Micro cap Stocks Investments

In today's world market, one of the hottest topics Micro cap Stocks. So what is it basically? The answer lies in this very article. It contains also the reason why these stocks are so profitable and make people rich. The following has it all. 

If you have knowledge about stocks and stock markets, and have traded stocks before then you must be having the idea of blue chip stocks in endless time to increase its value. Firstly they are very expensive to store and secondly that they do not rise often. If you are lucky you can see a gain of 10% in one year let alone a week. 

Whereas the micro cap stocks are all are of different concept and different breeds. They are different, are profitable. They have many advantages. Firstly, the low prices, so buying them are not an issue and we can buy them in numbers. Micro cap stocks can easily get 25% + in just one day. And if there is good news in a specific micro cap stock, it can sometimes jump 100% and more. So these special circumstances, say it all about the benefits of it. No need to brag more about it. 

Well the basics will let you know that there is likely more increasing. Like for instance say that it is a lot easier for a stock to jump from 2 cents to 10 cents (500% gains) than it is for a stock to go from $ 20 to $ 100 right? So you get why these micro cap stocks are profitable, and all smart investors have in their portfolio. 

So the next question naturally arises in your mind is that why these stock prices always rise? The most common reason is due to positive news announcements about micro cap company whose shares you buy. 

To explain the above fact, let us take an example. A certain cloth company announces that it has received a contract to sell clothes in Wall Mart stores nationwide, any savvy investor or trader will jump at the chance to buy shares in the company. Gains from selling the clothes at Wall Mart across the country are sure to increase! So the stock is a good value. And people who want the good. 

Now notice things need not be the sole cause of increase in value. It may also be the continued positive development company is to have, and as traders and investors expect. 

Sometimes because of low economic or investment research awareness of the positive news does not help the growth of stock value. This low awareness is because micro cap companies generally do not contract with the investor relations firms, and therefore even with positive news, as they struggle to sell their shares. So just because a company has a positive news it does not always mean that the stock will rise in value.