Penny Stock Trading – What Is It?

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Penny stock trading is the trading of small value stocks, also known as microcap stocks. The term penny stocks was founded many years ago as it used to be defined as all stocks that were traded below the price of $1 but now includes all stocks that trade under $5. Along with these stocks being low in price, the volume that are traded is also quite often low as a lot less number of shares are released. Quite a lot of companies that have these low priced shares have just been floated and are fairy young in terms of the stocks age.

Trading Penny Stocks

Trading penny stocks can be very lucrative which makes it very appealing to those who either like a bit of risk of really know what they are doing. If you know what you are doing you can stand to make very substantial gains in a very short amount of time because of low price you pay per share and the volatility of the market. You can sometimes make gains in the area of 500% or more easily when you think about it, say you buy a share for 5 c and then it is all of a sudden at 50c then you have made a 500% profit. Although you can make massive gains you also have to realize that it works both ways meaning that you can make big losses just as quick for this same reason.

Many new comers to the stock market start trading small cap stocks because of the low startup capital needed. You can start trading these small cap stocks with just a few hundred dollars whereas you would need at least a couple of thousand to get started trading blue chip stocks. For example, to buy just one share in apple at the moment would cost you around $483 (as of 7th October 2013).

Trading penny stocks has gained a reputation in some circles as being rigged in a way because of so called pump and dump tactics. A pump and dump tactic is like this, someone says to people that they know a lot about trading small cap stocks and they give you penny stock tips. They give a lot of people the same tip and because of the low volume of stocks traded the stock price rises artificially because there are a lot of people buying it at once, this is the pump. Then when the stock tip goes out to the investors a large volume of shares are sold off, the dump, and then the people that sell off while the price is still high make a handsome profit while those that don’t sell off in time end up making losses. This method only works if you are on the receiving end of the information and buy early and sell as soon as the tip comes to sell. If you are on holidays or unreachable and miss the stock tip to sell then you could lose everything. You can also end up making very big returns quite often if you receive good information.

Now that you know the basics behind penny stock trading you will be able to better understand what is going on and make a better informed decision if you wish to start your journey in the lucrative area of penny stock trading.

penny stock tips

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Microcap Millionaires Review

Microcap Millionaires Overall Rating (5 out of 5):

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Microcap millionaires provides quality advice on penny stock trading, forex markets and more money-making information from a convenient subscribers’ community. Scheduled emails reveal the hot information you need to build a great income trading stocks or forex, or just to make a little extra money on the side. Read on to learn the important details about Microcap Millionaires without a lot of fluff and marketing speech so you can decide easily if this product is right for you.

Microcap Millionaires Newsletter

Click here to see Microcap Millionaires results for 2014! It is truly amazing.

Matt Morris, author of Microcap Millionaires, has been trading penny stocks for a long time. He has developed an amazing stock picking strategy designed to bring the best returns in the quickest amount of time. The penny stock picks, or microcap picks, in each email are chosen using Matt’s extensive experience and this strategy. Take a look at his sales page to check out the breathtaking profits for yourself.

 What does Microcap Millionaires give you?

  1. Regular emails with hot penny stock alerts (3-5 each week)
  2. Members’ only private forum access
  3. Twitter alerts directly to your phone or mobile device
  4. Pre-promo site area
  5. Special members’ only reports
  6. Help finding online trading systems and brokers
  7. Personal support

Subscribe to the 100% free newsletter to get the following bonuses:

  1. PDF file “Penny Stock Basics” to get your started
  2. Two free penny stock recommendations
  3. Educational videos to teach you about small cap stock options
  4. Emailed watch lists for hot penny stocks

 Microcap Millionaires Is The Missing Piece

The vast amounts of quality information and guidance you receive makes this a great value!

The Good:

  • Matt’s penny stock choices are very accurate. While not every Microcap Millionaires pick is going to create profit (That would be impossible!), the long term strategy results in money coming in regularly.
  • Tons of bonuses teach you about the stock market and stock trading practices so you know what you are doing and are not flying blind in a new industry. This allows you to maintain control of your own finances more closely.
  • Private members’ website and forum provides community support and fellowship to help each other realize dreams and income goals. If Microcap Millionaires did not work, the forum would not be possible, as people would not stick around.
  • No need to spend years trying to figure out trends and your own strategy through countless hours of studying stock prices and small cap stocks. Why not start with a proven formula that tells you which penny stocks to buy?
  • The monthly subscription plan gives you freedom to pay as you go instead of investing thousands of dollars on similar programs. Keep paying as long as you find value at Microcap Millionaires, and retain the freedom to cancel if you decide the program is not right for you.
  • Get started with stock marketing buying and selling quickly.
  • A limited time 50% discount is available right now!


The Bad:

  • Long term commitment needed to reach overall profits. Not every stock pick will result in large gains for you.
  • Do not get emotional and consider this gambling. Trust the advice of experts and buy and sell based on quality information.


The Bottom Line:

The internet offers a continuously growing collection of products claiming to teach you how to make a lot of money quickly. Any skepticism about this penny stock newsletter is understandable, but I would love to have the opportunity to demonstrate that it is truly one of the rare legitimate products that offers a real and tangible benefit.

Visit the sales page and see the proof for yourself.

Microcap Millionaires is not an expensive program that becomes obsolete one month after purchasing. It provides a real live expert who makes money with penny stocks and is constantly tweaking his strategies to benefit himself and everyone in the program. The subscription-based pricing model, customers are free to cancel and leave any time Matt does not provide quality information and advice. It benefits him greatly to continue sharing the hottest stock tips and up-to-date information with you.

Take a moment to daydream about all those things you have always wanted but never thought were possibilities. Maybe you want to travel to exotic countries, buy some designer clothes or a hot sports car. Perhaps you simply dream about getting out from under debt or paying for your children’s University without having to mortgage your home.

I have decided to begin the process of realizing all my dreams by trying this system and all the expert advice and tips included. It is time to stop thinking “IF” and start thinking “WHEN” all these wonderful things will come into my life. If you want to begin changing your life for the better, this program could be the right choice for you as well.

Was this review of Microcap Millionaires helpful to you? Share it with friends and family by using the convenient social media site buttons below. So many people want to make their lives better. Why not let them know about the program that will help?

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Here is a video i found with some testimonials that Matt has received about his penny stock newsletter.

How To Get Information On Microcap Companies

Investing in Microcap stocks can be rewarding both financially and in time spent especially when using Microcap Millionaires advice. The key to making the most of your investment is research. And it need not be an exhaustive process. By delving deeper  into the background and future of a company you are looking to buy into, you can seriously hedge the odds in your favor. But there has traditionally been a problem with this.

Check The Facts On Microcap Companies

The main one is how the stock is traded. If the company floats its stock on The American Stock Exchange or the NASDAQ then it is a relatively straight forward task. Since all of the publicly traded companies are known well up to a point and most probably have a track record. It isn’t too hard to find the necessary information on these companies.

But what about those stocks held by companies that trade Over The Counter?

These , often those recommended by Microcap Millionaires, companies that don’t file financial information with the SEC can be hard to pin down. It has been known in the past for dubious parties to either inflate the value of these stocks artificially. Or in some circumstances even commit fraudulent activity to artificially sell stocks at a greater value than they are technically worth.

Your first port of call would of course be the Pink Sheets and OTCBB. Here you can check the companies basic information and the price they are asking for shares. If the company has more than $10 million in assets or 2000 investors, they they are required to file financial reports with the SEC. Although once again, “cooking the books” has been seen on a regular basis and is being stamped out across the board.


Once you have the information you require from the financial regulation bodies. Then you can do similar research on your own. In the information age, it is fairly straight forward to hire a researcher or a Virtual assistant. They can perform a series of searches online and compile together a hit list of basic factors that can help you make an informed decision about your potential investment.

Some things you should cover are:

Has the company been in the news? A simple Google News search of the company name or its trading name should flag up any positive/negative press. If the news is negative then why is it? Has the company shut down any of its operations?

What does a Google search say? Just a simple straight forward Google search can flag up anything from the companies head quarters being built. To an employee suing for an accident in the workplace. It can also provide you with location information. And you can check the companies headquarters on Google Maps. To see if the surroundings fit with the financial reports being filed with the SEC.

Research and due diligence is the key.

Where Do Microcap Stocks Trade

Microcap Stocks Graph

Trading stocks and shares has been a major source of wealth creation for hundreds of years. And whilst the methods have changed over the years, the idea of buying shares in growing companies has never changed. Microcap Stocks or Penny Stocks are stocks in companies that are worth between $50 million and $300 million. They are the hundreds of small companies that make up the breadth of the economy and employ thousands of people. These stocks tend to be more lucrative that those bought and sold in nano stock companies. And certainly easier to get started in than the larger corporations.  By trading penny stocks you are securing a foothold in the financial market for a relatively small amount of money. Not only are these companies comparatively low cost options to start trading stocks in, they are some of the most promising and vibrant companies around.


So if you are thinking of trading stocks using Microcap Millionaires and need to get started. Where would you find them?


OTC or Over The Counter Trading

The stock exchange was design primarily as a form of assurance, liquidity and overall safety when trading stocks. The benefit of this is a uniform way of trading and also transparency since the prices are being quoted openly for all to see. And the trade is being conducted publicly. Over The Counter stocks are a bilateral contract. Meaning that the stock price, quantity and quality is only divulged between the buyer and seller. With the obvious exception of the trader or banker negotiating the trade. Because there is no requirement for transparency. The two parties may agree on an unusual quantity or price. It is a private contract. The prices for these stocks are quoted directly in the Pink Sheets or the OTCBB.

 How OTC Trading Works

NASDAQ or AMEX (American Stock Exchange)

There are some major differences between the Over The counter trade and the exchange trade. For  stock to be entered into the exchange it has to have a certain uniformity. It has to be quantified and priced at a uniform rate to be able to pass through the exchange. Not only this, but the prices are shown publicly so absolute transparency is guaranteed. The stock exchange also creates a reasonable amount of liquidity and security. Should either of the parties trading default, then there are measures put in place to secure the trade. Unlike Over The Counter trading where should either party default, then the trade is over and money could be lost.


So as you can see there are a few different ways to trade penny stocks. The most important thing is to find a trader or facilitator to see the process through to fruition. When trading stocks using Microcap Millionaires you will want to execute trades quickly so do your homework to find the best solution for you.

 Microcap Stock Trading


Microcap Millionaires – Where it all began?

Before I delve into Microcap Millionaires I need to tell you the background as to why I even started looking for investment opportunities, I think my story will be very similar to a lot of you out there. I have been a trying to be a bit of an entrepreneur over the past few years looking for different ideas and different strategies to make multiple streams of income. I realized that I am not going to get where I want to get in life by just working a 9 to 5 job. I have a University degree and I have an average job but still find it difficult to get ahead in this day and age, I have been living my life from pay check to pay check and there is never anything left over. A while back I decided to do something about it so I started a search for business ideas to start generating multiple streams of income so I can finally do the things I want to do and finally start building some wealth.

In my search, I was reading this entrepreneurial book about the differences in mind set between the wealthy and poor and difference in the way parents teach their kids about wealth and it really rang home to me. The author was explaining that the wealthy teach their kids a golden rule to accumulating wealth is that you have to spend less than you earn and the remainder left over you need to put it to work to grow your wealth. I know that it is easy for a rich person to say that but the theory is spot on, if you always save a little every payday and invest the rest responsibly then over time you will accumulate wealth. I f you always spend all of your money then you can never grow you money.

So since then I have been finding various different ways to invest my money or make my money work for me. I have been looking for sustainable business opportunities and one of those such opportunities I came across was Microcap Millionaires. While I was looking for different ways to invest some of my money I started to think of trading stocks on the share market like so many others. When I started looking into it my friend told me about trading penny stocks as there is a lot more faster gains that can be made if you have good advice but there are also quicker losses. This penny stock trading intrigued me so I started to research more and came across the Microcap Millionaires newsletter. What followed surprised the hell out of me.

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