on the coattails of the big 3 ).
The recommendation was to buy at or near market price ( on Tuesday it was trading between .029 and .038 ) and sell it at or better than .06 ( the newsletter believes it will be good for .06 to .10 ).
I bought at price of .035 and after that, put a sell limit of .055.
On Friday morning, the stock opened at .05 and moved all the way up to .064 before coming back down to .044 close.
My limit order triggered and I made close to 50% on this one trade.
Thus far, two good recommendations from this newsletter.
Also, they DO respond to questions.
I am happy thus far.
A sufficent time has passed such that I can shar with you the trade that was recommended to me on March 10 when I first subscribed ( see above post ). The Stock was HAYZ. It was recommended when it was trading between between .029 and .03. I sold too soon but of course made money on this recommendation ( I sold it at .055 ). The stock is trading today ( March 23 ) at 0.15.
I have to tell you that I have been batting 100% thus far ( another stock they recommended last week after this went up 400% ).
This subscription thus far has been worth every penny of the $49/month.
The great thing is they tell you the reasons why they believe a stock is poised to go up and entry and exit points. You can make money through the judicious use of SELL limit orders.
I am so glad you are doing well Nat. May it continue for a long time.
www.microcapmillionaireshotstocks.com
Thanks LoveBostons. I'd like to emphasize one thing --- there are risks in their picks in that most of their picks thus far ( I don't know the future) have been beaten down stocks that may or may not survive. For some reason, the guys at Microcap Millionaires have been doing their homework and notice that the pessimism is not warranted and they have been spot on thus far ( at least for 3 of the stock picks they recommended ).
What cannot be guaranteed is whether this streak will continue always. There could be some picks that may not make money. All I can say is thus far, since I subscribed, ALL their picks have been spot on.
My only regret is my being overly conservative and selling too soon ( a little below their recommended exit price ).
OK, Nat's experience mirrors mine. A lot of the Microcap Millionaire picks were spot on.
However, the streak seems to have come to an abrupt halt the past 2 months ( from late May to early July 2009 ).
They picked stocks like CPE, IGC, FRNTQ and EBHIQ ( the last two being bankrupcy plays ).
The problem is their entry points are too high and their expected exit points were never reached. They then had to send an e-mail asking you to sell.
I lost half of the money I invested in FRNTQ ( they recommended an entry point of less than 0.10 -- I bought at 0,09 ). The stock continued to plummet to 0.045 ( at which they sent an e-mail advising us to sell ).
As of this writing, they still have not advised a sell on EBHIQ ( which they recommended at an entry point of less than 0.20 ). The stock is trading now for less than 0.10 ( as at July 13, 2009 ).
Nat,
That is why most traders say Sell in May and Go Away.
Statistical studies have proven that the best trading periods are from October - May - a period of stronger gains versus what is known as the "summer doldrums."
Microcap Millionaires is a very good service but that May through September of summer doldrums is a killer.
How are you all doing with the service as of the past few months? I am very interested in joining their service and am looking for recommendations/advice. Are there any additional strategies that you have adopted that seem to work better for using MM? Thanks.
Beau,
I'm still trading with Microcap Millionaires and making money. I think the strategies that I use are the same ones any trader uses. Good money management. Don't get greedy and don't let fear hold you back either. If you follow Matt's instructions it helps you to keep your cool and make better trading decisions.
My only advice is that if you want to find out more about the service and if it will work for you then you should 1)take the 3 free stock picks that Matt offers before you join, and if you like what happens with those stock picks then 2)join for a month, and if it doesn't work for you Matt will give you the $49 membership fee right back.
You have nothing to lose and you will quench your curiosity.
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WizeTrade says:
2 years ago
That's amazing! I hope your system really works.