subject: How To Invest In Micro Cap Stocks [print this page] How To Invest In Micro Cap Stocks How To Invest In Micro Cap Stocks
Penny stocks can be an easy introduction if you are looking to start your investment career in the stock market.
Although it is not easy to locate these small cap shares as they are not traded over the big stock exchanges such as the NYSE or the NASDAQ. You should check out both exchanges once you have identified a stock that you like the look of.. The websites should be easily located by conducting a Google search.
If you are finding it difficult to sift through all the information about each micro cap stock and decide which will be a good investment you can discuss them with your broker or alternatively you can check out the following website Penny Stock Investing
You should open up an online account which will give you instant access to market data however brokers are still good as they tend to give you monthly updates on how your portfolio is performing.
It may be a bit harder then when looking at more established shares to locate good value small cap shares to buy, but the rewards are definitely worth it. But the rewards can definitely pay off as it is quite possible to turn a small amount of money into a substantial profit, all part of the attraction of trading micro cap stocks .
An investor will generally hold onto a stock for an extended period of time and ride out the changes in price over that time whilst a trader will hold onto a stock for a short period of time and catch the upswing and sell before the price moves down.
If you have decided that you only want to hold positions for the short term it is still worthwhile checking out the companies you want to trade as you may want to invest some of you profits long term in the good ones. Check out the financial history, profit and revenue streams as well as checking out the experience and history of management to make certain they have the relevant expertise to say what they are going to do.
You should set up a watchlist once you've discovered some companies you want to trade in order to get some idea of their activity as the key ingredient you are looking for when trading small cap stocks is volatility.
{If you want a more extensive introduction to investing check out How To Trade Small Cap Stocks}
